Proposed Changes to the Reverse Mortgage Program
- The AARP supports the proposed changes to the Reverse Mortgage Program. These include a financial assessment (to determine Reverse Mortgage Program eligibility), property taxes and homeowners' insurance set asides (in order to avoid foreclosure) and limited upfront cash withdrawals.
- AARP proposes HUD is required report to Congress every two years. This could potentially eliminating any problems that have arisen from HUD's inability to eliminate problems in the past but also might lead to further changes to the Reverse Mortgage Program. The AARP believes this proposed change will allow Congress members to urge HUD to fix problems fast than they have in the past.
- AARP believes the Consumer Financial Protection Bureau should determine Suitability Standards to determine when a Reverse Mortgage Program is right for seniors.
- AARP wants all available Reverse Mortgage Programs presented to seniors.
- AARP proposed HUD should investigate any potential case of Reverse Mortgage Program fraud in the marketplace. Also, invest in new ways to prevent it if it should become prevalent (not that any details suggest it has).
- AARP finally proposes that HUD should establish the appropriate use of a Reverse Mortgage Program. In the end, it is up to the senior homeowner, however to determine if a Reverse Mortgage Program is right for them in their personal situation.
For more details, watch the Reverse Focus video outlining the specific details.