Is a Reverse Mortgage safe?
Reverse Mortgage loans were designed by the U.S. Department of Housing and Urban Development (HUD), Fannie Mae and other private institutions. Most of the Reverse Mortgages originated today are insured by the Federal Housing Administration (FHA) which is backed by the U.S. Government.
All borrowers are required to obtain HUD approved, third party counseling prior to getting a Reverse Mortgage. This counseling can be very helpful in answering any questions you have.
The goal of the counseling is to:
- Further educate the borrower about the specifics of a reverse mortgage
- Explain the reverse mortgage process
- Explore other options that may be available
- Discuss any financial or tax implications
- Review associated costs and fees
- Discuss the role and relationship between the borrower (homeowner) and the lender, and/or other professional advisors.
We also encourage you to review the independent consumer information from these well known National Organizations:
- The National Reverse Mortgage Lenders Association (NRMLA)
- AARP- Reverse Mortgages
- The U.S. Department of Housing and Urban Development
- Fannie Mae
