Halt of HUD Reverse Mortgages Opens a Door
Timmons, Heather, American Banker
The law creating the Home Equity Conversion Mortgage, offered through HUD, expired Sept. 30, giving lenders a chance to step up marketing of their own products.
Equity conversion mortgages, better known as reverse mortgages, generally allow homeowners 62 years of age or more to borrow money against their home equity, with no need to make repayment until the house is sold or ownership is transferred.
The loan proceeds are often received in monthly payments but can also be paid out on other schedules, including a lump sum.
Targeted toward income-poor but home-rich seniors, reverse mortgages occupy a small but growing market niche. About 25,000 such mortgages exist in …
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Publication information: Article title: Halt of HUD Reverse Mortgages Opens a Door. Contributors: Timmons, Heather - Author. Magazine title: American Banker. Volume: 160. Issue: 192 Publication date: October 5, 1995. Page number: 11. © 2009 SourceMedia, Inc. COPYRIGHT 1995 Gale Group.
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