Big Changes Coming to Reverse Mortgages

Most reverse mortgage borrowers choose to tap their home equity in a lump sum payment provided by the lender, rather than as a line of credit. But that offering is about to change. According to a spokesman for the U.S. Department of Housing and Urban Development, lenders will stop providing huge lump sums that equal all or most of the equity in a borrower’s home. Instead, new guidelines about to be released will require borrowers to set aside a portion …