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HUD's reverse mortgage reform proposals gain national attention

Two consumer-oriented advocacy groups lauded the Department of Housing and Urban Development for proposing several steps that can be taken to revamp and strengthen the government's reverse mortgage program.

The California Advocates for Nursing Home Reform and the Consumers Union said they mostly agreed with HUD's proposal to cut losses and strengthen the FHA Home Equity Conversion Mortgage program.

The FHA would like to reduce the maximum amount of funds available to an HECM reverse mortgage borrower by consolidating the government's HECM Saver and HECM Standard programs.

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