Fortune Magazine journalist Eugenia Levenson writes about reverse mortgages and the housing Bill that congress passed in this months magazine. Levenson points out that while the Bill was aimed primarily at stemming foreclosures and shoring up Fannie and Freddie, there are provisions in the bill to make reverse mortgages a better deal for seniors.
The article talks about why lawmakers are paying attention to the product because these once-marginal products have exploded over the past decade. With slimmer savings and pensions than their parents had, Levenson expects more boomers will be turning to reverse mortgages when they retire.
Levenson focuses mainly on the provisions of the Bill which prohibit lenders from requiring borrowers to buy investments or insurance products as a condition of getting the loan. What they don’t cover is the new lending limits which is one of the most important features.
While I don’t think the article is anything great, getting coverage from a magazine like Fortune is definitely a good thing. To read a copy of the article click the link below.