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Read more: The Trouble with HECMs: Part IIIn the first part of this series, we outlined “The Trouble with HECMs,” the result of extremely high Loan-to-Value (“LTV”) ratios permitted by the HECM program, which left FHA highly exposed to losses during the current deep slump in home prices. FHA projects that it will lose $798 million on $30 billion of HECM loans…
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Read more: The Trouble with HECMs: FHA’s Bumpy Road to Grandma’s HouseThe reverse mortgage industry prides itself as the lenders of the Good Mortgage: the mortgage that not only provides essential retirement funds but also the mortgage that comes to the rescue, preventing foreclosures by paying off old “forward mortgages,” delinquent property taxes and unpaid insurance bills. A growth sector in an otherwise ailing mortgage industry,…