Reverse Mortgage Changes Will Protect (and Hurt) ConsumersThe beginning of August was an important month for the Reverse Mortgage Program. President Obama signed the Reverse Mortgage Stabilization Act of 2013 in law and with it set into motion a chain of events that will potentially change the reverse mortgage program as we know it.Most importantly, the Stabilization Act allows the Federal Housing Administration to make changes to the program without prior approval from Congress. In short, FHA has the power to adapt the program as they see fit, based on consumer experiences and need, on their own. I’m sure if a change comes off as less than satisfactory, there will be steps to fix, or eliminate it all together. As of now, however, any changes made by the FHA is fair game.One of the recent upcoming changes to the reverse mortgage program is the consolidation of the current HECM Standard and HECM Savers into one product.This is in addition to the previous proposed changes which include a financial assessment of the borrower (s), mandatory set asides for property taxes and homeowners’ insurance as well as restrictions on the amount of funds that can initially be withdrawn.It’s not to say these changes won’t work. I can’t say that because they haven’t even been implemented yet. We still have a ways to go before we can see and report any significant consequences. In the meantime, all we can do is educate current and potential clients on how these upcoming changes will potentially affect them.In short:

Modifications to the current product may reduce the amount of money you can qualify for.

New restrictions would limit access to loan proceeds based on outstanding financial obligations such as mortgage payments.

The introduction of financial assessments would mean seniors with poor credit, cash flow restraints and a history of homeowners’ insurance or property tax delinquencies may not qualify.

It’s scary to think about how these changes are poised to make the reverse mortgage program better and add some much-needed stability. However, it’s also scary to think about how many people can potentially be left out because of these changes.

If you’ve been thinking about getting a reverse mortgage, the time to wait is over. If you are on the fence, jump off, and take the plunge into a comfortable retirement. The reverse mortgage program is changing so, at the risk of sounding like a cliche, “get it while it’s hot!”Interested in a reverse mortgage or simply have questions? Let us know at PS Financial Services by calling (888) 845-6630 or sending us an email at We do not pressure those who inquire.Click here for more information about the elimination of the reverse mortgage program as we know it: