Question:
With the bank problems we are hearing about and seeing, is there any effect on our reverse mortgage funds?

Answer:
None of what is happening with the banks will affect your reverse mortgage. The FHA HECM is a government insured loan. If your lender went out of business, FHA would step in and cover the payments for these loans. The government heavily regulates what type of investments reverse mortgage lenders can make with your equity. Crypto-currency and high risk investments are prohibited investments for reverse mortgage lenders.

Have a question for Traci, email her here: traci@ffaz.us