WASHINGTON (9/26/14)--The Consumer Financial Protection Bureau (CFPB) has announced two changes to its reverse mortgage guide in response to recent changes to the process.
A reverse mortgage is a type of home equity loan sold to homeowners over age 62. The loan allows homeowners to access a portion of their home equity as cash. Interest is added to the loan balance each month, and the balance grows. The loan must be repaid when the last borrower, co-borrower or eligible spouse sells the home, moves out of the home, or dies.
The two major changes to the bureau's guide are:
The guide recommends homeowners interested in pursuing a reverse mortgage speak to U.S. Department of Housing and Urban Development-approved reverse mortgage counselors.
Use the resource link below to access the bureau's reverse mortgage guide.