FHA presents new reverse mortgage plan aimed at senior citizen homeowners

Federal officials announced a new mortgage plan today targeted at senior citizen homeowners. The new reverse mortgage option is designed for homeowners taking out smaller loans than those offered in the standard federally insured reverse mortgage program. The new reverse mortgage option, known as the Home Equity Conversion Mortgage Saver, was created for homeowners who want to avoid the high cost of starting a standard reverse mortgage, according to David Stevens, commissioner of the FHA. “We have noted concerns that some senior citizens find that our fees are too high for them,” Stevens said. “In response, we created [the new program], which will provide seniors with a reverse mortgage option that significantly lowers costs.” TRD