No. of Recommendations: 5
It's both of them. Corporate DEMs taking Wall Street money are as much to blame as the other guys. The problem goes all the way back to the Clinton Admin.

Actually, the current problems go back to the Reagan Administration, when HUD was authorized to begin guaranteeing reverse mortgages, and they developed HECMs (Home Equity Conversion Mortgages). From that point, almost all reverse mortgages issued have been HECMs. Prior to that, all reverse mortgages were private mortgages, and there were even more egregious issues, which is why HUD was authorized to step in.

That said, many of the problems cited in the story are problems that would not occur with the reverse mortgages issued today, as regulations have been strengthened significantly during the 2013 - 2017 timeframe.

AJ
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