How have recent regulatory changes improved the safety of reverse mortgages?

In the last several decades, regulatory changes particularly to the financial assessment portion of the application, have contributed to increased reverse mortgage safety. Home Equity Conversion Mortgage (HECM) borrowers receive protections associated with oversight from the U.S. Department of Housing and Urban Development (HUD). These protections include:

• Lenders are now required to conduct financial assessments to ensure borrowers can meet their obligations, like property taxes and insurance.
• Eligible non-borrowing spouses can remain in their homes upon the borrowing spouse’s death.