Heidi Kaplan is a senior community affairs analyst with the Federal Reserve System Board of Governors.
COVID-19-related relief efforts were significant, but funding access and program capacity were challenges, survey respondents said.
A reverse mortgage is a special type of home loan that allows eligible homeowners to convert a portion of their home’s equity into cash. Despite recent troubles in the national mortgage market, reverse mortgages are growing at a rapid rate. Expansion of this hot spot in mortgage lending is expected to continue with increasingly flexible products, new sources of capital and a growing supply of potential borrowers. As the reverse mortgage market develops, it is important that potential borrowers are educated about this complex product to protect them from taking out unsuitable loans.