Reverse Mortgages Production to Drop 20%

Reverse mortgage is projected to decrease by 20% in 2010 according to Torrey Larsen, President of Security One Lending, San Diego, CA. In 2009 reverse mortgages increased 25% to $30.2 billion. Larsen sees increasing popularity for reverse mortgages returning. "I am also encouraged by the Obama Administration requesting a $250 million in credit subsidy for the FHA's reverse mortgage program along with a contingency appropriation to meet all program demand, even if demand exceeds projections," said Larsen.