Dan Hultquist, MBA

HECM Debt Consolidation (HDC) uses a reverse mortgage to leverage housing wealth to pay off existing mortgages, liens against the property, installment debt, and revolving consumer debt.

HUD recently updated their Cash for Keys program, upping the ante so to speak. The revised guidelines are significant improvements and represent much-needed changes to the HECM reverse mortgage.

In 2015, HUD began requiring every lender to examine the financial capacity of each borrower and the sustainability of each HECM loan. This is done by looking at their residual income.

A non-borrowing spouse (NBS) is the spouse of a reverse mortgage borrower that will not be a borrower. But the guidelines are not that simple and are commonly misunderstood.