The article this week demonstrates the lingering misconceptions about the HECM program. This one is a doozie! The New York Times, hailed by many as a bastion of truth, stated that the bank (lender) owns the home after you die. This is the worst of the myths that still persist out there. HECM industry experts quickly pointed out the major error and got a correction. But who reads corrections? The damage was done and a myth perpetuated. Fortunately errors like this in the mainstream press and in financial publications are definitely less common now than even a year or so ago. Recent legislation and regulatory actions have improved the safety and reputation of the HECM products. But never did the lender own the home after the death or relocation of the homeowners!
Click here to read the article.