Policy Documents

The Reverse Mortgage Enabling Act

May 8, 1995

In this model legislation, the bill states that it would allow persons to meet their financial needs by accessing the equity in their home through a reverse mortgage. Monies secured by this means would allow elderly homeowners to maintain ownership of their homes while being able to pay for long-term care, whether at home or in an institution. These resources could also be used to pay for the premiums for long-term care, if needed. Home equity of the elderly is estimated to be over $800 billion, which is a vast resource of financing long-term care. In fact, 75 percent of the population over the age of 65 own their own homes.