To ensure the viability of the reverse mortgage program, the FHA made the following changes:
October 2013: Loan eligibility tables were revised to reduce the amount available to homeowners and to encourage homeowners to receive less in the first year of the loan term. The purpose of these changes was to preserve homeowner equity and to reduce the chance that the amount owed on the reverse mortgage would ever exceed the value of the home.
January 2014: Homeowner qualification criteria were introduced to ensure that the homeowner would be in a position to pay home insurance and property taxes on an ongoing basis. For homeowners who are unable to show that they have sufficient ongoing cash flow (from Social Security, pension, distributions from asset accounts such as IRAs) to pay these costs for an extended period, the FHA requires that some of the available reverse mortgage benefits be set aside to cover these projected expenses.