In 2018 taxpayers were on the hook for over $13,000,000,000 from reverse mortgage foreclosures.
"“They want to stop the bleeding,” Lynn Drysdale, an attorney who works with Jacksonville Area Legal Aid, said of lenders. “They have to go through a foreclosure before they can file a claim with HUD (Housing and Urban Development).”
Because the loan is federally insured, the government will make up most of the difference between what is owed on the mortgage and what is recouped from the sale of a foreclosed home. The defaults have caused a drain on the government’s Mutual Mortgage Insurance Fund, according to a Federal Housing Administration report to Congress. The insurance fund had $2.11 billion in fiscal year 2018, but it had to pay $15.75 billion to cover claims filed by reverse mortgage lenders, leaving the fund's reverse mortgage portfolio more than $13 billion in the hole, the report stated."
https://www.naplesnews.com/story/new...ss/1192702001/