Wells Fargo to stop making reverse mortgages

Wells Fargo to stop making reverse mortgages

Wells Fargo Home Mortgage said Thursday that it will no longer make so-called reverse mortgage loans, citing unpredictable home values and restrictions that make it difficult to determine if borrowers can afford homeowners’ insurance and other financial obligations.

Reverse mortgages are typically sold to people over age 62 who want to access the equity in their homes for personal expenses, such as medical bills. But unlike home equity loans, reverse mortgages don’t have to be repaid until the homeowner sells the property or passes away.

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