Here is what i found on it but i want to know is it really beneficial for the home owner. I don't understand all the legal details.

Reverse mortgages continue to be one of the few areas of growth within the mortgage industry. The National Reverse Mortgage Lenders Association announced today that the industry has closed 112,100 Home Equity Conversion Mortgages or HECMs in Fiscal Year (FY) 2008, which ended September 30, 2008, surpassing the record loan volume for FY 2007, according to data provided by the Department of Housing and Urban Development (HUD).

This current loan volume continues a steady uptrend for the industry each year since 2001. Most recently, loan production has grown from 43,131 in FY 2005 to 76,351 in FY 2006 before climbing to 107,558 in FY 2007. The Homeownership and Economic Recovery Act of 2008 may have dampened growth temporarily as it is likely many prospective borrowers have been waiting for HUD to implement new provisions that among other things will allow borrowers to receive a higher benefit and pay a lower origination fee.

“Reverse mortgages are really one of the only positive stories in financial services this year because they provide a safe, proven solution to many Americans’ retirement funding needs, especially during the current financial crisis,” said Peter Bell, President of National Reverse Mortgage Lenders Association. “We expect the growth of reverse mortgages to accelerate as seniors look for additional sources of income and because the new provisions of the Homeownership Act of 2008 broaden the market for reverse mortgages while making them more attractive.”

New Loan Limits
As part of the Homeownership Act of 2008, The Department of Housing and Urban Development (HUD) recently approved a single national loan limit of $417,000 for federally insured Home Equity Conversion Mortgage (HECM) reverse mortgages. HUD is expecting the loan limit to be effective around November 1st.

The new, higher lending limit will enable borrowers to obtain a greater benefit if their home value is higher than the previous HUD limit. Previously, the HECM program assigned different lending limits by county ranging from $200,160 in rural areas to $362,790 in the highest home value areas.

Similarly, existing borrowers whose home value is greater than the new HUD limit may be able to increase their benefit by refinancing their reverse mortgage and are encouraged to contact their lenders.

HUD is expected to implement the other reverse mortgage provisions from the Homeownership Act in the coming months. For a complete list of provisions, visit NRMLA*>*Reverse Mortgage.
HELP i want to know the details are behind this because my mom wants to do this and i don't think it is a good idea.

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The Reverse Mortgage is a very safe program. It is probably the safest senior product on the market today. However, just like everything, there are areas that you want to keep a special eye on. Some of these have been explored in this article, but there are others. The best way to make sure you are avoiding scams is to constantly keep yourself aware of what is going on in the industry and with your loan.

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Reverse Mortgage Information For Dummy

Reverse mortgage as its name indicates operates in a manner opposite to that of the typical mortgage such as a home loan. In a typical mortgage, you borrow money in lump-sum right at the beginning and then pay it back over a period of time. In your payback -- the EMI -- a portion goes towards paying the interest and the remaining goes towards paying back principal.

All along, you pledge the asset -- namely the home you have bought with the loan -- to the bank. This asset is the security against which the bank is lending to you. In reverse mortgage, you pledge a property you already own (with no existing loan outstanding against it). The bank in turn gives you a series of cash-flows for a fixed tenure. These can be thought of as reverse EMIs.

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A reverse mortgage provides income that people can tap into for their retirement. The advantage of a reverse mortgage is that the borrower's credit is not relevant, and is often unchecked, because the borrower does not need to make any payments. Because the home serves as collateral, it must be sold in order to repay the mortgage when the borrower dies (in some cases, the heirs have the option of repaying the mortgage without selling the home).

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A reverse mortgage is also known as the lifetime mortgage, well it is a loan available to seniors, and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves.

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