Saying it's losing money on reverse mortgages, the U.S. Department of Housing and Urban Development announced Tuesday, Aug. 29, it will increase upfront fees and tighten limits for the program starting in September and October to avoid having to dip into the U.S. Treasury to cover troubled borrowers. The reforms, announced during a morning conference call, are designed to stem losses totaling $ 11.7 billion since fiscal year 2009 to the Federal Housing Administration, which insures reverse mortgages, a loan available to homeowners age 62 and over.
