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Considering Age in Reverse Mortgage Programs
Reverse mortgage programs are specifically designed to provide a credit program for elderly borrowers and to meet a type of credit need specific to such customers. Offering such a credit program is permissible under Regulation B as long as qualification for the credit is based on a legal use of age.
Regulation B defines "elderly" as age 62 or older and permits the use of this age category to favor elderly applicants. The revisions to the Official Staff Commentary (new Paragraph 6(b)(2)-4) clarify that it is appropriate to use age 62 as an age qualification for a reverse mortgage program. This is permissible even though this credit product would not be available to younger borrowers.
Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 16, 10/96
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