While addressing Zillow’s Housing Roadmap conference this week in Washington, DC, Secretary of Housing and Urban Development Julian Castro provided some of his first public comments in support of the HECM program as one option to help older Americans get through retirement.
Zillow chief economist Stan Humphries moderated a “fire side” chat with Secretary Castro during which a question was submitted via twitter about what can be done to help people who are approaching retirement with debt on their homes and inadequate savings.
“For as much as we focus on Millennials, the fastest growing segment of our population is people over the age of 65,” said Secretary Castro. “We believe there are different ways that we can be helpful. One of them is as straight forward as housing counseling. Another is, of course, the HECM program that has had its challenges but if done right can work for older Americans.”
When asked to explain the HECM, Secretary Castro said, “This is the reverse mortgage program. It allows you to borrow off of the equity in your home. This doesn’t fit for everyone but when used under the right circumstances – that is making it through that time period (retirement) – this may work for them.
To view the entire conversation, please click here.