Legacy Perceptions Continue To Shape Views Of Reverse Mortgages

Industry experts say outdated beliefs about reverse mortgages persist despite program evolution

Published on Feb. 13, 2026

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Reverse mortgages have evolved significantly over the years, but many people, including older homeowners and their heirs, still hold outdated beliefs rooted in myths and misconceptions about these products. Industry insiders say legacy perceptions, rather than current program rules and consumer protections, often shape how older homeowners evaluate whether home equity solutions can play a role in retirement planning.

Why it matters

Reverse mortgages can be a powerful financial tool for retirees, but outdated perceptions may prevent some from fully understanding their options. Educating the public about the realities of modern reverse mortgages is important, as they can supplement retirement income, cover healthcare costs, and help aging Americans access their home equity.

The details

According to industry experts, some of the most common legacy perceptions about reverse mortgages include: homeowners losing ownership of their home, lenders taking the home when the borrower dies, reverse mortgages being a last resort, heirs inheriting debt, lack of consumer protections, heirs automatically losing options if the borrower dies, reverse mortgages being expensive, and reverse mortgages affecting Social Security and Medicare eligibility. In reality, reverse mortgage borrowers retain home ownership, heirs can inherit the home, reverse mortgages can be a strategic retirement planning tool, heirs do not inherit debt, and there are significant consumer protections in place.

  • National Reverse Mortgage Day is an opportunity to encourage education and awareness around modern senior home equity solutions.

The players

Melissa Macerato

Chief Revenue & Marketing Officer of Longbridge Financial.

Longbridge Financial

A nationally recognized mortgage lender and servicer focused on helping older homeowners access their home equity through flexible, responsible lending solutions designed to support a more secure retirement.

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What they’re saying

“Many of the concerns retirees express today reflect how reverse mortgages were viewed in the past, not how they function now. That disconnect can prevent people from asking questions or fully understanding their options.”

— Melissa Macerato, Chief Revenue & Marketing Officer (Longbridge Financial)

“Many of these legacy perceptions persist even as retirees live longer, face higher costs, and rely more heavily on housing wealth as a primary financial asset. National Reverse Mortgage Day is an opportunity to encourage education and awareness around modern senior home equity solutions.”

— Melissa Macerato, Chief Revenue & Marketing Officer (Longbridge Financial)

The takeaway

Educating the public about the realities of modern reverse mortgages is crucial, as these products can provide valuable financial options for retirees, but outdated perceptions may prevent some from fully understanding their benefits. As the retirement landscape evolves, it's important for older homeowners and their families to seek out accurate, up-to-date information when considering home equity solutions.