By Nick Timiraos | The Wall Street Journal
A federal court rejected the Obama administration’s interpretation of a law governing a popular mortgage program for senior citizens that had led some homeowners to face foreclosure after a spouse died.
The decision, handed down Monday, threatens to increase potential losses for the federally insured reverse-mortgage program, which allows homeowners 62 years or older to borrow money against the value of their homes. When the borrower moves or dies, the lender that originated the reverse mortgage takes possession of the home and sells it, and the proceeds are used to repay the loan.
