Historically, the cost of reverse mortgages has been higher than conventional mortgages, but without enough lenders competing for borrowers, those costs could go even higher, Van Dyke says, further restricting the availability of the product for seniors.
"There's nothing stopping banks from pulling out of this program," Van Dyke says. "But as soon as the government realizes that this program has to be adjusted to work with the private sector, and the private sector really is the most efficient, they're going to have to work hand in hand."
"This doesn't need to be a welfare program," he adds. "For people who have legitimate equity in their properties, this can still be a win-win [program] if it's designed properly."