If you’ve been following The Reality of Real Estate Podcast, you know we tackle real-world housing topics that impact homeowners across Central Virginia and beyond. In Episode 71, Cynthia Hash dives into an important conversation: reverse mortgages (HECMs), mortgage-backed securities (HMBS), and the growing pressure of rising property taxes—especially for retirees.

Listener Insight: Real Estate & Estate Planning in Action

Thank you to our listeners who continue to share real-life experiences. Following Episode 67 on home and estate planning, one listener shared how a simple system outlining an executor and inheritance distribution—paired with a basic will—helped their family avoid probate.

This is a powerful reminder that planning ahead doesn’t have to be complicated—but it does need to be intentional.

Charlottesville Area Market Snapshot – Q4 2025

Here’s a quick look at the Charlottesville Area Association of REALTORS® (CAAR) market trends:

• Market activity remains steady despite affordability challenges
• Inventory constraints continue to impact buyers
• Property values remain strong, increasing homeowner equity

Explore the full report at FindHomesUSA.com under Market Reports.

What Is a HECM (Reverse Mortgage)?

A Home Equity Conversion Mortgage (HECM) is the most common type of reverse mortgage, insured by the Federal Housing Administration (FHA).

How It Works:

• Available to homeowners age 62+
• Converts home equity into cash
• No required monthly mortgage payments (in most cases)
• Loan is repaid when the homeowner sells, moves, or passes away

HECMs can be a helpful financial tool—but they are not one-size-fits-all.

Why Professional Guidance Matters

Reverse mortgages come with strict rules and long-term implications. That’s why working with experienced, ethical professionals is critical.

Important Warning:
Never trust unsolicited calls offering mortgage products.

Recent reports highlight a class action lawsuit alleging that some reverse mortgage companies charged illegal fees to older homeowners.

The Takeaway:

• Work only with trusted professionals
• Verify credentials
• Understand all fees before signing

What Is an HMBS?

A Home Equity Conversion Mortgage-Backed Security (HMBS) is an investment product tied to reverse mortgages.

In Simple Terms:

• HECMs are the loans
• HMBS are the investments backed by those loans

Recent Market Data:

• HMBS issuance reached $563 million in January 2026
• Up from December, but slightly below January 2025
• HECM endorsements rose 5% month-over-month
• Down 13.1% year-over-year

This suggests the reverse mortgage market is evolving, and headline numbers don’t tell the full story.

Good News: FHA Stability

The FHA reports that the HECM program is no longer a financial risk.

While this is encouraging, it does not eliminate the need for careful decision-making.

The Bigger Issue: Rising Property Taxes

One of the most pressing concerns is the impact of rising property taxes, especially on retirees.

The Problem:

• Home values are increasing
• Property taxes rise alongside them
• Many retirees are house-rich but cash-poor

The Result:
Some homeowners are being forced out of homes they’ve owned for decades due to rising tax burdens.

What This Means for Homeowners in Charlottesville

For local homeowners:

• Your home may be gaining value—but so are your expenses
• Long-term planning is more important than ever
• Financial tools like HECMs may help—but must be used wisely

Final Thoughts from Cynthia Hash

There are more financial tools available than ever—but also more risks and misinformation.

Whether you're exploring a reverse mortgage, planning your estate, or navigating rising costs:

• Work with trusted professionals
• Stay informed
• Plan ahead

Because in today’s market, it’s not just about owning a home—it’s about being able to keep it.