Wells Fargo Stops Reverse Mortgage Loans Wells Fargo Home Mortgage announced that it will stop taking applications for new reverse mortgage loans by the end of the month due to the unpredictable nature of home values.  Reverse mortgages generally are sold to those over age 62 who want to tap into their home equity to pay for personal expenses like medical bills. Reverse mortgages don't have to be repaid until the home owner sells the property or passes away, which is how it differs from home equity loans.  The company will continue to service customers who already have existing reverse mortgages, but will no longer take new applications as of June 30.  Wells Fargo joins a growing number of banks that are getting out of the reverse mortgage origination business due to the sluggish real estate market, which has made it more difficult for banks to determine home values and how much they should lend in the reverse mortgages. Bank of America announced in February that it also would stop processing new reverse mortgage loans.  Source: "Wells Fargo Home Mortgages Halts Making Reverse Mortgages, Cites 'Unpredictable' Home Values," The Associated Press (June 16, 2011) I say good bye, adios, so long, far well and not sad to see you go to reverse mortgages and the banks who have preyed upon the desperate and sometimes Naive home owners. This is probably the only upside to the collapse of the housing market. I personally have no sympathy for the big banks who invented but another way to prey upon the elderly. I hope these Banks loose every last dime on every reverse mortgage they originated. Maybe next time they will think twice. If you see an upside or a positive to reverse mortgage I WOULD LOVE to hear about it, feel free to post