Most mortgages in the United States are lent through private banks, but there is a government agency that oversees them – so what government agency oversees reverse mortgages?

The government agency that oversees reverse mortgages is the same one that oversees many traditional mortgages – the Federal Housing Administration. This agency is part of a larger agency within the United States' government known as the US Department of Housing and Urban Development – commonly abbreviated as HUD. While not all “forward” mortgages must go through HUD or FHA for approval or in order to get a good rate – all reverse mortgages do go through this agency.

It doesn't matter if your original mortgage was arranged through FHA or not – you can still be eligible for a FHA Home Equity Conversion Mortgage. This is the government's term for a reverse mortgage. The FHA itself does not give out the payments for your reverse mortgage, rather, they oversee many different banks and lenders that will be able to give you monthly payments based on your home's equity. This agency will help you to find a lender that will be responsible for payments, and who will hold your loan for repayment after your death (or permanent move from the home).

When looking at what government agency oversees reverse mortgages, the Federal Housing Administration is a very large entity indeed. The FHA helps people to get their first mortgages, often with little or no down payment. They also, through HUD, can help home-buyers to find low cost homes that are in need of repair – and help them to get a low cost loan in order to purchase these houses and refurbish them.

Working with reverse mortgages, HUD/FHA helps homeowners that are 62 years of age or older to get their home's equity paid to them in installments, as well as providing the homeowners with all of the pros and cons of getting a reverse mortgage. They will also provide credit counseling and mortgage counseling through HUD approved lenders, and work with mortgage holders on the best way to get them their money. If the homeowners meet the minimum requirements and their home does as well, then the mortgage will be approved.

The Federal Housing Administration is the answer to what government agency oversees reverse mortgages, and they are there to try to help out older homeowners in need of money and income. Through FHA, a homeowner can decide whether a reverse mortgage is right for them.