Earlier this month, the Federal National Mortgage Association (also known as Fannie Mae or FNMA) switched to "live pricing" on their reverse mortgage business. In a live pricing arrangement, the interest rates and allowable lender profit margins that are offered are updated daily instead of on a weekly basis.

Since Fannie Mae has been acting as the sole buyer of reverse mortgages over the last year, this change essentially catches the reverse mortgage market up to the traditional or "forward" mortgage market, which has used live pricing for years. The effect on seniors has yet to be determined, with the possibility of higher costs and more questionable sales practices being feared.

For more information on reverse mortgages, check out the following articles:

• Reverse Mortgage Basics
• Disadvantages of a Reverse Mortgage
• Using a Reverse Mortgage Calculator