A recent article from Bankrate noted that the “housing market bust correlated strongly with a sharp decline in reverse mortgage origination.” However, with federally insured programs due to make some changes, the product could experience a resurgence.

Data from the Federal Housing Administration (FHA) indicated a significant volume increase during the height of the housing market bubble and were touted as a way for retirees to convert their home equity into cash, but as home values dropped, so did the volume home equity conversion mortgages (HECMs).

The effectiveness of the upcoming FHA reforms in the event of another boom-and-bust cycle is unclear so far but the reverse mortgage product has an upside.

“There is certainly room for this market to expand somewhat as market conditions improve, if FHA’s reforms take hold,” said Stephen Malpezzi, a professor at the Wisconsin School of Business was quoted as saying in the Bankrate article. “There are about half a million HECMs outstanding, but there are roughly 25 million homeowner households with a head 62 or older.”