Home equity is an illiquid asset that can typically only be extracted through home sale or mortgaging the property. However, reverse mortgages provide a mechanism for senior households to withdraw equity from their home without home sale or monthly mortgage payments. The most prevalent form of reverse mortgage, comprising more than 95 percent of the market since the mid-2000s, is the U.S. Department of Housing and Urban Development’s (HUD) federally insured Home Equity Conversion Mortgage (HECM). The objective of the HECM program is to provide seniors with a vehicle to “supplement social security, meet unexpected medical expenses and make home improvements” (U.S. Department of Housing and Urban Development 2006). The…