Federal Housing Administration which insures most  reverse mortgages suffered loan losses, due to market factors and borrower misuse of the program.   The lending formulas are complex, most borrowers will now qualify for a lower principal limit (borrowing power) but more in up-front premiums (the cost of the reverse mortgage).  To encourage borrowers to use for long-term planning (instead of crisis management), borrowers will face new limits on the amount of money that can be taken out at closing and during the 1st year  of the loan.  MORE TO COME