For someone looking for a hedge against property value risk, a senior may not need to look any further than a Federal Housing Administration (FHA)-sponsored Home Equity Conversion Mortgage (HECM) loan. This is according to Jack Guttentag, aka the “Mortgage Professor,” in a new column published by Forbes.

Tied to the motivation for someone to become a homeowner is the promise of building home equity, a pivotal measurement of a person’s wealth. The owner of the home, however, has little control over the market factors which can affect the property value of the home, and home price appreciation has further variance based on something like geography, Guttentag says.

“A homeowner reaching 62 can begin converting home equity into spendable funds by taking out a HECM

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