Baby Boomers are “exhausted and emotionally frustrated with Wall Street.” As a result, “they are doing nothing and will not be able to retire,” Frank Troise from the company SoHo Asset Management told CNBC today.

Reverse mortgages have long been considered one of the most expensive ways to extract cash from your house. But that is changing as some of the country’s biggest reverse-mortgage lenders are slicing closing costs—helping even some affluent homeowners who want to generate additional income.

Reverse mortgages typically allow homeowners who are 62 and older to borrow against their home equity without having to repay the money until the home is sold or until the borrower dies or moves out.

While real estate remains in the doldrums, many older individuals own homes that are still worth plenty. Some of these folks may be “house rich” but “cash poor.”

New ‘jumbos’ are giving retirees the cash they need to stay in their houses

The collapse of the real-estate market is teaching a painful lesson to many seniors about the risks of carrying debt into retirement.

As Congress returns from its break, it will soon have to vote on the Appropriations Act 2010. This Act involves the subsidization of the reverse mortgage program of HUD, called the Home Equity Conversion Mortgage (HECM). Also at stake is the lending limit. At present, Congress is divided as to what it may do.

Pros of reverse mortgages

* Allows the homeowner to stay in the home permanently.
* Pays off existing mortgages on the home.
* Simple to qualify for because credit score and income are not considered.

The advantages for seniors, their families, and the government of a robust reverse mortgage program are clear. Congress has expressed great interest in the program, particularly its potential to help seniors afford long-term care, thereby helping to reduce the millions of dollars in eventual federal expenditures for seniors’ health care needs.

When given the opportunity, criminals will target whom they perceive as the weakest among us. And that notion could become even more apparent as Utah and the nation cope with the bursting of the real estate and economic bubbles.