Reverse Mortgages Under Increased Scrutiny
Unscrupulous sales agents are popping up in the booming reverse mortgage industry. As a result, where reports of deceptive and high-pressure sales tactics are worrying lawmakers and consumer advocates.
Reverse mortgages are designed for homeowners, age 62 and older, to borrow against their home equity. The money goes unpaid until the home is sold or the borrower dies or permanently moves out. The older the borrower and the greater the value of the home, the more money that can be borrowed.
Reverse mortgages, if used properly, can provide cash to help seniors live more comfortably. The Senate on Dec. 14 passed bipartisan legislation that removes the cap on the number of reverse mortgage loans that the Federal Housing Administration can insure.
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