National Public Radio aired Homeowners Should Examine Reverse Mortgages during its Morning Edition late last week. Wendy Kaufman reports that many people are considering these complex loans to help with everyday expenses.
Kaufman talks with one man who isn’t using the reverse mortgage for his own needs, but his 99 year old father who needs help to move into an assisted living facility. During the segment, they talk with a reverse mortgage counselor who doesn’t seem to be a big fan of reverse mortgages because she thinks they’re extremely expensive and means they will have less to leave to leave to their children.
In regards to the fees associated with HECMs, Meg Burns, a Senior Official with FHA said, “We have some caps on the fees and charges and we’re constantly looking at the fees and charges that are assed to the consumer”.
Even though the loans are regulated, Kaufman says consumer advocates are worried that people will find ways to exploit seniors by pressuring them to invest the money they receive from reverse mortgages. You can listen to the segment at the link below and they posted a Q&A here.