AARP’s Sheilah Kast covered reverse mortgages in a 30 minutes session for Inside E Street on Retirement Living TV. The segment includes an interview with Illinois Rep. Judy Biggert who said reverse mortgages are “a great financial tool”.
Kast also interviewed Massachusetts Rep. Barney Frank who is clearly behind the product and said that, “I’ve been a strong supporter of reverse mortgages, we improved it, expanded it, we did some protection against people being defrauded”.
Frank also pointed out that until recently, reverse mortgages have always received a positive score from the Congressional Budget Office, meaning that the more reverse mortgages the federal government insured the more money it would make.
Also in the interview, Frank addresses the comments from the Comptroller of the Currency’s John Dugans comment that reverse mortgages could be the next subprime. You can watch the video below.