A series of three video reports addressing reverse mortgage issues was released by AARP’s Inside E Street, and was posted on AARP’s website this week.
The first in the series of videos is a segment titled “Loan of Last Resort: Is a Reverse Mortgage For You?” that includes two interviews with reverse mortgage borrowers: One, a success story, and the other, featuring one of three plaintiffs in the pending lawsuit against the Department of Housing and Urban Development that was filed earlier this year.
While the AARP video shows that a reverse mortgage can be a helpful tool for the right borrower, it also mentions “high fees,” “complicated rules,” and notes some of the the issues of the HUD lawsuit, including the non-recourse guidance that was changed in 2008 and was rescinded earlier this year.
In the case of one plaintiff in the lawsuit against HUD who faced foreclosure upon the death of his wife—the only borrower on title—AARP explains, “lenders sometimes encourage only the elder member of a couple to put his or her name on the deed, because the borrower is eligible for a bigger loan.”
View the AARP Inside E Street video.
Written by Elizabeth Ecker