Fox News Already a SOPA Victim with Incorrect Reverse Mortgage “Facts”?

NewImageJust because Wikipedia’s blacked out today (in protest of the Stop Online Piracy Act) doesn’t give Fox Business News an excuse to not get its reverse mortgage facts straight, as a recent article states that eligible homeowners can receive up to the value of their home in reverse mortgage proceeds.

Reverse mortgages allow homeowners who have reached age 62 or older to draw down on their home’s equity in exchange for cash. For instance, if your house is worth $250,000 you can get up to $250,000 either as a line of credit, all in a lump sum or via monthly payments.”

The article, which seeks to answer the headline’s question of “Who Should Do a Reverse Mortgage?”, says the loan is a possible solution for retirees whose nest eggs have been “rocked” by the economic storm.

Advertisement

Making sure that a reverse mortgage is the right move for a borrower is important, the article continues.

“What do you need the money for and when do you need it and are their other options worth considering,” are things borrowers should think about, Fox quotes NRMLA president Peter Bell as saying. “A lot of seniors do have a need because they have peaks and troughs when they need cash and sometimes they have to liquidate investments at an inopportune time.”

Fox Business also reminds prospective borrowers that even though their home will be “paying” them, they’re still responsible for keeping up with taxes and insurance related to the house.

The incorrect facts (including the misspelling of Bell’s last name) may mean the news outlet is one of the first casualties of SOPA, with many different websites (such as the English Wikipedia page) blacking out their pages today in protest of the bill.

Read the full article here.

Written by Alyssa Gerace

Join the Conversation (3)

see all

This is a professional community. Please use discretion when posting a comment.

  • I will let others deal with how a reverse mortgage is not a “RESERVE mortgage” and how FHA is not the Federal Housing AUTHORITY.
     
    What bothers me is what Mr. Smith supposedly said.  Again the reporter got so much wrong, what is attributed to Mr. Smith must be questioned as actually coming from him.  The rest of this comment will attack the statements, not Mr. Smith.
     
    One of the zaniest statements I have read since coming into the industry is:  “A reverse loan really should be part of every senior’s plan.  It doesn’t mean it has to be the program used.”  What in the world does that mean?
     
    Then here are some insulting words for the majority of our customers:  “The industry has been exclusively working in the needs based bucket….”  Besides being false, it is demeaning and absolutely unnecessary.
     
    “…reverse mortgages should be a tool for every senior, even those who aren’t in desperate need of cash.”  These words should be stated by an actual financial planner not by anyone in our industry.  Since when are we an authority on cash management when we have supposedly been “exclusively working in the needs based bucket.”
     
    If Mr. Smith said these words, no words can be strong enough to condemn this message.  If the statements are true, One Reverse should move Mr. Smith to the forward side of their business or sanction him and not allow him to speak out to the press on behalf of the industry or its company ever again.
     
    When asked by the press for his reaction to what the COO said that morning about most of those laid off that morning as being little more than deadwood at the company, a CEO is alleged to have said:  “This is the only time I have lost my breakfast before even getting into the office.”  I hope all of senior management at One Reverse has similar sentiments to these statements whether made by Mr. Smith are not.

  • This is not the first time FOX News has misquoted the facts about reverse mortgages. In fact they have had their legal counselor on in the past that completely distorted the facts about reverse mortgages and there has been other occurrences.
     
     
    Each time they have been challenged, they have either denied to comment or denied a debate challenge. I know, I have challenged them in the past to have a rebuttal session on air. They did not have the courtesy to even reply! This is not right and FOX News should be made accountable for their actions! They have a very large senior audience.John A.Smaldone 
    John A.Smaldone 

  • Hi John,

    Fox not checking facts? I’m shocked, I tell you, Shocked. 

    Sarcasm aside, it seems to demonstrate Churchill’s observation that a lie makes it halfway round the world before the truth even gets its pants on, and Churchill wasn’t even talking about a broadcast news operation. Thanks for your efforts to get their attention.

string(113) "https://reversemortgagedaily.com/2012/01/18/fox-news-already-a-sopa-victim-with-incorrect-reverse-mortgage-facts/"

Share your opinion

[wpli_login_link redirect="https://reversemortgagedaily.com/2012/01/18/fox-news-already-a-sopa-victim-with-incorrect-reverse-mortgage-facts/"]