South Dakota Attorney General Marty Jackley’s office this week issued a consumer advisory on reverse mortgage offers, alerting consumers to be cautious when considering reverse mortgage options.
The alert was a proactive measure, a representative from Jackley’s office told RMD, rather than a direct response to consumer complaints or specific concerns raised with the Attorney General.
“It is something we have been thinking of for a while,” the spokeswoman told RMD. “It was more of a heads up.”
In announcing the alert, Attorney General Jackley stressed the need for a thorough research process.
“In the event a senior is considering a reverse mortgage, I am encouraging seniors to closely examine all requirements and to seek further assistance in making such a significant decision,” said Jackley. “Before entering into a reverse mortgage seniors should understand the types of reverse mortgages that are available, know the costs and fees associated with reverse mortgages, and understand any additional obligations for these mortgages.”
The advisory addresses several components of reverse mortgage research including work with a financial adviser, attending reverse mortgage counseling, understanding costs, fees and insurance and comparing different offers from different lenders.
Written by Elizabeth Ecker