In recapping a New York Times article this week on reverse mortgages, CBS News’ Gayle King discussed default rates among reverse mortgage borrowers as translating to more seniors getting pushed out of their homes on its CBS This Morning show.
Lenders are targeting older Americans by promising free money without explaining the risk, according to federal and state regulators, CBS said. The segment follows a front page NY Times article that outlines the risks associated with reverse mortgages, citing a Consumer Financial Protection Bureau industry report.
The default rate reached its highest level to date at about 9.5% of the loans, up 7% compared to 10 years ago, King noted.
Click here to watch the segment.
Written by Alyssa Gerace