Despite complaints from Consumer Reports about reverse mortgages, none have been reported in the Lone Star State according to the Texas Department of Savings and Mortgage Lending.
Chris Schneider, spokesperson for the department told the Fort Worth Star Telegram it has had a few inquiries, but no official complaints. “If the public has a concern, they can check with us to make sure the broker is licensed and legitimate,” he said.
Consumers can file a complaint and it will be investigated, but so far the department said it has no evidence of improper sales tactics in on-site visits or reviews of mortgage brokers’ records, Schneider said.
Norma Garcia, publisher of Consumer Reports told the paper that the reverse mortgage marketplace is seeing trouble in other parts of the country, which could show up in Texas soon.
“Nationally, these loans have exploded in the past few years,” Garcia said. “Many seniors have paid a mortgage or several mortgages in their lifetime, but this is a very different product. We caution people to take extra steps, meet with counselors and other professionals to determine if this is best product for you.”
Look before you leap: A reverse mortgage isn’t free money