A weekend NPR segment, “Recent Mortgage Deals Protect Banks, Cut Senior Aid,” addressed budget cuts that will de-fund HUD counseling programs, causing seniors to pay for the services themselves.
The segment, which featured an interview with New York Times columnist Joe Nocera, also addressed foreclosure process reform efforts that would require a single point of contact for a person whose mortgage is in trouble, and would prevent a dual track of mortgage modification and foreclosure.
With regard to reverse mortgages, Nocera said, “It’s a really good innovative way to help people have a regular income late in life….But it also comes full of dangers. Will your house remain at the price it was? What happens if you run into trouble? Counseling is pretty important and it’s also mandatory.”
Housing and Urban Development loses $88 million for loan counseling, NPR said, which relative to the deficit seems like a small amount. With respect to the impact on reverse mortgage counseling, Nocera said, people may have to now pay for the counseling themselves.
Listen to the NPR segment.
Written by Elizabeth Ecker