A National Public Radio segment Thursday gathered opinions from within and outside the reverse mortgage industry and set the record straight on several misconceptions. Titled “Reverse Mortgages: Proceed with Caution,” the segment, featured on NPR’s daily Kojo Nnamdi show, included interviews with experts as well as calls from listeners that sparked a lively discussion of reverse mortgage products.
Host Kojo Nnamdi posed questions to a panel from within and outside of the industry. Michael McCully, partner of New View Advisors; Jean Constantine-Davis, AARP Foundation Senior Attorney; and Nina Simon, of the Center for Responsible Lending.
The segment addresses issues including industry trends, fixed versus adjustable rate products, recent lawsuits filed by AARP concerning reverse mortgage lending, and advice from McCully as an industry advisor. Several calls from listeners span concerns regarding marketing to seniors, a happy reverse mortgage customer, and one lender who explains differences between the standard product and the HECM Saver.
“Are reverse mortgages still a good option if you are house rich and cash poor?” Nnamdi asks.
McCully provides a description of the product while the Center for Responsible Lending’s Simon says reverse mortgages are complex financial products and advises that borrowers obtain advice not from banks offering the products, but from those who are not ingrained in the industry. Constantine-Davis addresses questions about two lawsuits filed earlier this year regarding reverse mortgage borrowers.
From counseling to happy customers and bank exits, the segment provides a glimpse into the current world of reverse mortgages with a variety of perspective.
Listen to the segment here.
Written by Elizabeth Ecker