A report published by Consumers Union on reverse mortgages earlier this week is based on dated information and intended to scare consumers and seniors according to the Coalition for Independent Seniors.
“Seniors should know that reverse mortgages are sound economic tools that allow them to leverage their own wealth to continue to support themselves and live in their homes longer,” said Jeff Lewis of the CFORIS. “The Consumers Union report does a disservice to seniors by repeating myths about the program. The reality is, the reverse mortgage program is government-backed and heavily regulated by FHA to protect consumers and their interests.”
The report uses 26 instances of questionable practices to prove its point, despite there being over 2000 reverse mortgage lenders nationwide according to CFORIS.
“We have a good product, seniors like it and it benefits the seniors, their families and society as a whole,” said Lewis. “Consumers Union didn’t talk with lenders or borrowers before issuing this report. If they had they’d hear what we hear from seniors – that the program has given them the financial independence they want and the ability to meet unexpected expenses and continue to live in their homes.”
Thair Phillips, President of RetireSafe, a 400,000-supporter strong national advocacy group for older Americans, believes that reverse mortgages are an important option for seniors.
“Having a financial option that allows seniors to remain in their homes is a godsend to our members who have obtained reverse mortgages in these troubled financial times,” he said. “Seniors don’t want to depend on the government but would rather use the equity they worked so hard to build up in their homes as a way to remain in their home and continue their older years in dignity.”