Reverse mortgages

Reverse mortgage company portrayed itself as community-based non-profit to mislead seniors into reverse mortgage product; Attorney General Cuomo urges homeowners to be informed when exploring refinancing options

SYRACUSE, N.Y. (April 24, 2008) – New York Attorney General Andrew M. Cuomo today announced his office has stopped a Syracuse-area reverse mortgage lender from preying on seniors statewide through false advertising and portraying itself to be a local non-profit organization.

Elderly woman: Photo by borya (CC)    » read more »

January 24, 2008 -- TALLAHASSEE, FL – Florida Attorney General Bill McCollum today issued a consumer advisory warning Florida’s senior citizens about a mortgage-related scam that may target them directly. As he unveiled legislation this week to combat mortgage “foreclosure rescue” scams, the Attorney General also cautioned senior citizens about scams associated with reverse mortgages, a type of home equity loan frequently abused by con artists and scammers.    » read more »

December 14, 2007 -- WASHINGTON, D.C. – U.S. Senator Claire McCaskill filed legislation today aimed at protecting seniors from aggressive marketing and predatory lending amid the rapid growth of the reverse mortgage industry. The Reverse Mortgage Proceeds Protection Act would help to protect seniors by ensuring they receive independent counseling prior to signing up for a reverse mortgage and requiring that the U.S. Department of Housing and Urban Development (HUD) issue stronger regulations related to consumer protections. Senator Herb Kohl (D-WI), chairman of the U.S.    » read more »

December 12, 2007 -- WASHINGTON, D.C. – The U.S. Senate Special Committee on Aging held a hearing today to examine the rapid growth of reverse mortgages and hear from those most affected by the expanding industry: seniors. With the senior population soaring as baby boomers reach retirement age, the committee looked specifically at ways to ensure consumers are protected as they consider this type of loan.    » read more »

October 30, 2007 -- Senior citizens over the age of 62 whose homes carry little or no mortgage debt may receive offers for a specialized loan called a reverse mortgage. Under these arrangements, eligible homeowners are promised an up-front cash payout with no obligation to repay the loan. Even better, the sales pitch goes, seniors can live out the rest of their lives in their own homes – with no monthly mortgage – and have extra money to spend enjoying their retirement years.    » read more »