Consumer Reports explains that
A report today by the Consumer Financial Protection Bureau shows that an increasing number of homeowners are taking out reverse mortgages at a younger age, putting them at risk of using up the funds prematurely. The financial watchdog also announced plans to collect input from the public on rules to rein in reverse mortgage abuses. The CFPB report found that half of reverse mortgage borrowers are in their 60s, and that 73 percent of all borrowers took all or almost all of their available funds up front. Overall, almost 10 percent of all reverse mortgage borrowers are at risk of foreclosure. Non-borrowing spouses are especially vulnerable.
Here is the CFPB's report, which was mandated by the Dodd-Frank financial reform legislation. Go here for the CFPB's 4-page brochure on reverse mortgages. More information can be found here. HT to Craig Briskin.
An age proof must be demanded from every mortgage seeker before providing him the plan as this will reduce the risk to a large extent
Posted by: Mortgage California | Saturday, July 14, 2012 at 07:21 AM