A standard for seniors
San Francisco Chronicle, July 17th, 2009
It's hard to believe, but there's one section of the housing market
that's going like gangbusters: the reverse mortgage industry, aimed at
senior citizens.
Responsible reverse mortgages offer a wonderful opportunity to cash-strapped seniors.
By allowing seniors to tap into their home equity without requiring
them to sell their homes, the loans give families greater flexibility
during hard times like these. It's no wonder that the market for these
loans is exploding: The Government National Mortgage Association
announced a record of $590 million worth of reverse mortgage loans in
June, shattering the previous record set just a month earlier of $262
million.
But the key word there is "responsible," and state Sen. Lois Wolk,
D-Davis, noticed that not every lender was behaving responsibly. Just
as prime-rate borrowers were sometimes sold subprime loans, some senior
borrowers have found themselves trapped in loans with mysterious,
onerous terms that were never right for them in the first place. Her
bill, SB660, would require any lender, broker or other financial entity
recommending the purchase of a reverse mortgage to a senior to behave
with "honesty, good faith and fair dealing." It's the same sensible
standard that applies to insurance products for seniors - and it works.
Read more of this article.
About Reverse Mortgages: Learn all about reverse mortgages at NewRetirement.com
Professional Financial Advisors: Find out what a financial advisor can do for you at NewRetirement.com.