Senator Wants Look At Reverse Mortgage Claims
Sen Claire McCaskill(D-MO), the author of S. 2490 — the Reverse Mortgage Proceeds Protection Act — a bill that would end the “marketing or sale of an annuity as a condition of obtaining any home equity conversion mortgage” — has asked Missouri Attorney General Jay Nixon to look into the way reverse mortgages are marketed in her home state, specifically alleged claims that reverse mortgages are a “new government program” and that they are a government “benefit” or “entitlement.”
The release by McCaskill, posted in part below, raises two points:
First, what’s not good for potential mortgage borrowers in Missouri, if that’s the case, is unlikely to be good for reverse mortgage borrowers anywhere.
Second, if allegedly unfair claims are being sent through the mails than perhaps postal inspectors are the right folks to examine the matter.
McCaskill Asks Nixon to Investigate Inappropriate Marketing of Reverse Mortgages to Missouri Seniors
WASHINGTON, D.C. – When your parents or grandparents were just starting out they proudly worked hard, saved-up and bought a home. But today, they are older, money sometimes is tight and they have become a prime targets for aggressive and misleading marketing tactics, including recent mailers to Missouri seniors promoting reverse mortgages, a so-called “new government program.”
According to the mailer, this “program” will allow them to get cash from their home’s equity to pay bills, make repairs on their home, and enhance their lifestyle. What the advertisement doesn’t tell seniors is that reverse mortgages are extremely expensive loans and reverse mortgage salespeople have been known to take advantage of trusting seniors. Today, U.S. Senator Claire McCaskill asked Missouri Attorney General Jay Nixon to investigate abusive marketing tactics that are being used to mislead seniors into signing over the equity on the only valuable asset they own – their home.
...
