Seniors Struggle to Understand Reverse Mortgages

A recent study showed that seniors are often misled by advertisements promoting reverse mortgage products. Industry regulators are hoping to fix that. Reverse mortgages (also known as home equity conversion mortgages, or HECMs) are financial instruments that allow seniors aged 62 and older to borrow money against their existing home equity. But research by the Consumer Financial Protection Bureau has revealed that many of these seniors fail to grasp the fact that reverse mortgages are loans and that the lenders who provide them must eventually be repaid. On today’s episode of Big Money Real Estate, I interview Peter Bell, president and CEO of the National Reverse Mortgage Lenders Association, about some of the changes being implemented by the Department of Housing and Urban Development to better educate and protect consumers who apply for reverse mortgages. So watch this video to learn what new policies are affecting the reverse mortgage industry and to get a better sense of whether a home equity conversion mortgage could be right for you or someone you know. If you haven’t already, be sure subscribe to my YouTube channel for the latest real estate tips and news: http://www.youtube.com/subscription_center?add_user=expertrealestatetips And pick up my Intentional Investor Series on thinkglinkstore.com to learn everything you need to know to become a successful investor in real estate: http://thinkglinkstore.com/collections/frontpage/products/the-intentional-investor-complete-series Looking for more of my real estate and personal finance tips? Read my blog: http://thinkglink.com See my tweets: http://www.twitter.com/glink Follow me on Facebook: http://www.facebook.com/ilyceglink