Reverse Mortgages May Be ‘Subprime Revisited,’ Law Center Says (state, years)

[TuborgP]

The following is good food for thought and discussion if you want. It is from Bloomberg and there have been threads on the topic.

Reverse Mortgages May Be ‘Subprime Revisited,’ Law Center Says - Bloomberg.com
Some of the same U.S. lenders that helped drive the real estate boom with loans to home buyers who couldn’t afford the payments are now targeting seniors, the center said. Brokers, who are given financial incentives to sell the loans, may be making misleading claims to potential customers, according to a report released today by the Boston-based NCLC.

[mathjak107]

exactley what i was bringing up in the other thread discussion we had

[TuborgP]

Originally Posted by mathjak107

exactley what i was bringing up in the other thread discussion we had

Yes I remembered a number of the different issues being discussed. This seemed to be timely and was from a solid web site. I remember some of the comments and thoughts about life time income and speculation that perhaps people were thinking of annuities being bundled with the loan etc etc. Again why lots of different perspectives are good but online resources from credible sources can be even better.

[mathjak107]

Theres just a lack of fully understanding these complex products.
You saw how people had no clue how the lifetime payouts worked in the other thread.

[rainmand]

When the subprime market crashed, those people got into Reverse Mortgages, and lasted about 6 months. Subprime people want things to happen quickly, and talk fast, and don't have the consumers interest at heart. That was a few years ago, and those folks aren't in this industry anymore ... they're selling Forward Mortgages again, or Insurance.