Now the Taxpayer will have to pick up the tab for failed reverse mortgages

[pommysmommy]

Originally Posted by KRAMERCAT

Taxpayers are being tapped to subsidize reverse mortgages for the first time. Usually, insurance premiums paid by borrowers have covered bailouts of mortgages by the fund. The payouts to lenders occur under certain circumstances, such as when the eventual sale of a borrower's home doesn't cover the money owed on the loan. Now the Department of Housing and Urban Development says that $798 million in taxpayer money must be budgeted in the next fiscal year to cover potential losses that won't be covered by the premiums.

Reverse mortgages: Consumer Reports investigates

That shouldn't come as a surprise to anyone.

[HappyTexan]

Our government bailed out BAD loans. How could anyone have believed Paulsen when he said we'd "profit" from them ? If they were such a good deal then the banks wouldn't have had to swap them for real dollars.

US taxpayers got scammed. We paid good dollars for crappy loans.