Reverse mortgages can be appropriate for certain elders in specific circumstances -- but they can also be very, very dangerous. They're like any other financial product -- the people selling them are selling them to benefit themselves, not you. Approach with Care!
Reverse mortgage ads are found on television, radio, in print, and on the internet, and many ads feature celebrity spokespeople discussing the benefits of reverse mortgages without mentioning risks. The Consumer Financial Protection Bureau looked closely at dozens of advertisements and met with older homeowners to learn about their impressions of reverse mortgage ads. Today, we’re releasing a consumer advisory and report on what we found.
Here are three things to remember when you see a reverse mortgage advertisement:
· A reverse mortgage is a home loan, not a government benefit.
· Reverse mortgage ads don’t always tell the whole story.
· Without a good plan, you could outlive your loan money
We found that reverse mortgage advertisements may leave older homeowners with the false impression that reverse mortgage loans are a risk-free solution to financial gaps in retirement.
Check out our report on reverse mortgage advertising to learn more:
Report
A closer look at reverse mortgage advertising
http://files.consumerfinance.gov/f/201506_cfpb_a-closer-look-at-reverse-mortgage-advertising.pdf
Blog
Consumer Advisory: Don’t be misled by reverse mortgage advertising
http://www.consumerfinance.gov/blog/consumer-advisory-dont-be-misled-by-reverse-mortgage-advertising/
Consumer Advisory pdf
Consumer Advisory: Don’t be misled by reverse mortgage advertising
http://files.consumerfinance.gov/f/201506_cfpb_consumer-advisory-dont-be-misled-by-reverse-mortgage-advertising.pdf
If you have questions about this report, please contact James Miner at james.miner@cfpb.gov
Thanks!
Naomi Karp, JD
Senior Policy Analyst
Office for Older Americans – Consumer Financial Protection Bureau
202-435-7954
naomi.karp@cfpb.gov
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