Seniors Get HUD Counseling to Ward off the Wolves
From a dollars and sense perspective, built up home equity is the results of years of making payments and from the natural appreciation of the home market.
If there are no other financial means, the borrower can use the home equity as a source of funds to solve financial problems. In fact, the reverse mortgage was originally created with this intention.
The reverse mortgage is not the perfect financial answer for every financial problem for the borrower.
As a possible conflict of interest, it is marketed by people just like me, who make money only when they get a senior borrower a reverse mortgage; they don't make money by talking the senior out of it.
Being a loan officer, I hold most of my colleagues in esteem. I know the majority will tell the truth and give an honest assessment supported by all available knowledge.
That being said a certain minority resides in this business (as with any business), made up of unethical individuals willing to ignore anything associated with the golden rule to get what they want.
I formerly worked in the copier business, and my company (which shall remain nameless) had a saying for the sales people: Whatever it takes. They really meant it too. Do whatever you have to do to make a sale.
In the reverse mortgage business, some people feel that way too, but stay confident. The loan officer is not your only point of contact to help you make an informed decision.
Federal law requires serious parties to have a counseling session with a neutral counselor of reverse mortgages, approved by HUD, before continuing with the transaction.
This is a major stopgap for those being talked into a reverse mortgage who could otherwise solve the financial obstacle in some other cheaper manner. If the counselor is worth his salt he should be able to spot a bad deal and give the would-be borrower better advice.
Someone is always lying is wait to trick or take advantage of seniors, and this is one way to greatly avoid that possibility.
If there are no other financial means, the borrower can use the home equity as a source of funds to solve financial problems. In fact, the reverse mortgage was originally created with this intention.
The reverse mortgage is not the perfect financial answer for every financial problem for the borrower.
As a possible conflict of interest, it is marketed by people just like me, who make money only when they get a senior borrower a reverse mortgage; they don't make money by talking the senior out of it.
Being a loan officer, I hold most of my colleagues in esteem. I know the majority will tell the truth and give an honest assessment supported by all available knowledge.
That being said a certain minority resides in this business (as with any business), made up of unethical individuals willing to ignore anything associated with the golden rule to get what they want.
I formerly worked in the copier business, and my company (which shall remain nameless) had a saying for the sales people: Whatever it takes. They really meant it too. Do whatever you have to do to make a sale.
In the reverse mortgage business, some people feel that way too, but stay confident. The loan officer is not your only point of contact to help you make an informed decision.
Federal law requires serious parties to have a counseling session with a neutral counselor of reverse mortgages, approved by HUD, before continuing with the transaction.
This is a major stopgap for those being talked into a reverse mortgage who could otherwise solve the financial obstacle in some other cheaper manner. If the counselor is worth his salt he should be able to spot a bad deal and give the would-be borrower better advice.
Someone is always lying is wait to trick or take advantage of seniors, and this is one way to greatly avoid that possibility.
About the Author:
Get comprehensive guide to the California reverse mortgage make it over to this website. For all the skinny, go the California reverse mortgage fact sheet.
posted by Debt Consolidation Loan at
8:41 PM
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