Reverse Mortgage Fees still unpredictable
Although competition is big for the senior reverse mortgage industry, there are still companies that are finding ways to squeeze more fees from their senior clientèle. I strongly believe companies that are looking to corner the market such as Bank of America and their soon to be acquired subsidiary Countrywide Home Loans, will find their numbers higher as they look to constantly lower rates in an effort to make their money from servicing and creating banking relationships. The Chicago Tribune, writes that
A reverse mortgage can be a financial lifeline, but consumer advocates are worried that some people are taking them out with too many strings attached.
Some lenders inappropriately push older homeowners to the products or sell them additional high-cost annuities, a new AARP survey claims. And some experts say there may be potential conflicts of interest between lenders and counselors providing mandated consumer education on the mortgages.
Proposed legislation would provide more protections, but experts say it is important to study fees and terms.
“Costs seem to be the real problem” keeping more homeowners from getting into reverse mortgages, said Bronwyn Belling, coordinator for the AARP Foundation’s Reverse Mortgage Education Project. Full Story.
Written by charles dennis on February 3rd, 2008 with
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