Senior Citizen's Guide to Cleveland 2013 Vol. 1 - page 18

16
Say You Saw It in the Senior Citizen’s Guide to Cleveland
Counselors are in cahoots with the Lenders and only there
to make sure you take out a reverse mortgage.
Untrue. Counselors must be independent and are
tested and certified by HUD. A counselor’s responsibility
is to the borrower, not the lender.
Reverse mortgages are expensive.
Reverse mortgage fees are similar to those for any
other mortgage product. The one additional fee is the
Mortgage Insurance Premium, which is paid to the
government mortgage insurance fund to protect you in
the event the loan balance grows larger than the value
of your home.
The HECM Saver has practically eliminated the
upfront MIP. Other traditional fees are also sometimes
waived by the lender.
Advertising is misleading.
Historically, there has occasionally been misleading
advertising: ads that tout reverse mortgages as a
“government sponsored program,” which they are not.
Ads that contain an artificial check. Ads that falsely
promise you no payments for life, when you need to
pay your taxes and insurance. But the Federal Trade
Commission, the Federal Housing Administration
and the Federal Reserve Board have all passed
regulations forbidding specific misleading language
and presentation. NRMLA also specifies advertising
restrictions in its Code of Ethics and Professional
Responsibility. Companies that run misleading ads are
subject to various forms of punishment. If you see or
receive a misleading or false ad, please report it to
reversemortgage.org
Article provided by Ray Chartier, NMLS # 747855, Certified Reverse
Mortgage Professional at Dollar Bank. Source: National Reverse Mortgage
Lenders Association.
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