CFPB: Reverse Mortgage Ads Can Confuse More Than Inform

Advertisements touting reverse mortgages often leave older consumers confused about the loan terms and unaware of the risks, according to a new report from the Consumer Financial Protection Bureau. “Perhaps most concerning of all, the ads left the consumers believing that if they purchase a reverse mortgage loan, they will be able to rest assured that they can live in their homes and enjoy financial security for the rest of their lives,” CFPB Director Richard Cordray said in a teleconference. …

Surprise! Reverse Mortgages Are Very Confusing

A three-year examination of reverse mortgage complaints to the Consumer Financial Protection Bureau shows that borrowers often didn’t understand the terms of those loans, including how quickly their loan balances would go up and their home equity would fall, the bureau said in a new report. Reverse mortgages allow homeowners age 62 and older to tap into the equity in their homes. They’re different from home equity credit lines or home equity loans because a reverse mortgage generally is paid back only when the homeowner …

Oldest Americans Weathered the Recession Better Than Others

Many Americans are still reeling from the last recession, although the oldest among us weathered the economic decline better than other age groups. That’s according to a recent report by the Census Bureau that looked at how Americans ages 65 and up fared during and after the 2007-2009 recession. These older consumers were somewhat buffered by more conservative investment strategies as well as high homeownership and a resistance to squeezing all equity out of their property by refinancing. It wasn’t …

11 Things We Didn’t Know Last Week

News, discoveries and … fun 1. The bones of a seven-story-tall dinosaur, called the largest creature ever to walk the earth, were discovered in Argentina. (Learn more at NPR) 2. The outgoing Indian prime minister had 1.24 million Twitter followers before he reset the government account, making the new PM start over. (Learn more at Quartz) Honorable Outgoing PM Dr Manmohan Singh farewell speech to the nation Full Speech: http://t.co/Z7NrGabt1R pic.twitter.com/An6GyIlBRI – Yuva Desh (@yuvadesh) May 17, 2014 3. The residents of Paraguay are …

Rate Reset for Some Homeowners May Trigger Defaults

The home foreclosure crisis that swept through the nation during the Great Recession may not be over for thousands of troubled borrowers. Some homeowners who sought help from the government’s Home Affordable Modification Program (HAMP) are about to see their mortgage payments rise this year. In some cases, those payments could eventually go up by more than $1,000 a month, according to the Washington Post. The loan modification program lowered monthly mortgage interest rates for some 1.3 million at-risk homeowners …

To Avoid Shelter Skelter, Beware of Property Tax Reassessment Offers

For many homeowners, property tax bills are mailed in July or August. So now’s the time to watch out for an annual come-on that can ding your bank account: offers to help you pay less in property taxes by getting a property reassessment. Before you bite, know how you can get bitten. First, realize how these offers work: Private companies simply charge $200 or more for what you can do yourself, often for free – filing paperwork at the local …