reverse mortgages

AARP Sues to Protect Widowed Homeowners With Reverse Mortgages

Posted on 03/4/2014 by |Legal Grounds | Comments

Bulletin TodayAt the time AARP took up their cause, Robert Bennett of Annapolis, Md., and Leila Joseph of Brooklyn, N.Y., had several things in common. They were older Americans. They were widowed. They were homeowners. And they both faced foreclosure and eviction on reverse mortgage loans. So when AARP won a big lawsuit on their behalf against the U.S. Department of Housing and Urban Development (HUD) several months ago, it was great news. Now, AARP Foundation Litigation has filed a class-action …

Reverse Mortgage Changes Outlined

Posted on 02/13/2013 by |Money and Work | Comments

Bulletin Today | Money & SavingsMulling over the prospect of getting a reverse mortgage? Read on. You just might find that big changes to the program make these loans less appealing. Assistant Secretary for Housing Carol Galante says the Federal Housing Administration is taking “aggressive action” to shore up its future after the housing meltdown left it in financial straits. Projected losses for the nation’s reverse mortgage program was $2.8 billion as of last year, she said in testimony before the House Financial Services Committee …

Big Changes Coming to Reverse Mortgages

Posted on 01/8/2013 by |Money and Work | Comments

Bulletin TodayMost reverse mortgage borrowers choose to tap their home equity in a lump sum payment provided by the lender, rather than as a line of credit. But that offering is about to change. According to a spokesman for the U.S. Department of Housing and Urban Development, lenders will stop providing huge lump sums that equal all or most of the equity in a borrower’s home. Instead, new guidelines about to be released will require borrowers to set aside a portion …

Reverse Mortgages Are Proliferating, but It’s Wise to Proceed with Caution

Posted on 10/15/2012 by |Money and Work | Comments

Bulletin Today | Money & SavingsReverse mortgages are growing in popularity as older adults tap their home equity to help them maintain their standard of living in retirement. But these loans come with potentially serious risks and AARP has been working for years to educate older homeowners on reverse mortgages, so they don’t get into trouble. The New York Times reported Monday about some of the more extreme problems that people can face after taking on a reverse mortgage, including foreclosure. The cases involved seniors whose …

The Takeaway: Americans Are Misusing Reverse Mortgages, Says Consumer Agency

Posted on 06/28/2012 by |Brooklyn, NY | Comments

Bulletin TodayReverse mortgages are not being used as Congress intended, according to a new report from the government watchdog agency Consumer Financial Protection Bureau (CFPB). Reverse mortgages were created to provide an income options for retirees. But these mortgages are increasingly being taken out by younger borrowers, which could decrease long-term retirement security. Borrowers also tend to take lump-sum payments that can be used up quickly.

Reverse Mortgage Question Answered

Posted on 11/16/2009 by |Archived Contributor | Comments

Money & SavingsThere is plenty of useful information for you in the Wall Street Journal’s online “Ask Encore” page from this weekend. First, AARP provides the answer to a reader’s question on reverse mortgages: why aren’t the interest charges and fees on reverse mortgages tax deductible? According to the answer from AARP, it’s because with a reverse mortgage, the “actual payment” doesn’t happen until the borrower sells their home or dies – so the borrower cannot claim a tax deduction until that …