| I just finished reading an article about a network news | | | | known as the tenure option or payments for life, she |
| program that did a negative report on reverse | | | | would have received those payments for the rest of |
| mortgages, citing an incident in Los Angeles of a senior | | | | her life so long as she continued to occupy the |
| borrower who was talked into buying annuities that did | | | | property and the bank would never then take the |
| not mature until the year 2033 without a substantial | | | | home when the senior outlived the equity as the report |
| penalty. I saw the actual Nightly News piece with Tom | | | | leads the listener to believe. |
| Costello. I was very concerned with the piece because | | | | I think it is very important for seniors to not only go |
| I saw that they interviewed a woman identified as | | | | through the required counseling, but also to enlist the |
| Robin Talbert with the AARP. | | | | assistance of their loved ones or trusted financial |
| I have to believe that only part of Ms. Talbert's | | | | advisors whenever available. In this piece, the borrower |
| comments were represented in the piece on the | | | | said she didn't really even need the money, she was |
| program as her comments stated "We're all living | | | | doing just fine without it. Her daughter was with her |
| longer and you don't want to outlive that equity in your | | | | during the television interview and maybe if she had |
| home to which the piece cut away immediately to Mr. | | | | been with her during the reverse mortgage process, |
| Costello who added Because the bank could then | | | | she could have helped her to keep from getting the |
| take the home. Ms. Talbert is absolutely correct, and | | | | loan in the beginning. Another piece of advice, don't |
| the AARP champions all things for seniors, but they | | | | ever go into the process with someone who is only |
| are extremely aware of how reverse mortgages | | | | looking to sell you another product or service. |
| operate and Mr. Costello's remarks are done in a way | | | | If you don't need a reverse mortgage and someone is |
| to mischaracterize reverse mortgages. | | | | trying to sell you one so that you can buy something |
| This is the type of misinformation and misreporting that | | | | else, or you do need one for living expenses and then |
| we have been running into for several years now. | | | | someone tries to tell you that you should put the |
| While I do not know all of the borrower's | | | | money into something else instead, find a reverse |
| circumstances in this particular situation and I always | | | | mortgage specialist who is only looking to help you fulfill |
| get extremely angry when I hear of any mortgage | | | | your reverse mortgage needs. Many people have |
| professionals who do not keep the borrower's best | | | | used reverse mortgages as retirement tools but make |
| interests at heart, it is not the Reverse Mortgage that | | | | sure that your use of your funds is from your careful |
| is the rip off here, it was the end use of the funds. | | | | plan and decisions, not from someone elses |
| The notion that the bank will take the borrower's home | | | | salesmanship. |
| when her equity is gone is just plain wrong and bad | | | | Reverse Mortgages can be a very viable retirement |
| reporting. The whole idea behind the reverse mortgage | | | | tool and I've seen them help many senior borrowers. |
| and one of the reasons the borrowers pay mortgage | | | | Like almost anything, they can be abused but if you |
| insurance is that no matter what happens to the equity, | | | | take the time to research the products and the people |
| the borrower will never make another house payment | | | | with whom you are working, the reverse mortgage |
| and the borrower or the borrower's heirs will never | | | | can be the difference to many seniors of staying in |
| owe more than the property is worth, regardless of | | | | their homes or having to leave; between barely |
| what the equity position does. The loan is set up so | | | | surviving and aging in grace and dignity. |
| that you own your property, not the bank. | | | | I would hate to see a senior borrower avoid this viable |
| If the Nightly News or Mr. Costello had researched | | | | option that may be badly needed due to bad or partial |
| reverse mortgages more thoroughly, they would have | | | | reporting. |
| learned that if the borrower had chosen what is | | | | |