CFPB: 3 tips when taking a reverse mortgage
How to protect families of reverse mortgage borrowerers
Reverse mortgages allow homeowners, 62, and older, to borrow against the accrued equity in their homes, but according to the Consumer Financial Protection Bureau’s latest report, they’ve received many complaints from consumers who have experienced problems with reverse mortgages.
Reverse mortgages typically can help some older homeowners meet financial needs in retirement, however it has a tendency to leave a tough situation for the borrowers family.
The CFPB looked at 1,200 reverse mortgage complaints received from when the bureau started taking complaints, on Dec. 1, 2011, and Dec. 31, 2014. Reverse mortgage complaints comprised about 1% of all mortgage complaints, by all ages, during this timeframe.
Although reverse mortgages are only available to people over the age of 62, only about 42% of the complaints were from consumers who described themselves as 62 or older. Instead most of the complaints were the younger spouses or family members of borrowers.
Due to the complaints that the CFPB has received, they outlined three things borrowers and their loved ones should do if they have a reverse mortgage.