Reverse Mortgage Scammers Being Driven Out of the Industry
November 03, 2009
Like cockroaches scattering when you turn on the lights, reverse mortgage scammers are running scared.
This migration is partly due to laws and lawmakers intent on preventing reverse mortgage scams, and perhaps more largely based on the ready availability of honest, comprehensive reverse mortgage information on the Internet.
Reverse Mortgage Protective Measures
The most popular form of reverse mortgage is called a Home Equity Conversion Mortgage, or HECM. This loan is sponsored by the federal government and is one of the most heavily regulated mortgages ever created. For the casual loan shark, it's not even worth the paperwork to try to perpetrate an HECM scam.
Meanwhile, state attorney generals stand ready to guard elderly citizens from the predations of unscrupulous lenders. For a state attorney general, nailing a reverse mortgage scammer is the best PR in the world.
Information Shines a Light
AARP has a whole section on its Web site about reverse mortgages. Many other sites offer information about reverse mortgages. Moreover, seniors are required to sit down with a housing counselor before accepting a reverse mortgage.
Scammers are discovering that there are quicker, easier ways to make a dishonest buck than selling reverse mortgages.