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Reverse Mortgage Scammers Being Driven Out of the Industry

November 03, 2009

By Andrew Freiburghouse | Money Rates Columnist

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.

Your responses to ‘Reverse Mortgage Scammers Being Driven Out of the Industry’

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reverse mortgage lenders

4 November 2009 at 8:17 pm

re: Reverse Mortgages - Any way you look at it, the potential pitfalls can be avoided with careful planning, education and informed decision making. - All Reverse

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