Some people are starting to spread the word that what happened with the subprime mortgage bust is bound to happen with reverse mortgages. While there are some concerns that predatory lending practices could create situations for certain seniors which are similar to those that affected subprime mortgage borrowers, the reality is that the bulk of these fears are bunk.
First of all, we are much more aware of the ways that we must protect ourselves from predatory lenders as a result of the subprime mortgage bust. Consumers as well as finance regulators are working to make sure that the same type of thing doesn't happen again.
Additionally, the way that a reverse mortgage works is different enough that the two types of mortgages can't reasonably be compared. Most seniors are happy with the way that a reverse mortgage works for them.
Learn more about this topic here.
Question of the Day: What fears do you have about the reverse mortgage market?
