Groups across the nation are working hard to make reverse mortgage loans safer for the seniors who need them. Lawyers, legislators and consumer advocacy groups are pushing for changes in reverse mortgage monitoring that will make it more difficult for predatory lenders to take advantage of seniors and this will make it more likely that seniors can get good loans when turning to reverse mortgage lending as a solution to their financial problems. However, not all of the changes actually make things better for seniors all around.
For example, Washington State has just passed new laws that "increase lender licensing requirements and scrutinize all negative amortization loans". It is believed by many that this has a negative impact on the reverse mortgage market in this area. Basically, it will be harder for lenders to qualify to offer reverse mortgage loans because of the issues surrounding the new negative ammortization loan rules. Lenders who had previously been approved to offer these loans now may not qualify wihch reduces the loan options for seniors in the region.
Learn more about this complex issue here.
Question of the Day: Should we strengthen reverse mortgage lending requirements to the point where it may be difficult for seniors to get these loans if we believe that the tighter requirements will keep seniors safe from reverse mortgage harm?
