The state of Rhode Island is doing its part to make reverse mortgage loans safer for seniors. The governor has just signed a new law which strengthens the requirements for reverse mortgage lenders in order to make sure that the people who are giving out reverse home mortgage loans are people who are trained to do so and who are providing legitimate loans.
The new reverse mortgage law specifically requires that lenders must disclose all of the fees that are included in the loan. The reverse mortgage loan comes with a high amount of fees in comparison with traditional mortgages, something that not all seniors are aware of.
Some seniors would opt not to get the loan if they realized that they were paying so much in fees (although many would still get the loan) so it became necessary to require this type of disclosure in order to allow seniors interested in reverse mortgage loans to make fully informed decisions about the reverse home mortgage.
Question of the Day: Will a large percentage of seniors refuse reverse mortgage loans after full disclosure of fees is made?
