In a recent post, we wrote about a new report by the Consumer Financial Protection Bureau, which is concerned that seniors may be confused or unclear what they're getting into with a reverse mortgage.
That scrutiny prompted the industry group, the National Reverse Mortgage Lenders Association, to announce a "Borrow with Confidence" campaign to more fully explain how a reverse mortgage works. It created Your Road Map to a Reverse Mortgage.
Reverse mortgages, through which financially stressed homeowners over age 62 can stop making mortgage payments and pull equity out of their homes, aren't for everyone, the NRMLA notes.
The lenders group says it is "aggressively trying to help seniors avoid short-sighted or misinformed choices. We have developed a series of tools to help seniors better understand the facts about reverse mortgages before they choose to use this complex financial product," said spokesman Ron Eckstein. "More information must be made available so retirees and their families can make educated decisions about what is best for their own situations."
As with any financial product, the bottom line with a reverse mortgage: Ask lots of questions, involve your family members and be sure you completely understand the process and the outcomes before signing up.