Group Urges Reverse-Mortgage Counseling

Federal and state regulators should ensure that seniors have access to unbiased financial counseling in order to protect against hazards associated with so-called reverse mortgages, Consumers Union said in a report. A reverse mortgage allows those over 62 who own their homes to borrow against the equity and then receive monthly or lump-sum payments from a mortgage lender. The report by the nonprofit group, which is the publisher of Consumer Reports magazine, said reverse-mortgage costs can wipe out equity faster than expected. The group also said that the complex terms of such loans are often not fully disclosed. The report also cites a government estimate that several hundred senior citizens nationwide have been duped by phony estate planners into signing illegal or grossly disadvantageous reverse-mortgage contracts. The full report can be found at https://www.consumersunion.org.