Are you age 62 or older? If so, many reverse mortgage journalists believe you may be elderly. In fact it is common to read articles about reverse mortgages, the fraud and scams related to reverse mortgages and the elderly borrowers who are the victims. I have been originating reverse mortgages for over ten years now and can’t remember the last “elderly” borrower I had the pleasure of meeting. I would not be opposed to offering to protect anyone who may need a little extra protection but to throw a blanket over the entire industry and refer to the customers as elderly is wrong.
Federal and local governments put all kinds of checks and balances in place to protect mortgage borrowers of all ages. Today it is harder to get through the gauntlet of a loan application than ever before. Just ask the couple who applied for a reverse mortgage but have a different address on their driver’s licenses. They could spend a few days just trying to prove they actually live in their own home in order to get approved for the loan. In addition, to be properly licensed to sell mortgages is another feat in and of itself. The whole system has been so over-fixed that our economy is paying a hefty price in the way of lower and lower home values and increasing inventory. While the industry fizzles and the economy along with it, there are some things that continue to annoy me about what I read about reverse mortgages and currently, specifically it is the assumption that anyone over the age of 62 is too old to make a loan application or manage their own money without a watchdog or advise of another.
I have often urged my customers to review the reverse mortgage with a trusted adviser but most of them forge onward without feeling the need to have anyone else involved in their business. After all they do have a free and clear home that was paid off 10 years ago and a credit score of 850. So it makes sense that the government requires mandatory reverse mortgage counseling and disclosing things like how much you pay each month for a haircut should make the counselor more qualified to make the decision for you, lol. But seriously, why then do we need to belittle reverse mortgage borrowers by writing about these loans for the “elderly?” If you are 62 years young, you may want to consider a reverse mortgage.
Michael Manfredi is a Reverse Mortgage Specialist
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