Reverse mortgages are legitimate financial products for many people – but one can see them spinning out of control for homeowners.
Think of all the potential fine-print pitfalls, not unlike subprime mortgages: interest rates, origination fees, insurance and tax requirements, service charges, upkeep provisions, foreclosure triggers, cross-selling of products. It’s a complicated financial arrangement, and, to be frank, one that could easily lead to abuses.
It’s good to see fed regulators are monitoring the situation. But the feds were also supposed to be monitoring who got on airlines and … never mind.
File under: Trust but verify, verify, verify.