Once more, new FHA insures HECMs. Lenders and you may brokers exactly who promote opposite mortgage loans both focus on that mortgage was federally insured, like which insurance is generally to the borrower’s security. not, it insurance coverage program mostly professionals the lender.

Tricky Adverts

Some adverts for reverse mortgages declare that you get “tax-free money.” However, contrary home loan continues aren’t taxed-an opposing financial are that loan, perhaps not money. Plus, the brand new ads always does not reveal this new fees, standards, otherwise risks associated with loan. Tend to, the elderly try not to know the regards to reverse mortgages, and you will misleading mailings just become worse this issue.

FHA handles the latest ads regarding FHA-backed money and has specific rules getting opposite mortgage loans. Under FHA statutes, loan providers need to determine all the requirements and features of your own HECM program within the clear, consistent language so you can people. Among other things, a lender has to reveal every adopting the. Read more