AgentMortgage

Fraud scars image of reverse mortgages

Why are so many ignoring the positives?
Published on Aug 19, 2009

Comparing every loan's shortcoming -- real or perceived -- to a "subprime" product needs to stop. For example, U.S. Comptroller of the Currency John Dugan made an astonishing remark in a prepared statement recently in Orlando: "Consumer compliance risks with reverse mortgages are real, and indeed, I am struck by some of the similarities to the risks of subprime mortgages." Federal Housing Administration Commissioner Brian Montgomery is the assistant secretary of housing for the U.S. Department of Housing and Urban Development. He is a thoughtful, candid Republican from Texas who oversaw the nation's most popular reverse mortgage program for the past several years. He has predicted a bright future ahead for reverse mortgages, despite the current credit crunch, and he even tried to convince his mother to take out a reverse. Montgomery was stunned by Dugan's comments and immediately stated his opinion in writing to one of the nation's top banking officials:...

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