No. of Recommendations: 1

The problem isn't the terms of the reverse mortgage. It's that fact that it was a very lucrative financial instrument with an average $15,000 in up front in fees to the mortgage originator. They were frequently sold in poor neighborhoods as a risk-free way to supercharge your retirement to folks that lack an engineering degree or an MBA.

They really need to be regulated as closely as their cousins -- pay day loans.


I don't disagree. It just looked to me like people thought it was bad that the mortgage had to be paid back upon death, but were only saying that relative to reverse mortgages. I was just pointing out that that didn't make sense to me.
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