Reverse Mortgages ‘ Consumer Beware
A reverse mortgage is a loan against the value of your home. Available to homeowners age 62 or older, reverse mortgages may be beneficial if you have little or no mortgage debt and need cash for living expenses ‘ BUT they have significant pitfalls and better options may be available to you. Learn more from our brochure entitled "Reverse Mortgages: Is it the right choice for you and your family?"
CFC supports SB 1609 (Simitian) ‘ Reverse Mortgage Right to Know
Senate Bill 1609 (Simitian) was signed into law. It established protections for consumers considering a reverse mortgage. It requires:
‘ That a homeowner receives information from a HUD approved counselor before applying for a reverse mortgage
‘ The translation of reverse mortgage documents into the language used to market the product to a limited English proficient consumer.
‘ A 30 day cooling off period during which annuities can not be sold to a purchaser of a reverse mortgage.