Red Flags: Predatory Reverse Mortgage Schemes

Watch for these warning signs:

Pressure Tactics

• "Act now or lose this offer"
• Door-to-door solicitation
• No cooling-off period offered

Cross-Selling Schemes

• "Buy an annuity to get the best rate"
• Insurance products bundled with loan
• "Invest in this and get cash back"

Fee Red Flags

• Unusually high origination fees
• Charges for "processing" or "application"
• Fees not explained clearly

Protection

• Get HUD counseling BEFORE any application
• Get a second opinion from a different lender
• Never sign anything you do not understand
• Never pay upfront before locking in a rate

Compliance Notice: Borrowers must be 62 years of age or older. HUD-approved counseling is required. A reverse mortgage is not a government benefit. The loan becomes due and payable when the last surviving borrower no longer occupies the home as their primary residence or fails to meet the obligations of the mortgage.