Reverse Mortgage VideoRecently, AARP put out a video called Reverse Mortgages: Rescue or Trap? This is one of the most well rounded examples of reporting that I have seen. It is not a sales video with James Garner or Robert Wagner.
The video is designed to do a little educating but mainly to identify the pros and cons by talking to different types of consumers and experts. This starts with an interview with an actual user of a Reverse Mortgage. They then talk to Representative Judy Biggert. She is a Republican from Illinois who is the ranking member of the House Financial Services sub-committee on Oversight and Investigations. She'll talk mainly about the HECM Counseling.
Next is Congressman Barney Frank, a Democrat from Massachusetts. He is the Chairman of the House Committee on Financial Services. He answers questions as to how good they are and whether they might be the next sub-prime crisis.
Next are two people in the studio with Sheila Kast of AARP. They are Peter Bell, President of the National Reverse Mortgage Lenders Association (NRMLA) and Suzanna Montezemolo, Vice President of Federal Affairs at the Center for Responsible Lending. They discuss any protections that are built into the system as well as problems with aggressive marketing and fraud.
Last is Mary Beth Franklin, Senior Editor of Kiplinger Financial Magazine. She talks about the inappropriate uses of a Reverse Mortgage and goes on to discuss the two new extremes - families that are trying to save their home from foreclosure and the more affluent who are using the reverse mortgage as a bridge until their investments recover. Using a Reverse Mortgage to buy a new home is also discussed.
To view the Reverse Mortgage video from AARP use this link: Reverse Mortgage - Rescue or Trap?