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Target: Consumer Financial Protection Bureau
Sponsored by: Consumers Union
Reverse mortgages are home loans that enable homeowners who are 62 or older to obtain cash by borrowing against the equity in their home. What most people don’t realize is that these loans can rapidly deplete the home’s equity.
The Consumer Financial Protection Bureau (CFPB) could help protect these seniors by enforcing a system to protect borrowers from predatory lending.
Reverse mortgages may be appropriate for some seniors, but reverse mortgages should be considered as a last resort.
Many seniors actually end up financially unstable as a result of these mortgages. Almost 10% of all reverse mortgage loans are currently in default. More borrowers are taking loans at earlier ages, which means that after exhausting their home equity, they have no resources to fall back on.
Sign now to demand the CFPB create a system to protect vulnerable seniors from predatory lending.