William Bryan: “Many of our senior citizens are once again being targeted by scam artists. This time, senior citizens are being charged…”

“Many of our senior citizens are once again being targeted by scam artists. This time, senior citizens are being charged excessive fees by so-called estate planners who provide information on reverse mortgages and charge 8 percent to 10 percent of the loan. More than 12 million elderly homeowners own their homes free and clear of mortgages. This implies the availability of a potentially large market for home equity conversion programs. Reverse mortgages, one of the hottest financial products of the 1990's for seniors, allow homeowners to tap into the equity in their homes and use that equity as a source of income. They work much like traditional mortgages, only in reverse. Rather than making a payment to your lender each month, the lender pays the homeowner. Depending on the loan, a reverse mortgage becomes due with interest when the homeowner moves, sells the property, or dies. The reverse mortgage program provides tens of thousands of older homeowners, who are 'house-rich, but cash-poor,' the opportunity to turn their home equity into spendable cash to deal with major financial setbacks such as home repairs, significant health costs, or basic living needs. Reports of abusive practices should not diminish the value of this product. Rather, we must find a way to protect senior homeowners from scam artists who prey on the vulnerabilities of elderly Americans.”