Claire McCaskill

I think this is one of these situations where Washington probably doesn't know best.

Taxpayers make up the difference, not lenders.

We commend Senator Claire McCaskill, whose proposed legislation in this area aimed at preventing fraud and reverse mortgages.

I am just--curious. I want to make sure I understand.

Senator Claire McCaskill has proposed legislation aimed at preventing fraud, and requiring that ads for government-backed mortgages present a balanced view of their risks and benefits.

Nine out of ten of these reverse mortgages, and increasingly these sale-leaseback arrangements, which are nothing more than stealing the equity from senior citizens.

I think that those people--those Attorney Generals who engage in inappropriate Pay to Play contractual arrangements with campaign contributors will hear the wrath of the voters at the ballot box.

I don't think, frankly, that's our place.

Thank you very much. I want to, first, on a personal note, say how terrific it is to see the Attorney General from Missouri here.

These are complicated, expensive financial instruments, that, while maybe appropriate, in limited circumstances for some seniors, with appropriate counseling and appropriate information, they are being marketed now in ways that make my…

it's the taxpayers that get left holding the bag, because we are insuring 90 percent plus of these loans

Thank you, Chairman Lieberman.

I just think there has been this enormous explosion of contracting in the Federal Government without anyone slowing down and really doing the cost-benefit analysis.

I would like you to give that to the Committee in writing, if you would, what kind of value are we getting out of contracting versus hiring direct Federal employees.

That troubles me because these appraisers are supposed to be HUD-certified.

Let's make sure everybody understands what cross-selling is.

So what actually happen is that there's a tail on this fraud, right, because if you recruit someone and put them in a home with a false appraisal and you pull the money out of the house based on the false appraisal and the person gets the…

They're expensive, they're complicated, and the other looming issue out there, in spite of what you see on television, this is not a government benefit.

the taxpayers have an interest in that piece of property being insured. They're on the hook.

This is not a town hall. This is not a forum for Senator Claire McCaskill.

The success of Fannie Mae is completely dependent upon the American taxpayers, right?

HECMs are an increasingly popular way for seniors to access equity in their homes.

So there is no Federal oversight over the mortgage banking industry when it relates--relating to reverse mortgages?

I think it's important that we get out of Washington and have hearings in the rest of the country.

There is a great motivation on the part of the government to make sure that the tax--not just the taxes are paid but clearly the insurance is paid.