Chuck Schumer: “Mr. President, I am very interested in this legislation. I do support the bill. I think the reverse mortgage is an…”

“Mr. President, I am very interested in this legislation. I do support the bill. I think the reverse mortgage is an important tool for many elderly in order to live out their days with basic needs. However, this week, with the assistance and support of Senator Kohl, the chairman of the Aging Committee, I was given the opportunity to chair a hearing on reverse mortgages, where, frankly, I was shocked to learn some of the predatory practices that are going on. Senator Crapo is exactly right; there are, in fact, mostly elderly widows who are accessing these reverse mortgages. That is why it is so important that we protect them with counseling and with aggressive oversight and that the predatory marketing that is now beginning to go on is brought to a close. I will give some examples. Some very bad companies are now advertising: Come sell reverse mortgages and, by the way, you can double your commission if you sell an annuity at the right time. We heard testimony from a family where, in fact, an elderly widow who had a home equity line of credit had money in the bank, was brought into the confidence of a salesman, who then ended up selling her a reverse mortgage she didn't need and a deferred annuity she didn't need, and she was over 80 years old. It was a tragedy.”