Rick Lazio: “Mr. Speaker, S. 562, the Housing Programs Extension Act of 1997, will provide security and peace of mind for senior…”

“Mr. Speaker, S. 562, the Housing Programs Extension Act of 1997, will provide security and peace of mind for senior citizens seeking to obtain an FHA-insured reverse mortgage. In short, this legislation gives the Department of Housing and Urban Development authority to issue regulations protecting senior homeowners from being charged excessive or unnecessary fees in the reverse mortgage application process. According to a HUD investigation earlier this year, seniors applying for reverse mortgages were being charged up to 10 percent of the total loan amount for estate-planning services from third-party service providers. In some cases this amounted to as much as $10,000 for simply driving homeowners to the bank and sitting with the applicants during discussions with the lender. Charging senior citizens $10,000 for services that are essentially free is truly an abomination.”