Jack Reed: “I am pleased the Senate took favorable action today. This legislation, the Senior Citizen's Home Equity Protection Act…”

“I am pleased the Senate took favorable action today. This legislation, the Senior Citizen's Home Equity Protection Act, would protect seniors from unscrupulous market activities of a very small group of business people. We have, throughout the United States and through the auspices of HUD, introduced a program called the reverse mortgage program. This allows seniors who have their house mortgage paid off, they have all the equity in the home, rather than selling the home to confront the costs of being a senior, they are allowed through this program to essentially go to the bank and have a monthly or a lump sum payment in lieu of the equity in their home. This allows many seniors to stay in their homes. It allows them to meet the needs of health care and all the pressing needs of seniors. What has happened though is that a group of unscrupulous operators have come in, under the guise of estate planning, and now are charging exorbitant fees to inform seniors of this reverse mortgage program, sometimes collecting up to $10,000. What is particularly alarming, indeed, and particularly reprehensible is the fact that all of this information is absolutely free from the HUD office in their locality.”