Talk of The Villages Florida - Reverse Mortgages: Taxpayers on Hook for Billions of Dollars Every Year

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- - Reverse Mortgages: Taxpayers on Hook for Billions of Dollars Every Year (https://www.talkofthevillages.com/forums/investment-talk-158/reverse-mortgages-taxpayers-hook-billions-dollars-every-year-315704/)

Quote:

Originally Posted by EdFNJ (Post 1894761)

As I wrote in a similar thread here a few days ago (https://www.talkofthevillages.com/fo...ssness-315515/) a RM was a godsend for my father who passed away 3 years ago at 93. FANNIE has owned it since he passed but he made out like a bandit.

He was a WWII & Korea Navy Vet so the Feds (and by default taxpayers) owed him.

TRUE! There are many reasons and people that benefit from reverse mortgage. Some just want to say hurtful lies.

This is financial musical chairs - when the government incompetence music stops!
Who ever is left will be left with massive federal debt that can’t be paid off!
America is bankrupt now it will only it worse before the total collapse

Quote:

Originally Posted by Plinker (Post 1894655)

Taxpayers On Hook For Billions Of Dollars Every Year

This from the Heritage Foundation: 2017

“Because of the largesse of federally financed subsidies in the Federal Housing Administration’s reverse-mortgage program, the federal government has gradually crowded out private insurers from the market for these financial products since the program began in the late 1980s.
Indeed, amid the multi trillion-dollar maze of federal insurance and guarantee programs lies the Federal Housing Administration Home Equity Conversion Mortgage program—an insurance program providing loss coverage on reverse-mortgage originations backed by federal taxpayers.
The loan program simply has become a severe financial burden for federal taxpayers. The Federal Housing Administration reports that the Home Equity Conversion Mortgage program faces a financial shortfall totaling roughly $14 billion in fiscal year 2017.
To avoid any further compounding of the fiscal fiasco, policy leaders should wind down the federal Home Equity Conversion Mortgage program, and in the interim certainly refrain from any misguided reforms that would increase moral hazard, put more taxpayer money at risk, and ultimately continue to crowd out private mortgage insurers from the market for reverse mortgages.”

I was stunned when I read this. This is a fact a salesman will never reveal.

At the same time, The Heritage Foundation is opposed to federal regulations that might keep private insurers from harming the gullible. I believe in Consumer Protection because insurance companies hide so much. If the FHA program is losing money, change the fee system so it breaks even. Just like Social Security, Medicare, Medicaid, other federal support systems, charges for driver’s licenses and passports. Adjust the fees. If private insurers can do better, let them. The private student loan market has made tons of money for investors, but it has been very tough on students and families.

The following are DIRECT QUOTES from the commission-based salesman who advertises on ToTV concerning the topic of taxpayers losing billions of dollars from reports dated 2018 and 2019.

From Jan 21, 2021 @ 5:50 pm:

“Bottom line, the insurance fund has never been healthier based on the sweeping reforms that have been made to the HECM program over the last 7+ years.”
“So, the program is in good shape today, the taxpayers today are not on the limb for the deficits, and borrowers 99% of the time have plenty of equity in their home when they sell it or pass away.”

Questions to ask concerning honesty and transparency:
1) If 99% of RM’s leave plenty of equity then why are taxpayers paying billions of dollars each year to keep the program afloat?
2) Why does he refuse to acknowledge that he has been proven categorically wrong with regard to the above quotes despite current figures from very reputable sources?

Do you believe what a used-car salesman tells you?
Do you believe what an annuity salesman tells you?
Why would you believe everything a commission-based reverse mortgage salesman tells you?
Clearly, you should not!

Contact a fiduciary, financial planner and explore all of the various options, including reverse mortgages, before you take advice from a salesman.
You are talking about a huge financial move that will have forever-lasting consequences.

If it is not wasn’t for the ads there would be no talk of villages do you think someone does all this for free