Reverse Mortgages: Taxpayers on Hook for Billions of Dollars Every Year
 

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.

Four years old..................the world has changed.

History can be shocking........Slavery, Indians forced off their land, Women not able to vote.

It is likely much, much more by now. It takes time to acquire and process data like this and may take three or four years.

Thank you for posting this. If it saves even one gullible Villager from jumping off the reverse mortgage financial cliff your post will have been worthwhile.

I found that the bleeding of taxpayers due to reverse mortgages going bad continues.

"HUD: Reverse mortgages continue drain on FHA insurance fund
Subsidy rate holds steady in Q2 as program becomes more burdensome for FHA"

From a June 7, 2019 publication: HUD: Reverse mortgages continue drain on FHA insurance fund - HousingWire

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.

Well whoopeedo. Many taxpayers are vets and get screwed by picking up the tabs on RMs that go bad.

It didn't "go bad" he did. He DIED. The terms of the RM were it "pays for life or until the last person leaves the home or is deceased." He died, they paid, and per the terms of the RM they owned the home and for that they gave him scarlet fever and from that CHF. If they didn't want to accept that it shouldn't have been offered. And thank for your 6 years of service in 2 wars too. Whoopdeedo.

Interesting information. Funny, a few weeks ago there was a TV’er on Talk of The Villages who was pushing RM’s to soliciting his business.

I believe there is an advertiser, Mr. Hancock, that is pushing hard for RMs over the past months. Check his post today.

Not sure he is "pushing hard"............as I read, the RM is just one of his products and he is trying to off-set some of the negative, one-sided, posts. IMO. Have a Good One.

Perhaps, in this case, “going bad” is defined as when the outstanding loan amount exceeds the value of the home. When this happens, the taxpayers pay billions to the lender. I don’t believe it was meant as disrespect for your father. I believe the point of this thread is to ask why, we as taxpayers, and not the lender, should be responsible? Seems like a very reasonable question. Certainly not acknowledged by the salesman.

Mr Hancock is a sponsor of TOTV so he has the right to push his business, just as you have the right not to get a reverse mortgage.

I agree. But, when a sponsor creates multiple threads on an open forum, he should expect to get comments and discussion about the pros and cons of the information he posts.

He is ok with you doing it apparently as long as you do not comment on his threads. Than they either get ridiculed or taken down by him.

Although we do not have all the facts most likely his RM had nothing to do with his service for which we are all certainly grateful. I am glad he survived his service. One of my uncles did not as his plane was shot down bombing Germany. Another was shot down over China flying The Hump; other uncles and aunts in the US services survived WWII, as did your father, thankfully. My father survived both WWI and the Spanish Flu while in the army and also lived to age 93. My point is the lender did not lose on the risk it took on lending on your father's property. It knew it could not lose as the we taxpayers would pick up the tab - and we did.

11 years combined in Vietnam,Laos and Cambodia
 

during war both military and civilian,followed by many more trouble spots around the world , taxpayers and feds owe me nothing but what I was payed