Reverse mortgages a growing concern

[flashl]

Washington — Now that the subprime mortgage business has crashed, many lenders are reviving their incomes by persuading older homeowners to take out reverse mortgages.

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"When used properly, reverse mortgages can be an effective way for seniors to tap into the equity of their house," U.S. Sen. Herb Kohl (D-Wis.) said at a December hearing of the Senate's Special Committee on Aging. "But too often these products are not used effectively, and seniors end up losing their homes."

Recently, a bill was introduced to prevent abuses of reverse mortgages. "I think we should take a closer look at them," said U.S. Sen. Chris Dodd (D-Conn.), chairman of the Senate Banking Committee.

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State officials also are becoming concerned. This month, Florida Attorney General Bill McCollum warned people considering reverse mortgages that "deceptive practices and allegations of high-pressure sales tactics are being more frequently encountered."

The Atlanta Journal-Constitution

[Trajan]

1. I saw Robert Wagner hawking these products on TV recently ...

Well .... It Takes A Thief ....

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2. Boomers are the targets of the lenders. nt

[tularetom]

3. Anything that Pat Boone shills for has to be slimy