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Reverse Mortgage Scams Averted
A new program to help elderly
homeowners find reputable reverse mortgage lenders and counselors has been launched by the
National Center for Home Equity Conversion (NCHEC).
Reverse mortgages convert home equity into cash with no repayment for as long as borrowers
live in their homes. That's a great idea for many equity-rich, but cash-poor retirees.
According to NCHEC director Ken Scholen, "Scams and ripoffs are beginning to appear
in this market, but now we have a way to recognize lenders and counselors who pledge to
uphold strict ethical standards."
To qualify as "NCHEC-Preferred," lenders and counselors must agree to a code of
conduct, and must give a copy of that code to each consumer upon initial contact. The code
requires lenders to present all homeowner options, including a range of twelve reverse
mortgage choices and a variety of alternatives to reverse mortgages.
The options and alternatives are presented in a 13-page report, "Personal Reverse Mortgage Analysis." Lenders are advised not to charge a fee for the reverse mortgage analysis. (Source: David Demko.)
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