Washington AG wants seniors with reverse mortgages protected during pandemic
A coalition of attorneys general, including Washington Attorney General Bob Ferguson, have asked the federal government to give clearer protections during the coronavirus pandemic to seniors with reverse mortgages who are at risk of foreclosure.
Reverse mortgages are typically home equity conversion mortgages that are insured by the U.S. Department of Housing and Urban Development. It can be a complex financial instrument, says Ferguson, but it's a tool that seniors have as a way to stay in their homes if they have challenges meeting a monthly payment. Most often, seniors do not have to make monthly mortgage payments, but instead, they pay recurring charges like property taxes and homeowner's insurance. They have to keep their homes in good condition as well.
Because HUD insures the loans it sets rules for the loan servicers to follow. And even though the agency implemented relief for reverse mortgage borrowers under the CARES Act, Ferguson says there should be additional steps to keep seniors in their homes.
"Folks with the reverse mortgages have certain protections to delay payments if they're having a hard time," said Ferguson. "But the problem is who knows if they have those rights? You have to be proactive and call somebody up. What we're asking is to put the burden on the servicer to call up the person with the reverse mortgage and explain your rights to you."
https://www.msn.com/en-us/news/politics/washington-ag-wants-seniors-with-reverse-mortgages-protected-during-pandemic/ar-BB145WZ8?ocid=hplocalnews