The reverse mortgage industry is misleading American seniors, according to a report by the federal government’s chief advocate for the nation’s consumers.According to the Consumer Financial Protection Board, reverse mortgage ads mislead seniors by failing to warn that:
- A reverse mortgage is NOT a government benefit, but a home loan with fees and compounding interest that must be repaid.
- Seniors who opt for a reverse mortgage can lose their homes.
- Income is not "guaranteed for life." Increasingly long-lived seniors may outlast the income they can draw from equity in their homes.
Navigating retirement is hard enough for seniors without advertisers spewing half truths designed to separate homeowners from their equity.
Sign this petition now and tell the federal trade commission to require reverse mortgage advertisers to stop misleading American seniors into taking out costly loans against the value of their homes. Secretary Clark,
I strongly urge you to propose new truth in advertising requirements for the reverse mortgage lending industry.
As you may know, the Consumer Finance Protection Board has found that ads by this industry often mislead consumers or fail to adequately communicate key information that will impact the finances of older homeowners.
Specifically, I ask that the Federal Trade Commission require that all reverse mortgage ads explicitly acknowledge -- in text and spoken word -- that:
* A reverse mortgage is NOT a government benefit, but a home loan with fees and compounding interest that must be repaid.
* Seniors who opt for a reverse mortgage can lose their homes.
* Income is not "guaranteed for life." Increasingly long-lived seniors may outlast the income they can draw from equity in their homes.
[Your comments]
Sincerely,
[Your name]
