NPR story focuses on elders victimized by reverse mortgages

For many seniors who are rich in home equity but poor in cash, reverse mortgages are becoming a popular option.  The growth inthese mortgages has skyrocketed in recent years. According to a 2007report from the Department of Housing and Urban Development, the numberof reverse mortgages grew from nearly 8,000 in 2001 to more than107,000 last year. The average loan amount grew 80 percent to $138,700during the same time period, a 2007 report from the AARP Public PolicyInstitute found.

Advocates and regulators say the growth hasopened the reverse mortgage industry to salespeople looking for a quickway to make a hefty commission — and some of them are unscrupulous.Some salespeople earn the trust of seniors by calling themselves”registered financial gerontologists” or certified senior advisers.They use aggressive sales methods, enticing seniors through radio andTV ads, and direct mail. They also try to sell other financialproducts, many of which are unnecessary and come with hefty fees.

Listen to the rest of the story here:  http://www.npr.org/templates/story/story.php?storyId=87994065