The reverse mortgage industry has suffered an onslaught of ignorant, misinformed and outright adversarial articles in the media from so-called “experts” and “journalists”. Fox Business has risen above most when it comes to reverse mortgages. My real gripe isn’t so much the sophomoric reporting and lack of research but the incalculable damage these stories do to the seniors who may need the product the most and secondly our industry’s reputation.
Whether you agree to Fox News’ claim to be fair and balanced politically depends on one’s perspective. But facts are stubborn things and judging an article on it’s factual basis is a much easier task.
Read the Fox Business article “Reverse Mortgages: Right for you?” and post your comments. Was Fox Business fair & balanced in this case?
13 Comments
Have 1 year (total) to sell house, AFTER up to one year if homeowner is ill and can’t live there. Still have to pay property taxes, insurance and maintenance (all normal as would have to do it anyway). Insurance pays off deficit if any. A line of credit is also an available option with the adjustable. What’s quality of life worth to those who earned it?
I believe the article is a good representation of reverse mortgages. One of the best I’ve seen recently.
I think it is the best written article that I have seen so far. It contains facts, not hysterical fiction.
I actually thought this article on HECM World was a bit harsh. I was ready to lead the lynch mob before clicking on the article, as I detest anything to do with Fox News, but I actually didn’t think it was that bad of an article. It seemed pretty balanced to me. And there have been some horrendous efforts made by other journalists out there. HECM World, anything specific you find “adversarial,” “sophomoric,” or “misinformed”?
Dana,
I was being a bit ironic in my statement. I am especially harsh on writers of recent articles like Time Magazine online posted and their ilk.
I think this article was fair & balanced, more so than most of the articles we’ve seen of late. That’s the real point: Did their story live up to their motto? The headline “Fair & Balanced”… alludes to the fact that some disagree with Fox’s tagline while others wholeheartedly agree especially when it comes to political stories.
A fair & balanced article about reverse mortgages for a change. I agree, Fox Business deserves kudos for a job well done.
I think the article is accurate.
reasonableone, – Re: your comments,
1. Your Comment: “Just wait, a few years we will have the Reverse Mortgage Crisis. This plan is built on the assumption that real estate prices will continue to go up, maybe, maybe not.”
Reply: You may not be familier with the real estate industry, 20 plus years or market for the real estate values opver the last 30 plus years. The low values of property, for all, means the borrower will receive less on their mortgage whether it is a conventional loan or a reverse mortgage loan or a FHA/HECM for Purchase loan
2.Youe Comment: “The only sure thing is that the loan originators make BIG FAT FEES, and the taxpayer will ultimately be on the hook for the real estate.”
Reply: We taxpayers are on the hook, along with the Subprime borrowers and the Option Arm Loan borrowers, etc. for the type of lending practices allowed by the powers that be in the conventional loan Industry. ?- Is your home worth more today than year 2006? The answer is probably, No! Where is the information that the Reverse Mortgage caused this decline in home values in this country? The senior Reverse Mortgage borrower is a victim of the lending practices allowed in our great country.
Comment: I could go on but I choose to stop here!
Considering some of the other media coverage that has completely misrepresented the reverse mortgage, I didn’t think this was too bad.
Most accurate article I have seen to date, on Rev Mtge. Good for Fox,
As a loan officer offering reverse mortgage products for the past several years, I feel the Fox article was very balanced and quite fair. It represents the pros and cons much like I would when consulting with a client or their family. It appears as though Fox did their research and approached the article from an educated perspective….something that has been sorely missed in many other mass media articles. Good job, Fox!
Except for a few monor errors by some being quoted (“you can ever owe more than your home is worth”, says Lyons – try selling the home when you are upside down and still alive) it was a very good piece. Seniors are generally well equiped to make wise decisions when they take the time to learn the facts and are not afraid to check something out. Reporters need to stop scaring people just to increase their audience. It is a good public service to help seniors get the facts and take advantage of this very useful financial tool. Too many people go into foreclosure because they are afraid of finding out about alternatives such as HUD approved, non-profit housing counselors who do not charge for their service. Seniors are fortunate to have access to this “no income, no credit score” requirement mortgage program. I challange reporters to start using some common sense to get the real estate market improving by helping seniors find the reverse mortgage solution to assist them to remain in their homes without mortgage payments. If the children need or want to have the financial windfall when their parents have passed on, let them help their parents who are struggling now. Many are not able to, and many parents who try to hang on too long without sufficient cashflow end up losing it all. Then there are those who are intelligent enough to use a reverse mortgage credit line to help them through this difficult time without selling off other investments that may recoup in future years. My point, it is a tool. Used in the proper fashion with proper knowledge, it is infinately helpful. With all the protections such as the mandatory counseling, seniors should be urged to learn more about reverse mortgages whether they need the tool now, or later, or not at all if they are financially not in need. Bless Fox for reporting facts and not grandstanding with scare tactics like others have.
Probably the most thorough description of the program that I have ever read. They did a great job in my opinion.
I’ve originated reverese mortgages. This is a very accurate article and pretty thorough.
THe introduction of the fixed rate programs is a perfect example of using YSP on a mortgage to lower/pay closing costs for the borrower to make it affordable / more economically feasible. Congress aught to take note of this when they were messing with ysp in forward mortgages in their Finance Reform.