JEFFERSON CITY | Sen. Claire McCaskill, Missouri Democrat, is citing a report suggesting reverse mortgages can be risky for seniors while pushing for greater industry regulations.
Reverse mortgages allow people age 62 and older to convert their home equity into cash. The loans typically come due when the borrower dies, sells the home or has not lived in it for a year.
A report Tuesday by the National Consumer Law Center says the loans can be appropriate for seniors. But it says some lenders are deceptively marketing them as “government benefits” or promoting them as a way for seniors to enjoy wealthy lifestyles.
McCaskill said taxpayers could be on the hook for bad loans, because the federal government ensures them. The Democratic senator hopes legislation creating more consumer protections can pass by early next year.