Bob Massi is a well known lawyer whose views are respected throughout the country. No doubt he knows his stuff. But the reverse mortgage information in this segment was not accurate. Too often experts have opined on this topic -without getting the facts right. Will Rogers once said "that we are all ignorant-just on different subjects". And this segment reinforced Will Rogers' theorem.
As a lawyer who is known for providing provocative stories, I just wish that he had a better grasp of reverse mortgage facts. These days, with so many poorly researched articles published and poorly researched media segments airing, it is difficult for an independent observer to separate out fact from fiction.
The tragedy of this segment is that such a segment could effectively dissuade one from taking a correct course of action for self and family. This is my beef with the segment. As I have said and written on many occasions, there are things that need to be fixed. The program is not perfect. But this on-air assault is not warranted either.
Not once did I hear about the painsaking and agonizing discussions and policy considerations the major industry participants had (over the years) about this technical deafult issue.
Not once did I hear how the industry self funded counseling plan is being implemented to assuage the concerns of those who have not paid their taxes and or homeowners insurance, as a way to avoid foreclosure.
Not once did I hear that when one takes out a mortgage, any mortgage, that one of the requirements is that taxes and homeowners insurance be paid.
Furthermore erroneous assertions were made that the lender is betting that a senior will die before they can access all the money; that the non-payment of taxes and insurance is a very common problem-happens more often than not; that the home reverts back to the lender.
Maybe, just maybe it is time for Fox and all the other stations that just get it wrong to talk with people (and there are many) who have the knowledge and who can fairly assess the state of the program.
Much agreed.
Posted by: James E. Veale, CPA MBT | January 28, 2011 at 07:24 PM
Another great article, Dennis! Thanks for addressing this issue. It is so frustrating that the media can't/won't get the facts before airing or publishing a piece on reverse mortgages. They really do a disfavor to seniors by not providing the facts.
Posted by: Beth Paterson, Reverse Mortgages SIDAC | January 27, 2011 at 11:06 AM