Every now and again ReverseResource.com receives email and/or comments. The following comment was left in the contact us section. My response follows:
I would like to state that we are very unhappy with the reverse mortgage that my parents took out from WSFS Bank in 1990. It is a shared appreciation loan that gets 82% of the value of the home. My mother is about to go into a home and the house value is around 2,000,000. My mother will not have the income from the reverse mortgage and needs the money for the nursing home. Not only is WSFS getting a ridiculous interest rate of 11.75% they are going to walk away with another $300,000 - $700,000. This is criminal and immoral to allow these kinds of contracts. Fannie May no longer honors these clauses in their contracts for that very reason. However, when I spoke with Bob Bell at WSFS about the contract he not only was rude but did not see anything wrong with this and no reason he should renegotiate the contract that my parents signed. My father not only was not in his right mind…he died of a brain tumor! It would appear to me to be predatory lending. What does your organization do to protect seniors against lenders with only their profits and self interest at heart and why do you support banks that rip off consumers equity in addition to the huge interest rates they charge? Do you have any recommendations for recourse? Thank you for your response.
Christine Carlton
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Hello Christine Carlton:
Thank you for your comment on ReverseResource.com and I am disheartened to hear of your mother’s situation. Unfortunately ReverseResource.com is only a blog that collects news stories for informational purposes. The following is from our about page (http://www.reverseresource.com/about/) and it explains the site:
Reverse Resource.com is a blog about reverse mortgages, law, insurance and real estate. Information, news, articles and resources are hand-picked from thousands of sources for the site. We hope you find the information on ReverseResource.com useful.
We are not an organization. And we don’t support any banks or unscrupulous lenders. I’m sorry but I know of little you can do other than contact your congress person and lobby to have the law(s) changed. I also urge you to visit www.ReverseMortgageLoanBlog.com for even better information concerning Reverse Mortgages.
Thanks again,
Josh Dippold
ReverseResource.com
