Reverse Mortgages Are Just Like Politics

• CFPB Takes Action Against Reverse Mortgage Lender for Deceptive AdvertisingOpens in a new window consumerfinance.gov
• What should I do if I have a reverse mortgage loan and I received a notice of default or foreclosure? | Consumer Financial Protection BureauOpens in a new windo consumerfinance.gov
• 24 CFR Part 206 -- Home Equity Conversion Mortgage Insurance - eCFROpens in a new window ecfr.gov
• An Analysis of Default Risk in the Home Equity Conversion Mortgage (HECM) Program - FDICOpens in a new window fdic.gov
• Federal Housing Administration: Strengthening the Home Equity Conversion Mortgage ProgramOpens in a new window federalregister.gov
• 1 United States of America Consumer Financial Protection Bureau Administrative Proceeding File No. 2017-CFPB-0009 In the MatterOpens in a new window files.consumerfinance.gov
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• Consumer Response Annual Report - files.consumerfinance.gov.Opens in a new window files.consumerfinance.gov
• Reverse Mortgages - files.consumerfinance.gov. - Consumer Financial Protection BureauOpens in a new window files.consumerfinance.gov
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• Handbook 7610.1 04/2024 - HUDOpens in a new window hud.gov
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• Taxation — ptr nj.gov
• Reverse Mtge. Funding LLC v Ridgeway - Unified Court SystemOpens in a new window nycourts.gov
• Understanding the Effects of News-Finds-Me Perception on Health Knowledge and Information Seeking During Public Health Crises - PubMedOpens in a new window pubmed.ncbi.nlm.nih.gov
• Reverse Mortgage Report - U.S. Congressman Mark Takano of California's 39th DistrictOpens in a new window takano.house.gov
• IN THE SUPREME COURT OF TEXASOpens in a new window txcourts.gov
• Americans Have Just $1K Saved for Retirement: Home Equity May Be Their LifelineOpens in a new window nar.realtor
• Baby Boomers Remain Largest Share of Home Buyers as First-Time Buying Falls to Record LowOpens in a new window nar.realtor
• The Danger of the "News Finds Me" Mentality - News Literacy InitiativeOpens in a new window newsliteracy.psu.edu
• New Class Action Lawsuit Alleges Reverse Mortgage Companies Charged Thousands of Dollars in Illegal Fees to Older Homeowners - AARPOpens in a new window aarp.org
• New List Deems New Jersey with Highest Foreclosure Rates | ABIOpens in a new window abi.org
• Effects of the news finds me perception on algorithmic news attitudes and social media political homophily | Journal of Communication | Oxford AcademicOpens in academic.oup.com
• Effects of the News-Finds-Me Perception in Communication: Social Media Use Implications for News Seeking and Learning About Politics - Oxford AcademicOpens in a academic.oup.com
• Jumbo & Proprietary Reverse Mortgages: Breaking the $1209750 HECM Lending LimitOpens in a new window atlanticavenuemortgage.com
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• Reverse Mortgages in Texas: Lifeline or Trap for Retirees? | TX - Colbert Law Group PLLCOpens in a new window colbertlawgroup.com
• Reverse Mortgages: What Homeowners (Don't) Know and How it Matters - Maastricht UniversityOpens in a new window cris.maastrichtuniversity.nl
• Exposing the Truth: The Hidden Costs of Being Steered to Your Realtor's Preferred LenderOpens in a new window federalhillmortgage.com
• CFPB's Successor Homeowner Issue Spotlight: The Other Side of ...Opens in a new window financialservicesperspectives.com
• Florida Housing Announces Wind Down of Federal Reverse Mortgage Assistance Program for Florida SeniorsOpens in a new window floridahousing.org
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• The 2-Minute Thought: A Reminder that a Little Knowledge is a Dangerous ThingOpens in a new window hansondoremus.com
• The Proliferation of the “News Finds Me” Perception Across SocietiesOpens in a new window ijoc.org
• Using a Reverse Mortgage as a Legal Strategy to Prevent Foreclosure - JustiaOpens in a new window justia.com
• Art 16 - Sec 50 :: Texas Constitution - Justia LawOpens in a new window law.justia.com
• Are Reverse Mortgages Taxable? | Longbridge Financial, LLCOpens in a new window longbridge-financial.com
• Ask the Pros: Platinum by LongbridgeOpens in a new window longbridge-financial.com
• Five Unique Benefits of a Reverse Mortgage - Longbridge FinancialOpens in a new window longbridge-financial.com
• Foreclosure of LienOpens in a new window member.texasbankers.com
• Reverse Mortgages | The Villages Estate Planning LawyerOpens in a new window millhorn.com
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• Seniors' Stay NJ tax relief on way while lawmakers consider cuts | NJ Spotlight NewsOpens in a new window njspotlightnews.org
• NAR: Baby Boomers Remain Largest Share of Home Buyers - NRMLAOpens in a new window nrmlaonline.org
• Proprietary Reverse Mortgage Production Tops $950 Million ...Opens in a new window nrmlaonline.org
• Reverse Mortgages, Freedom, And The Silver Tsunami With Brad Byrnes Scores (hWcYSMJtCx)Opens in a new window ort.org
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• Proprietary - Premier Reverse MortgageOpens in a new window premierreverse.com
• The Economic Consequences of Mergers Between Real Estate ...Opens in a new window rajorgensen.com
• New Jersey Property Tax 2026: Rates, Relief & Savings | reAlpha Tech Corp. (AIRE)Opens in a new window realpha.com
• Medicaid ssi reverse.mortgage
• Proprietary Reverse Mortgage — Jumbo Loan Options Up to $4M vs. HECM ComparisonOpens in a new window reverse.mortgage
• What is an HECM reverse mortgage?Opens in a new window rocketmortgage.com
• Supreme Court of TexasOpens in a new window texasbar.com
• RESPA and RED FLAGS | The Data AdvocateOpens in a new window thedataadvocate.com
• Reverse Mortgage? | Treasure Coast LegalOpens in a new window treasurecoastlegal.com
• For some New Jersey homeowners seeking a lifeline, reverse mortgages can backfireOpens in a new window whyy.org

Most people don't reject reverse mortgages because they studied them. They reject the story they inherited.

A commercial they didn't trust. A headline about someone losing a home. A parent who said, "The bank takes your house." A kid who said, "Don't touch my inheritance." A memory from 2008 that never got updated.

And here's the uncomfortable part: that is exactly how politics works.

Researchers even have a name for it — the "news-finds-me" effect. People stop looking for the facts, because they feel the important stuff will reach them — through TV, friends, social media, family. They feel informed. But feeling informed and being informed are not the same thing.

Reverse mortgages live in that same fog. People are so confident about what they think they know. "The bank owns the home." "The kids inherit the debt." "You'll lose the house." "It's always a scam." Or the opposite — "It's obviously the answer."

Most of those statements aren't careful enough to be useful.

Here's what's actually true. With a federally insured HECM, you keep the title to your home. Because it's a non-recourse loan, your heirs are not personally on the hook for more than the home is worth. And you make no required monthly principal-and-interest payment.

But that doesn't make it magic. You still have to live in the home. You still have to keep up the property — and the taxes and the insurance. And the loan balance grows over time.

So the truth isn't "reverse mortgages are bad." And it isn't "reverse mortgages are good." The truth is more demanding than that.

A reverse mortgage is either a fit — or a misfit.

It can protect a retirement plan — or quietly eat away your future flexibility. It can help someone age in place with dignity — or make a hard situation last longer. It can preserve independence — or create confusion for heirs when nobody understands the rules.

The danger was never asking the question. The danger is answering it with folklore.

So before you say yes — study it. Before you say no — study it. Compare it to a HELOC. To a refinance. To downsizing. To draining your investments. To doing nothing — because doing nothing is also a decision.

Because sometimes the most expensive belief is the one you never bothered to verify.

The bank may not take your house. But bad information can take your choices.

Don't be pro-reverse-mortgage. Don't be anti-reverse-mortgage. Be anti-folk-theory.

If you're weighing this — for yourself or for a parent — let's run the numbers together. Fit, or misfit — before anyone decides.

I'm Todd Hanley, a senior loan officer with United Direct Lending and an RICP designation from the American College of Financial Services.

Educational only — not a commitment to lend. A reverse mortgage (HECM) is a loan with obligations including property taxes, insurance, and maintenance; HUD-approved counseling is required. Todd Hanley NMLS #1013665, United Direct Lending NMLS #1749719. Equal Housing Opportunity. Licensed in FL, TX, NJ.