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Released: August 05, 2011
AARP files another reverse mortgage suit
Source: Ron Lieber, NY Times (Free Registration)
In recent months, AARP Foundation Litigation has prodded the United States Department of Housing and Urban Development to reverse a rule change that had made it harder for some surviving spouses of reverse mortgage holders to stay in their homes. Now, the foundation is turning to the financial institutions that own and service the mortgages. This week, the foundation, along with the law firms Mehri & Skalet and Kerr & Wagstaffe, filed a class action suit against both Wells Fargo and Fannie Mae on behalf of reverse mortgage holders and their heirs. The dispute is over what should be a simple question: Should heirs to a home that has an outstanding reverse mortgage pay the lender the remaining balance on the loan to clear the debt? Or should they merely write a check or get a new mortgage for the (often much smaller, nowadays) market value if they want to keep the home?Read Full Article: AARP files another reverse mortgage suit
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