Senate OKs Bill on Reverse Mortgages

The U.S. Senate approved a bill intended to protect the elderly from con artists who charge exorbitant fees for reverse mortgages that provide cash to older homeowners. The legislation was approved on a voice vote. A House version of the bill is pending. The fraud typically involves thieves who offer to help seniors obtain a reverse mortgage and charge 10% of the mortgage for their advice. The bill would require that homeowners be told of all costs for obtaining reverse mortgages and would ensure that homeowners not pay for any unnecessary or excessive costs. Reverse mortgages are designed to help cash-strapped elderly homeowners borrow against the equity in their homes.