Most reverse mortgages are legitimate. But older homeowners are a target for scams, and some of them use reverse mortgages as bait. Here is how to spot trouble.
Red flags
- Mail or ads that look like they come from the government or HUD
- Pressure to use loan money to buy an annuity, life insurance or other investment
- A contractor who offers to “arrange” a reverse mortgage to pay for repairs
- Anyone asking you to sign over your deed or add them to title
- Being told to skip counseling or sign papers you have not read
- Promises that you “can never lose your home” no matter what
How to protect yourself
- Verify any loan officer at NMLS Consumer Access
- Choose your own HUD-approved counselor
- Bring a trusted family member to meetings
- Never sign blank documents
- Take your time; legitimate lenders do not rush you
You can verify Steve at NMLS Consumer Access: Steven Clune, NMLS #2798604, Nexa Lending, NMLS #1660690.
Common questions
Who do I report a reverse mortgage scam to?
You can report to the FTC, the Consumer Financial Protection Bureau, or your state attorney general in Kansas or Missouri.
Is it a scam if the mail mentions FHA?
Not necessarily, since HECMs are FHA-insured, but private lenders are not the government. Be wary of anything designed to look official.
Can someone else get a reverse mortgage on my home?
Only the owners on title who meet the requirements can. Protect your deed and never sign over ownership under pressure.
Related: How it works · Who qualifies · Costs · For families · FAQ · Service areas
Talk to a real person in Kansas City
Steve Clune is a licensed loan officer for Kansas and Missouri. Call or text with your questions. If you miss him, send a text and he’ll get back to you.