Reverse Mortgage Red Flags

The federally-insured reverse mortgage is extremely beneficial because it offers protections where other program do not. Though these protections should hinder people from being able to take advantage of you, there are still red flags to watch for!

Watch Out For These Red Flags


No reverse mortgage lender should represent themselves as a government representative. Any lender who represents themselves as a government official should not be trusted. If you come across this, please report the individual to HUD as they have violated federal regulations.

Paying for Reverse Mortgage Information

You should never have to pay for reverse mortgage information. The information you need is available for free from our specialists, as well as on the Department of Housing and Urban Development’s website.


Any person with whom you interact with on your finances has the ability to take advantage of you. Make certain you review your financial statements regularly so you notice anything that may seem out of the ordinary.

Inaccurate or Incomplete Information

You should not sign a document you deem to be incomplete or inaccurate. Though some paperwork may not be final and can be corrected later, this may not be the case. If you do not understand the document that you are asked to sign, your specialist should be able to explain it to you successfully. If they cannot, it may be wise to seek out someone who can.

Are Reverse Mortgages Safe?

The federally-insured reverse mortgage, or HECM, has instituted many protections which aim to keep the borrowers safe. These include the caps on all fees, the non-recourse feature, and counseling. Reverse mortgage calculators provide a safe and easy way for you to see how much money you could receive with a reverse mortgage. Your information will be kept secure and confidential. The federally-insured reverse mortgage is very safe and has continually-increasing regulations to protect you. If you have questions about anything that seems questionable, you can contact HUD.

Do You Still Have Some Questions?

Visit our FAQ page for a list of our most commonly asked questions and answers.

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