Older Americans own over 70% of the wealth and most of this money is tied up in their homes. This translates to $4.3 trillion worth of home equity held by America’s seniors. Is it any wonder banks and lenders are trying to tap this market?

Despite the recent changes in the mortgage lending market, including stricter qualification and underwriting standards, unscrupulous mortgage brokers continue to make high commissions selling harmful mortgages to seniors.

With funding from the Archstone Foundation, Council on Aging Silicon Valley and the Fair Housing Law Project developed the Fair Lending Project for Seniors to address this growing problem.

Our project’s innovative approach unites attorneys, social workers and community partner agencies to provide free legal and social work services to seniors wishing to protect themselves against harmful lending practices. The Project also gives free presentations on predatory lending and borrower protection to seniors and senior care providers.

Reverse Mortgages…Did You Know?

If you are over age 61 and own a home, chances are you have received more than a few reverse mortgage solicitations. Reverse mortgages are an appropriate product for some seniors, including victims of predatory lending who could lose their home to foreclosure without a quick solution. However, reverse mortgages are a poor choice for most seniors, who could find better, less costly ways to make ends meet.

Alternatives to the reverse mortgage include grants and low cost housing rehabilitation loans from City or County governments, California’s Homeowners Assistance and Tax Postponement programs, Energy Assistance, Prescription Drug Payment Assistance, In-Home Supportive Services, Veteran’s Aid & Attendance Pension (applications can be processed through Office of Veterans Services), and other options many seniors don’t know about.

Call the Fair Lending Project for Seniors at 408-350-3229 or email lendingproject@scccoa.org to learn more about these and other reverse mortgage alternatives, or to make an appointment with your local, HUD-approved reverse mortgage counseling agency.