FOR IMMEDIATE RELEASE

Contact:   Kristin Overton

Reverse Mortgage Manager

SPECTRUM GENERATIONS

1-800-282-0764 x 118                                                                                                

                                                                                                        

                                                                                                          

                                                                                                           

                                                                                                                               

 
 
                                                      

                                                                                          

SPECTRUM GENERATIONS EDUCATES

ON REVERSE MORTGAGES AND SCAMS

 

(Augusta – April 10, 2009) SPECTRUM GENERATONS warns all senior homeowners that a number of scams involving the Home Equity Conversion Mortgage (HECM), have been made public recently.  With the release of the President’s “Making Home Affordable” Housing plan, propaganda and slews of supposed loan offers have been received in the mail by many homeowners.  These mailings are under the guise of being a public service or official notice from the Federal Housing Administration, Housing and Urban Development (HUD), or even supposed “Bureaus” of our Federal Government which are not actually in existence, but sound as though they could be legitimate.  This confusion and “opportunity” for scammers has been made possible by the confusion of what the Housing Plan actually is and who actually qualifies for relief.   

 

The HECM is a Federally-backed reverse mortgage loan, offered locally as well as nationally.  It is a legitimate loan with the purpose of allowing homeowners aged 62 or older the chance to take a percent of the equity in their home as proceeds, repaying the loan only when the borrowers leave the home permanently or pass away.  This particular loan is backed by the FHA, but is not a Federal Government loan offering.  While there are many lenders who will only recommend this loan if they honestly feel that it is in the best interest of the borrowers, there are always those whose goal is to swindle.

 

Spectrum Generations is a HUD-Approved Housing Counseling Agency, offering reverse mortgage counseling on the HECM.  Counseling is a mandatory requirement of the HECM loan process and must be completed before an Application can be signed or an Appraisal can be ordered.  Kristin Overton, the Reverse Mortgage Manager, and her two other Counselors are committed to providing the most accurate, unbiased, truthful information on the reverse mortgage. 

 

Although throughout the United States there have been reports of counseling sessions lasting only twenty to thirty minutes, the Counselors at Spectrum Generations take as much time as is needed in order to ensure that every potential borrower understand the entire product, the implications, and the decisions which need to be made.  Our telephone calls or in person meetings frequently last an hour or more in order for us to be confident that no one is entering into a loan without the proper understanding of the product itself.  Alternatives are always discussed as are referrals to their local Area Agency on Aging (AAA) in order to assist the financial needs of consumers.  Many seniors have never looked into programs which can save them money and are pleasantly surprised by what they learn from their local AAA.    

 

Besides the calls to schedule a counseling session, Spectrum Generations has also received a number of contacts from those who are at risk of losing their home, but who are not eligible for a reverse mortgage.  Spectrum Generations makes every effort to give these homeowners the tools and information needed to get the assistance they deserve but also wishes to inform all homeowners how to receive this help.    

 

Spectrum Generations is committed to providing all residents of, not only our 6 county service area, but also in 48 of the States with accurate, impartial education and information on the HECM.  For over 30 years we have operated as the Central Maine Area Agency on Aging, devoting our efforts to providing information, referrals, advocacy, support, community, nutrition, physical activities and intellectual activities for the aging population and those who care for and about them.      

 

Free foreclosure prevention assistance is offered and all homeowners at risk are encouraged to contact HUD’s Homeowner’s HOPE Hotline at 1-888-995-HOPE(4673).  More information on the “Making Home Affordable” Housing Plan can be found at www.makinghomeaffordable.gov or at www.HUD.gov.  Those who suspect they have been “scammed” or who may have fallen victim to fraudulent, deceptive or unfair business practices are encouraged by HUD and Spectrum Generations to call the U.S. Federal Trade Commission at 877-FTC-HELP (877-382-4357).

The public is invited to call the Agency’s Consumer Helpline at 1-800-639-1553.  The Agency’s web site is located at www.spectrumgenerations.org