Fraudulent Reverse Mortgage Counseling

Channel 8 in Las Vegas is reporting that scammers are targeting seniors through reverse mortgages using a tactic called fraud counseling.

“A senior may not know they are eligible for $100,000 in equity for their home — they may think it’s only $60,000,” said Elisabeth Daniels with Nevada’s Fight Fraud Task Force. “If they get fraudulent counseling, when the loan goes through, the counselor goes and takes the extra money they didn’t know they were eligible for,” she said.

Reverse mortgage lenders don’t provide counselling. Counselling is provided independently by HUD sanctioned counselors. Most counseling that I see is done by phone and there is no opportunity for a counselor to collect equity from a senior. How is this supposedly happening?

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