Thursday, September 4, 2014
Article on Complex Decision-Making and Cognitive Aging Call for Enhanced Protection of Seniors Contemplating Reverse Mortgages
Debra Pogrund Stark (The John Marshall Law School), Jessica M. Choplin (DePaul University), Joseph A. Mikels (DePaul University), and Amber Schonbrun McDonnell (The John Marshall Law School), recently published an article entitled, Complex Decision-Making and Cognitive Aging Call for Enhanced Protection of Seniors Contemplating Reverse Mortgages, Arizona State Law Journal, Vol. 46, 2014. Provided below is the abstract from SSRN:
This article explains what reverse mortgages are and how they work. It also analyzes who could potentially benefit from them, but why this type of loan is so problematic for many seniors. The article then considers steps that can be taken to improve the effectiveness of current federal rules and counseling protocols to enable seniors to make well-informed decisions keeping in mind cognitive barriers and the complicated nature of this loan product.
Because many seniors may not be noticing the high costs associated with federally insured reverse mortgages, many believe these loans are now the product of choice for “predatory lending.”