According to the annual report compiled in 2022 by the government oversight bureau known as the Consumer Finance Protection Bureau (CFPB), there were a total of 1,066,665,967 consumer financial complaints filed. Out of that staggering number that well-exceeded one million complaints, a total of 300 were related to reverse mortgages. For those of you that prefer percentages, that is 00.00281% of complaints filed.
That incredibly low number of complaints is not surprising. Modern reverse mortgages are the most regulated, and safest type of home mortgage in the U.S. This includes reverse mortgages for eliminating mortgage payments, cash-out financing, lines of credit, monthly distributions, reverse purchases, and reverse 2nd home loans.
In case you were wondering, according to Britannica.com, an average of 270 people are struck by lightning each year in the U.S., and 2,000 globally.
Across the entire financial industry, only 3% of complaints regarding consumer finance were related to mortgages in general. That is outstanding for a market of its size. This included conventional home mortgage, Federal Housing Administration (FHA) mortgages, home equity loans or lines of credit (HELOC), reverse mortgages, Veterans Administration (VA) mortgages, and all other types of mortgages.
Of that small percentage of complaints in the mortgage industry, over 99% of complaints were related to forward mortgages, and less than 1% of complaints were related to reverse mortgages.
Could the moral of this story be… If you want to be safe, stay indoors during lightning storms, and get a modern reverse mortgage?
On a more serious note, if you are considering any type of home financing, we recommend that you first speak one of our highly qualified advisors.