4 ms·
> The actual worst case scenario is someone gets a reverse mortgage from the bank to pay property tax with equity from the home, and they end up bequeathing a s
by ThrowawayR2 9y ago
> The actual worst case scenario is someone gets a reverse mortgage from the bank to pay property tax with equity from the home, and they end up bequeathing a smaller proportion of wealth to their heirs when they pass.
In other words, a permanent and widespread subsidy that enriches the banking industry at the expense of the public. Don't we have enough of those already?
- scarmig 9y agoI'm confused how you'd consider reverse mortgages a subsidy.
- ThrowawayR2 9y agoHow could one not? See https://www.consumerfinance.gov/ask-cfpb/what-are-the-costs-i-will-have-to-pay-for-a-reverse-mortgage-en-237/ https://www.consumerfinance.gov/ask-cfpb/what-are-the-costs-... Reverse mortgages don't happen for free. The interest and all those fees go to the banking & other industries. By making reverse mortgages a considerably more frequent scenario, those industries clearly benefit.