Reverse Mortgages are a Scam

Truth: Reverse Mortgages, especially FHA-insured HECMs, are safe, federally regulated loans — not scams.

It’s completely understandable to feel cautious — especially with something as important as your home and retirement. But reverse mortgages have come a long way and are not the risky, shady products they were once rumored to be..

In fact, the most common type of reverse mortgage today — the Home Equity Conversion Mortgage (HECM) — is:

• Backed by the Federal Housing Administration (FHA)

• Regulated by the U.S. Department of Housing and Urban Development (HUD)

• Protected by strict consumer safeguards, including required third-party counseling to ensure you fully understand the loan

• Offered only by HUD-approved lenders that follow federal guidelines

Key protections built into today’s HECM reverse mortgages:

• You remain the owner of your home, and your name stays on the title

• You can never owe more than your home is worth (thanks to non-recourse loan protection)

• You’re not required to make monthly mortgage payments

• Independent counseling is required, so you fully understand your options before you move forward

Reverse mortgages are not scams — they’re legitimate financial tools that can help seniors tap into their home equity safely, flexibly, and with confidence. The key is working with a knowledgeable, licensed professional and making sure the loan aligns with your personal goals.

Learn more about eligibility requirements for a reverse mortgage, situations where a reverse mortgage is best used, and common myths around reverse mortgage that we debunk with facts