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AARP and Reverse Mortgages

What is AARP’s Role in Reverse Mortgage

AARP is a leading provider of reverse mortgages in the US. As a trusted resource for older adults, AARP provides guidance and support throughout every stage of the reverse mortgage process, helping seniors make informed decisions about their financial future. Whether you are just starting to consider reverse mortgages or are ready to apply for one, AARP can help you navigate all the options available and ensure that any reverse mortgage you choose is right for your unique circumstances. So if you're looking for expert advice and assistance with reverse mortgages then you should learn more about AARP’s role in Reverse Mortgages. 

With reverse mortgages, seniors can access the equity they've built up in their homes to supplement their retirement income. These loans allow you to take out a lump sum or regular payments, but unlike typical home equity loans, reverse mortgages do not require monthly payments and the amount borrowed will never be more than your home is worth. And because reverse mortgage repayments are tied to the value of your home, they will never increase over time.

Whether you're just starting to explore reverse mortgages or are ready to apply for one, AARP can help you navigate all the options available and make sure that any reverse mortgage you choose is right for your unique circumstances. With our expert guidance and support throughout every stage of the process, you can rest assured that you are making the right choice for your retirement.

What Does AARP Think Of Reverse Mortgages?

AARP is generally supportive of reverse mortgages, as they can be an effective way for older adults to access equity in their homes. These loans allow homeowners to tap into their home's value without having to sell or move out, making them a useful tool for seniors who need extra funds but do not want to compromise their financial security.

However, reverse mortgages do carry certain risks and drawbacks. For instance, reverse mortgage debt grows over time due to interest charges and other fees, which means that borrowers could wind up owing more than the value of their homes at the end of the loan term. Additionally, reverse mortgages require upfront costs that must be paid out-of-pocket by borrowers, so it is important that prospective borrowers carefully consider all of the costs and benefits associated with reverse mortgages before making a decision. Ultimately, reverse mortgages can be a valuable option for seniors who are looking to access their home equity in a way that suits their individual needs and financial situation. If you are considering a reverse mortgage, it is important to work with a reputable lender who can help guide you through the process and ensure that you fully understand all of your options.

AARP Influences Reverse Mortgage Policy

AARP is a major influence in the reverse mortgage industry. The nonprofit organization routinely weighs in on policy issues related to reverse mortgages, providing input to policymakers and regulators as well as advocating for changes that would benefit older Americans who are interested in this type of product.

One such example is AARP's involvement in the Consumer Financial Protection Bureau's (CFPB) study on reverse mortgages, which began back in 2016. Since then, AARP has worked closely with CFPB staff and other stakeholders to provide input on ways to improve consumer protections for seniors using this financial tool. Some of these recommendations have been included in the final report released by CFPB earlier this year.

In addition to its work with CFPB, AARP is also actively involved in the development of reverse mortgage guidelines by the Federal Housing Administration (FHA). Through its Reverse Mortgage Stakeholder Working Group, AARP has provided feedback to the Department of Housing and Urban Development on proposed updates to FHA's Home Equity Conversion Mortgage program. These updates will help protect consumers while ensuring that older Americans have access to this important financial product.

Overall, AARP's work in the area of reverse mortgages demonstrates its commitment to providing older Americans with affordable, sustainable financial products that are designed to meet their needs as they transition into retirement. By advocating for better consumer protections and policies that promote responsible use of reverse mortgages, AARP is helping seniors maximize their retirement income and achieve financial security in old age.

AARP Works To Protect Reverse Mortgage Borrowers

AARP works daily to protect reverse mortgage borrowers from unfair or predatory practices by lenders and brokers. AARP also advocate for policies and laws that help older Americans use their home equity wisely while making sure they remain protected against foreclosure or eviction if they fall on hard times.

AARP believes that everyone deserves to live a comfortable retirement. That’s why AARP works hard every day to protect reverse mortgage borrowers from unfair or predatory lenders and brokers while also advocating for policies and laws that help seniors use home equity wisely.


Q.1 Does AARP offer reverse mortgages directly?

-> Yes, AARP does offer reverse mortgages directly through its Home Equity Conversion Mortgage program. This type of mortgage allows senior citizens to borrow against the value of their homes without having to repay the loan until they move out or pass away.

Q.2 Does AARP recommend reverse mortgages?

-> Reverse mortgages are a type of financial product that allows homeowners to tap into the equity in their home, even if they have already paid off their mortgage. AARP recommends considering this kind of loan carefully before deciding whether or not it is right for you.

Q.3 Does AARP endorse reverse mortgage lenders?

-> AARP does not endorse any specific reverse mortgage lenders. However, the group recommends that consumers consider only reputable companies when choosing a lender. To ensure that your lender is reputable, AARP suggests reviewing online reviews and asking for references from family or friends who have used the company's services in the past. Additionally, you should always take care to read all of the fine print before signing any contract with a lender, as you may be responsible for certain fees and other charges that you didn't anticipate. Contact us today so we can guide you more about it[Contact form link to phone number to be pasted].

Q.4 What is AARP's involvement with reverse mortgages?

-> Overall, AARP is committed to helping older adults achieve financial security, and reverse mortgages are just one tool that it advocates for in this effort.

Q.5 What Lawsuit did AARP have with HUD?

-> AARP filed a lawsuit against the Department of Housing and Urban Development (HUD) to protest the use of aggressive marketing tactics by for-profit companies that targeted seniors in HUD-supported housing. The AARP argued that these tactics were misleading and deceptive and that they targeted seniors who might be vulnerable to these deceptive tactics, putting them at risk of losing their homes. They also claimed that these practices were in violation of laws designed to protect elderly people from exploitation and fraud, including the Fair Housing Act and the Age Discrimination Act. The lawsuit was ultimately successful, with HUD agreeing to end its use of aggressive marketing tactics and to pay a settlement to AARP. The case was seen as a significant victory for seniors and for other vulnerable groups who are often targeted by deceptive marketing practices. The lawsuit highlighted the importance of protecting vulnerable populations from unfair or deceptive treatment and also demonstrated that groups like AARP can be powerful advocates for the rights of seniors.​ Overall, the AARP's lawsuit against HUD was a major victory that helped to protect seniors and other vulnerable groups from deceptive marketing practices. Through their efforts, they were able to successfully end these practices and achieve justice for their members.