Basement-Dwelling Millennials Beware: Reverse Mortgages May Evaporate Your Inheritance  | WHAT REALLY HAPPENED


Basement-Dwelling Millennials Beware: Reverse Mortgages May Evaporate Your Inheritance 

With nearly 90% of millennials reporting that they have less than $10,000 in savings and more than 100 million Americans of working age with nothing in retirement accounts, we have bad news for basement-dwelling millennials invested in the "waiting for Mom and Dad to die" model: reverse mortgages are set to make a comeback if a consortium of lenders have their way, according to Bloomberg.

Columbia Business School real estate professor Chris Mayer - who's also the CEO of reverse mortgage lender Longbridge Financial, says the widely-panned financial arrangements deserve a second look. Mayer is a former economist at the Federal Reserve of Boston with a Ph.D. from MIT.

In 2012, Mayer co-founded Longbridge, based in Mahwah, New Jersey, and in 2013 became CEO. He’s on the board of the National Reverse Mortgage Lenders Association. He said his company, which services 10,000 loans, hasn’t had a single completed foreclosure because of failure to pay property taxes or insurance. -Bloomberg

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