Letter to the editor: outrageous fees on reverse mortgages

John Ulrich writes: Why didn’t the February 2009 article, The jury is still split on reverse mortgages for income by Jim Connolly, address the absolutely outrageous fees charged to do a reverse mortgage?

I am a mortgage loan officer and recently tried to help my 88-year-old father get a reverse mortgage. With me making “zero,” it still would have cost my father $12,000 to $14,000 to get a 50% LTV (loan-to-value), $150,000 line of credit reverse mortgage.

Why does the Federal Housing Authority need 2 points on a 50% LTV loan for the UFMIP (upfront mortgage insurance premium)? Is this how our Federal Government is helping our seniors? Does President Obama know this is what’s really going on?