FBI Issues Scam Warning for Home Equity Conversion Loans:
FBI ISSUES HECM LOAN SCAM WARNING
The FBI has issued a scam warning for those interested in Home Equity Conversion Loans (or HECM loans for short). With increased interest in HECM loans, both conventional loans and FHA guaranteed loans, fraud activity has also increased. FHA HECM loans offer buyers the advantage and safety of stricter controls and licensing requirements for FHA approved lenders, but some scams operate outside the areas FHA rules can protect the borrower.
If you suspect you or your family have been targeted by a reverse mortgage scam artist, file a complaint with the Department of Housing and Urban Development by calling 1-800-347-3735.