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Newspaper Archive of
Pahrump Mirror
Pahrump, Nevada
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April 17, 1997     Pahrump Mirror
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April 17, 1997
 

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Pahrump Valley Gazette, Thursday, April 1-7, 1997 23 Bryan, D'Amato introduce bill to prevent reverse mortgage rip-offs of senior citizens. WASHINGTON, D.C.--Following up on his warning last week to senior citizens in Nevada not to fall for reverse mortgage rip-offs, United States Senator Richard Bryan (D- Nevada) and Banking Committee Chairman Alfonse D'Amota (R-New York) today introduced legislation to protect senior citizens from these scams. "Reverse mortgages provide financial relief for senior citizens who find themselves house rich, but cash poor," Bryan said. "Unfortunately, many seniors have lost thou- sands of dollars to so-called 'estate planners' who target seniors who need extra cash to expense major health care costs or meet basic living needs. Some even go door-to-door offering their services without fully revealing their costs. When the senior goes to close on the loan, that's when they Jcover the outrageous fees charged by these estate planners. Some seniors often don't discover the fees until they start receiving their money and notice they have been short- changed." The bill, the Senior Citizen Home Equity Protection Act, will require those issuing the mortgage to disclose all costs related to estate planning, financial advice or related services. It also clarifies that the Department of Housing and Urban Development (HUD) has the authority to impose restrictions to ensure that those seeking reverse mortgages do not pay excessive costs for obtaining the mortgage, including any costs related to estate planning. Homeowner, 62 years and older are eligible to apply for reverse mortgages and can borrow up to a maximum of $160,950. No repayment of the loan is made while the borrower resides in the home. "Because reverse mort- gages are becoming more popular, scare artists are com- ing out of the woodwork seek- ing to tap into this new mar- ket," Bryan said. "We must take quick action to put a stop to this and protect senior citi- zens who are targeted by these scams." Estate planning services have been known to charge about 6-10 percent of the loan amount for nothing more than putting the borrower in touch with a lender. This amounts to $6,000- $10,000 for a $100,000 loan which the service deducts as a lump sum from the loan. The same information is available from HUD for free. At news conferences in Reno and Las Vegas last week, Bryan, a member of the Senate Banking Commit- tee, warned senior citizens not to fall for these rip-offs and urge them to make a call to HUD first. He also said legislation is needed to fully ensure that seniors receive all the information they need related to the costs of getting a reverse mortgage. "This legislation will mean the scam artists will no longer be able to hide their fees, "Bryan said. "Full dis- closure of the costs and the ability of HUD to prevent excessive fees are important steps to take to protect senior citizens seeking reverse mort- gages." New Deputy to prosecute telemarketing fraud LAS VEGAS--The office of Attorney General Frankie Sue Del Papa announced to- day that Senior Deputy At- torney General Richard C. Linstrom has been named director of the Telemarketing and Consumer Fraud Unit. Linstrom, 40, of the Attorney General's Las Vegas Office, was most recently a prosecu- tor in the Workers' Compen- sation Fraud Unit. He was previously a Deputy Pros- ecuting Attorney and in pri- vate practice in Honolulu, Hawaii. Linstrom has been lead counsel in over fifty jury trials. Linstrom replaces Senior Deputy Attorney General "4argaret Stanish who has ,aken a position with the U.SI Attorney's Office. 727-4144 Va!leYo B!okes 751-2453 Parts, Accessories & Service Quality Tubes $2.59 Airl Tires From $19_.99 8oz Slime $5.75 Complete Tune-Up & Lube ,$30 Redline, GT, DiamondBack, Dyno & Torker es ,o.. -- I NEW All Natural Product qfln. Everyday $7 Haircuts  ,-,v- --, "Senior Specials" Styling Salon Shampoo & Set S7 Nexus [SO Topper Perms (Cut Inc.) S25 Nioxin * Biolage (Inside the Bike Shop ) 7 51 - :301 1 Urgent .... are 24 hours-a-day 7 days-a-week That's all day and all night. The Arcon Pahrump Center for Healthcare is open 24 hours-a-day, every day to provide urgent care for your acute injury or illness. CREAT BASIN DRILLINC & PUMP ?ER\\; ! r censcd & Bonded #30'__.I I I F'ratory. :1 lIl,l I '.P,pSa,, IP.I I I I ,,,,,,,' I !E.L! I i Complete Sytlt [ i111II I Um,*.ed t s rm.  I [warranty availabl, l  l Radi--o D"isp"'atc"'he'd  I 7 days a week se,vioe ii I 1220 E. Manse M III I E. oSeV aLV|l[ I 727-441 w,j L Pahrump Center for Healthcare 1501 E Calvada Boulevard Pahrump, NV 89048 702-727-6060