The Fraud Bulletin was published in response to the recent criminal conviction of Mark Diamond, a Chicago-based contractor who orchestrated a home repair and reverse mortgage fraud scheme dating back to the early 2000s.
The OIG warned consumers to
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Be skeptical of unsolicited advertisements, phone calls, emails, or in-person solicitations offering easy money for urgent repairs using their home equity; and
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Beware if someone approaches them and offers home repair services where the homeowner doesn’t have to pay for the work directly.
The bottom line: Fear of fraud should not deter seniors from accessing reverse mortgages as an important financial resource. To protect themselves, seniors can take simple steps to avoid reverse mortgage scams by contractors.
What they’re saying: “NRMLA applauds the HUD OIG’s efforts to protect and educate consumers from predators like Mark Diamond,” says NRMLA President Steve Irwin.
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“The vast majority of people who offer reverse mortgages uphold high standards of ethical and professional behavior. Furthermore, in its Bulletin, the OIG referred to reverse mortgages as ‘an important financial resource through which homeowners aged 62 and older can borrow against the equity in their home.’ The program itself is not being questioned, but rather the criminal behavior of one bad actor.”
