Posted on 08/25/2010 12:55:22 PM PDT by luckybogey
This sleazy ad has been on cable news all day. Former presidential candidate and country bear Fred Thompson wants old people to get "Absolutely FREE," government-backed reverse mortgages. What do we know about this shady company Thompson is endorsing?
...Oh right, and they're government-backed! That's how investors get paid. (Fred Thompson, a true Fiscal Conservative, makes a big point of this "full government backup" in his terrible ad.)
Reverse mortgages are available to homeowners who are 62 years old or older and own their homes outright or have a substantial amount of home equity, according to the HUD site. The vast majority of reverse mortgages are insured by the Federal Housing Administration, through the Home Equity Conversion Mortgage (HECM) program.
The reduced fees on reverse mortgages are a result of another important industry development: investor demand for securities backed by those mortgages, Bell said. These securities are backed by Ginnie Mae, based on a reverse mortgage insured by the FHA, he said, and with that combination, "you have a very secure investment."
But would ex-Senator Fred Thompson, America's most trustworthy conservative political figure, endorse financial products from a company of sleazy repute?
It just so happens that this company, American Advisors Group, was sued by Illinois Attorney General Lisa Madigan in February:
Attorney General Lisa Madigan filed lawsuits against two mortgage brokers for using unfair and deceptive marketing practices to solicit seniors for reverse mortgages.
"These companies used extremely misleading language in their advertising, sometimes even disguising their loans as government benefits that borrowers don't have to repay," said Madigan. Many consumers have reported that they didn't even know these offers were for reverse mortgages or a loan of any kind added Madigan.
(Excerpt) Read more at gawker.com ...
Fred Thompson American Advisors Group (AAG) Commercial for Reverse Mortgage
http://www.youtube.com/watch?v=bkg8IH7e_6U
American Advisors Group Announces Senator Fred Thompson as National Reverse Mortgage Spokesperson
http://rismedia.com/2010-06-15/american-advisors-group-announces-senator-fred-thompson-as-national-reverse-mortgage-spokesperson/
Fred Thompson American Advisors Group (AAG) Commercial for Reverse Mortgage
http://www.youtube.com/watch?v=bkg8IH7e_6U
American Advisors Group Announces Senator Fred Thompson as National Reverse Mortgage Spokesperson
He's just another ac-tor playing a part.
Just another acting job for Fred.
I donated $100... Will not do it again!
Reverse mortgages can actually be a great thing for people.
I also know of the ability to buy people’s life insurance policies. You aughta hear Ed McMahon’s wife talk about it. They were broke, and he was not likely to live more than a few years.
So they have an existing multi-million dollar policy and a company pays them (Ed and his wife) a part of the face value to be the beneficiary. They then make all the payments to keep the policy in force and when he dies, they get the money. It is a real win-win.
It is good for both sides of the situation. The only ones it may hurt are the previous beneficiaries.
I think reverse mortgages can actually be a pretty good thing.
Maybe reverse mortgages are ok for some. I’m not sure! They don’t make a lot of sense to me.
BTW: Fred has a new book...
“Teaching the Pig to Dance”
I never understood this comercial. What’s the difference from an equity loan?
No one is giving money away to anyone unless you are an illegal alien, so this has to amount to an equity loan of some sort.
They sure as hell can be. My Mom made out like a bandit!! With the amount she got, she could buy back her house for cash, and have a bundle left over!!
I sent him $100.
His office sent back a note addressed to a combination of my name and my wife’s name. I still get stuff from the RNC with the same misspelling.
My what big teeth you have, grandma Fred...
Another product of “fiscal” conservatism and the destruction of traditional FAMILY-societal relationships.
Makes the sheeple easier for the Fabian wolves to eat....
I guess the answer for some is to sell the property and move into a old folks home.
Why? It's just capitalism. Sounds like the complaint that JD Hayworth did ads for getting government grants. And now we're stuck with that traitor McCain for another six years.
I’m about convinced that Fred needs to stay to acting and to smacking down Michael Moore and otherwise leave politics alone.
Making those stupid commercials lost him all credibility with me.
But you gotta pay for the usual stuff that homeowners pay for, and I'm over all that.
Still, the accusations Jim Newell makes on the Gawker website are a bit disturbing and raise some questions. I would like to hear Fred Thompson's explanation of this reverse mortgage program and the reasons (besides a paycheck) for his agreeing to be associated with AAG, which seems to have some legal problems.
However, I found Newell's piece to be exceptionally strident, with lots of bombast but little substance, except to make the case that Mr. Newell doesn't like reverse mortgages and thinks Fred Thompson is a sell-out for doing the AAG commercial. I'm not so quick to condemn Fred but I would like to know more than Newell's piece delivers.
It’s not a loan. The bank buys back the equity you own in your house and you are free to do with that money whatever you want. For some seniors, especially those who have no need to pass on their property to an heir, it can give them cash for living expenses they otherwise would have to take from accumulated savings.
Frankly, it is not too cynical to say that a politician, ANY politician, will choose money over ethics whenever facing a choice between the two.
The best definition of a “Fiscal Conservative” is “neither”
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