Pa. Banking Department Tackles Reverse Mortgages

The Pennsylvania Department of Banking recently issued a new statement of policy on reverse mortgages.

KYW's Tony Romeo reports Pennsylvania Banking Department spokesman Ed Novak says the new statement of policy is not the same as new regulations:

"Well, it's not enforceable as a rule, regulation or a law, but it gives people who are doing business in the industry an idea of what's on our minds.  And it may inform them how we could rule if they come in front us regarding any problems."

Novak says the department also wants to get the issue out in front of the public. He says there are advantages to reverse mortgages, but there are drawbacks, including the fact that they are very complicated and that the paperwork and processing fees are more expensive than a traditional mortgage.

People with questions can call 1-800-PABANKS.