Download this Paper Open PDF in Browser

Complex Decision-Making and Cognitive Aging Call for Enhanced Protection of Seniors Contemplating Reverse Mortgages

66 Pages Posted: 25 Jun 2014  

Debra Pogrund Stark

The John Marshall Law School

Jessica M. Choplin

DePaul University

Joseph A. Mikels

DePaul University

Amber Schonbrun McDonnell

The John Marshall Law School

Date Written: June 17, 2014

Abstract

This article explains what reverse mortgages are and how they work. It also analyzes who could potentially benefit from them, but why this type of loan is so problematic for many seniors. The article then considers steps that can be taken to improve the effectiveness of current federal rules and counseling protocols to enable seniors to make well-informed decisions keeping in mind cognitive barriers and the complicated nature of this loan product.

Because many seniors may not be noticing the high costs associated with federally insured reverse mortgages, many believe these loans are now the product of choice for “predatory lending.”

Keywords: Consumer protection, reverse mortgages, cognitive psychology

JEL Classification: K00

Suggested Citation

Stark, Debra Pogrund and Choplin, Jessica M. and Mikels, Joseph A. and Schonbrun McDonnell, Amber, Complex Decision-Making and Cognitive Aging Call for Enhanced Protection of Seniors Contemplating Reverse Mortgages (June 17, 2014). Arizona State Law Journal, Vol. 46, 2014. Available at SSRN: https://ssrn.com/abstract=2455979

Debra Pogrund Stark (Contact Author)

The John Marshall Law School ( email )

315 South Plymouth Court
Chicago, IL 60604
United States

Jessica M. Choplin

DePaul University ( email )

United States
773-325-2052 (Phone)

HOME PAGE: http://condor.depaul.edu/~jchoplin

Joseph A. Mikels

DePaul University ( email )

1 East Jackson Blvd.
Chicago, IL 60604
United States

Amber Schonbrun McDonnell

The John Marshall Law School

315 South Plymouth Court
Chicago, IL 60604
United States

Paper statistics

Downloads
170
Rank
147,957
Abstract Views
651