The Dark Side Of Reverse Mortgages

Reverse mortgages, targeted to older homeowners who may be house-rich but cash poor, are a bright spot in housing loans. With financial markets dry for all but the most stellar borrowers, and 77 million baby boomers crossing into retirement, the once relatively obscure loans are becoming commonplace.

But like many of the once-innocent loans that led to the current housing crunch -- such as adjustable-rate mortgages -- reverse mortgages have a dark side. Indeed consumer advocates hear echoes of the subprime lending crisis that has pressed the country into record foreclosures.