Rev. Pat Robertson Cons Elderly Out Of Homes (Video)
By Gloria Christie on January 28, 2015
But television stardom isn’t the only mutual factor between them. What these three men have in common is they are all TV hawkers for reverse mortgages. Thompson and Henry “Fonzie” Winkler pop up in duplicitous advertisements in the wee hours of the morning. But Robertson uses reverse mortgages to directly prey on the elderly.
What Is A Reverse Mortgage?
A reverse mortgage lets retirement-aged (at least 62 years old) home owners take the equity out of their house, pay a ton of fees, and live without a house payment. They can remain there until everyone dies.
Why Does Robertson Want Reverse Mortgages?
So why would Robertson encourage retirees to hock their homes? He wants the elderly listeners to pay off their dues in his “700 Club” teleministry.
Take a look at the recent Jan. 27 video here:
What Does A Reverse Mortgage Cost?
The banker sells the house and recoups his money, plus the interest and loan insurance charged to the home owner. The purpose of loan insurance is to protect the bank in case the house drops in value.
Oh, and then the senior citizen pays the fees that banks charge for giving them their own money every month (disbursement fees). Of course, the older person pays closing costs and the application fees.
And let’s not forget the points – each is a percentage of the loan. This very significant cost increases the banker’s return on his investment.
How Does Robertson Con Listeners?
The woman he was advising was 67 but still working, because her Social Security didn’t stretch far enough to cover her basic living expenses. Of course, if she had Robertson’s $240 (or higher) dues money, maybe she could get by without giving up her children’s inheritance.
The Rev told the woman:
“You don’t have to pay it off, but somebody has to pay it off, namely the United States taxpayer,” Robertson continued. “So, it’s not a good deal for the taxpayers, but for most people it’s a pretty good deal.”
Robertson pointed out that a reverse mortgage prevented the bank from taking “your house away from you as long as you are alive and live in it.”
Of course, Robertson is lying. It is an exceptionally good deal for the bankers. They get the interest, the myriad of fees, and they get the house if the residents die tomorrow.
Robertson’s Chairman’s Circle membership dues are $10,000 per year.
Way to go, preacher man. Con the elderly and the poor.