AARP To Monitor "Free Lunch" Seminars

10/21/2008

posted by N. Sioris

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If you have been reading our newsletters and blog postings during the past year, you will not be surprised to hear about a new effort being waged by AARP to ward off scammers that are out to take advantage of seniors that attend so called, "free-lunch" seminars.

Back in January of this year we posted an article on our Reverse Mortgage News Blog entitled: "There Is No Such Thing As A Free Lunch." In that article we warned that if you are being offered a free lunch or dinner in exchange for attending a financial seminar, you must keep in mind that there are going to be strings attached to that "free meal." If you missed the article in January, you can read it by clicking here.



AARP Takes An Active Role

The latest effort announced by AARP's Free Lunch Seminar Monitor program, is collaborating with state securities regulators to monitor "free-lunch" seminars given by financial product providers. According to AARP spokeswoman, Alejandra Owens, this program is the "first big nationally organized push that allows the organization to keep tabs on what's being sold, and how, at financial seminars for older investors."

AARP is asking its' members that attend a free-meal seminar to complete a checklist about the seminar. The checklist asks what particular products were mentioned specifically at the seminar. For example: annuities, insurance, living trusts, reverse mortgages and long term care insurance.

Members return this information to AARP, which in turn forwards the checklists to state regulators. According to Ms. Owens, this is a way for members to protect themselves.

In a news release, Jean Setzfand, the director of financial-security outreach for AARP stated that "AARP also hopes the monitoring program will deter scammers."


The Recent Housing Bill Called For a "Firewall"

Again, if you are a regular subscriber to our newsletter or blog, you may also recall that we have written quite a few articles announcing the new amendments to the housing bill passed in July that affect FHA insured HECM reverse mortgages. As part of the bill, HUD mandated that a "firewall" be established between providers of reverse mortgage loans, and providers of insurance or other financial products.

A person that originates a reverse mortgage loan is not allowed to also sell you any other financial or investment product from the proceeds that you have obtained from your reverse mortgage loan.

As we have stated previously, we congratulate lawmakers that have wisely chosen to make this mandate part of the HECM reverse mortgage loan amendments. All efforts to protect seniors and safeguard this loan product so that it remains a viable financial planning tool, is welcome for those of us that wish to serve the senior community and their families over the long term.

We also give kudos to AARP for its' latest effort to protect seniors and their families from slick sales pitches at "free-meal" seminars.