Last year, over 132,000 reverse mortgages were made. This is 10 times the amount from 10 years ago and 50% more then last year. Reverse mortgage loans assist those strapped for cash, genuinely retirees, to obtain extra money to help pay living expenses, home improvements, other debts, etc.

Of course, these actions are not without potential problems, one should definitely check into whether this should truly be an option for them. There can be a loan-origination fee that could be as high as $7,000 if your home is near the $500,000 home. This makes salesmen want to jump on getting you on board, regardless of whether or not a reverse mortgage is in your best interests.

A hearing was held in December by the Senate Special Committee on Aging, and the Financial Industry Regulatory Authority (FINRA) sent out an investor alert in March. This comes as a result of many ill advised reverse mortgages made, as well as several law suits and potential class action suits to be made. Financial Freedom, a large reverse-mortgage, spoke out against several alleges against them, saying their company "does not sell, require, promote or recommend annuities to reverse-mortgage borrowers."