Common reverse mortgage complaints — and exactly where to file one

What is a reverse mortgage complaint?

The five complaints we see most — and how to prevent each

1. “The balance grew faster than I expected.” Interest and mortgage insurance premiums accrue on the drawn balance. Prevention: ask for the amortization projection at several ages and draw scenarios before you sign, and consider a line of credit instead of a full lump sum if you do not need all the funds now.
2. “Nobody told me I still had to pay taxes and insurance.” Every reverse mortgage requires the borrower to keep paying property taxes, homeowners insurance, any HOA dues, and required maintenance, and to live in the home as a principal residence. Prevention: budget those charges, and discuss whether a set-aside makes sense.
3. “My spouse wasn't on the loan and now they're at risk.” Non-borrowing spouse status must be identified and documented correctly at application. Prevention: raise it at the very first conversation and confirm the Eligible Non-Borrowing Spouse determination in writing.
4. “My heirs couldn't get a payoff figure in time.” Servicing delays around payoff and property disposition are a recurring theme. Prevention: tell your heirs the loan exists, keep the servicer's contact information with your estate documents, and have them request the payoff in writing early.
5. “The mailer looked like it came from the government.” Official-looking mailers and urgency tactics are a marketing red flag. Prevention: verify any company and loan officer on NMLS Consumer Access before responding.

Where to file, by issue type

• Lender, broker or servicer conduct — Consumer Financial Protection Bureau complaint portal at consumerfinance.gov.
• HECM-specific program or servicing issues — HUD's FHA Resource Center.
• Deceptive or misleading advertising — Federal Trade Commission at reportfraud.ftc.gov.
• Florida licensees — Florida Office of Financial Regulation.
• Colorado licensees — Division of Real Estate, Colorado Department of Regulatory Agencies.
• License verification for any company or loan officer — NMLS Consumer Access.

This page is general consumer information, not legal advice. For losses or a dispute involving your home, speak with an attorney.

Reverse mortgage complaints — FAQ

What are the most common complaints about reverse mortgages?

The complaints that appear most often involve surprise about how fast the loan balance grows, confusion over property tax and insurance obligations, difficulty for heirs or a surviving spouse after the borrower dies, servicing and payoff problems, and aggressive or misleading marketing.

Where do I file a reverse mortgage complaint?

You can submit a complaint to the Consumer Financial Protection Bureau, to HUD's FHA Resource Center for HECM-specific issues, to the Federal Trade Commission for deceptive advertising, and to your state mortgage regulator. In Florida that is the Office of Financial Regulation; in Colorado it is the Division of Real Estate within DORA.

Can I complain about my loan servicer?

Yes. Servicing complaints — misapplied payments, escrow or property-charge issues, payoff statement delays, or poor communication with heirs — can go to the CFPB and, for a HECM, to HUD's FHA Resource Center.

What if a surviving spouse is being told to leave the home?

Get the loan documents reviewed immediately. Federal rules include protections for an Eligible Non-Borrowing Spouse that can allow them to remain in the home under specific conditions. If the servicer is not honoring those protections, that is a complaint issue and often a legal one — contact a HUD-approved housing counselor and consider an attorney.

Are reverse mortgage scams common?

Fraud attempts do occur, usually as contractor schemes, investment pitches that pressure a borrower to take proceeds and buy a product, or fake government-sounding mailers. Any offer that claims a government affiliation or pressures a fast signature is a warning sign.

How do I avoid the most common complaints?

Read the amortization projection before you sign, understand that the balance grows with interest and premiums, budget for property taxes and homeowners insurance, name and document any non-borrowing spouse correctly, and tell your heirs the loan exists and how payoff works.

Does filing a complaint hurt my loan?

Filing a complaint with a regulator is a consumer right and does not cancel or accelerate your loan. Continue meeting your obligations — including property charges — while the complaint is reviewed.

Is a complaint the same as a lawsuit?

No. A regulatory complaint asks a government agency to review conduct. A lawsuit is a court proceeding. For serious losses, speak with an attorney; a complaint and legal advice are not substitutes for each other.

Keep learning about reverse mortgages

• Reverse mortgage scams

  Fraud patterns and warning signs.

• Pros and cons

  Honest trade-offs with break-even math.

• Non-borrowing spouse

  Eligible vs Ineligible NBS protections.

• Heirs and non-recourse

  What happens to the home at payoff.

• Choosing a lender

  How to compare and verify companies.

• Get my estimate

  See a personalized estimate in minutes.

Where we're licensed — local guides

• Florida reverse mortgage guide

  Statewide HECM rules and OFR oversight.

• Colorado reverse mortgage guide

  Statewide HECM rules and DORA oversight.

• Miami, FL

  Miami-Dade condo FHA approval and HECM.

• Naples, FL

  Collier County HECM scenarios.

• The Villages, FL

  Active-adult HECM scenarios.

• Denver, CO

  Front Range HECM scenarios.

References & sources

Every statistic, program rule, and regulatory claim on this page is sourced from the primary U.S. government agencies and industry bodies listed below. We never source program facts from competing brokers, blogs, or unverified secondary sources.

1. CFPB — Reverse Mortgages
2. FTC — Reverse Mortgages
3. HUD — HECM Program
4. NMLS Consumer Access

Source links are maintained by Simply Approved Mortgages and verified periodically. Federal program rules can change — always confirm current-year specifics with HUD, the CFPB, or a HUD-approved counselor before acting on any information on this page.