Proposed guidelines for reverse mortgages spell out potential pitfalls for homeowners

"They are misled by direct-mail pitches that imply that reverse mortgages are a government benefit, cost relatively little, never need to be repaid, represent income for life and carry no risk. In fact, reverse mortgages often entail high upfront fees and substantial insurance and servicing charges -- well beyond the costs of other financing alternatives that may be available to seniors."