The American Association of Retired People (AARP) accused the US Department of Housing and Urban Development of violating federal law when it comes to supervising reverse mortgages. AARP believes that the law requires that both spouses stay in the home until both of them have passed away. Brokers sometimes encourage only the older spouse to put their name on the reverse mortgage in order to qualify for a larger payout without fully explaining the consequences to the client. Lenders determine how much a borrower is eligible to receive based on their age. An older borrower would qualify for more money than a younger because the older borrower isn’t expected to live as long. When the AARP filed a lawsuit in Washington D.C., a federal judge ruled that this process of foreclosing on the surviving spouse was not an acceptable outcome for federal mortgages. If you have a reverse mortgage, have an attorney check whether you’re one of those people who could be faced with foreclosure if one spouse dies. Watch the video for more information.