Sunday, April 24, 2011

Confirmation bias isn't support

"Why, yes, I am a complete gullible fool. I staked my household's principal asset on a bad deal that I did not understand. Although the formality of counseling was required, I really couldn't understand all the fine print, so I was forced to trust that the nice people handing me the loan papers had my best interests at heart."

OK, now, how many people, having committed themselves to a deal, are going to paint themselves as fools by saying anything like this about it -- whether it's true or not?

This question brought on by an item in the Reverse Mortgage Daily here on a study by the irrepressible National Reverse Mortgage Lenders' Association (NRMLA). It excerpts from the study thusly:
"...Nine of 10 current reverse-mortgage borrowers said they were not pressured to take out the loan; 75% said they understood what they were doing either “well” or “very well,” and 77% received professional counseling before deciding to move forward with a reverse mortgage. Among that latter group, 86 percent found the counseling useful..."
Well, I mean, duh. Once they had committed themselves to these deals, what did you expect them to say?

The Daily was working here from a United Feature Syndicate article mistakenly captioned by a Michigan local newspaper "Research refutes reverse-mortgage critics."

Folks, to "refute" an argument is to demolish it. To "rebut" an argument is to counter it. This one is only sketchily working on "rebut." You want to get in the ballpark of "refute," show us something good about the conditions of those borrowers and their extended families after payable-in-full day has arrived.

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