CFPB Blasts Reverse Mortgages As ‘Difficult’ To Understand

Posted by Orb Staff on June 28, 2012 No Comments
Categories : Residential Mortgage

11891_cfpb CFPB Blasts Reverse Mortgages As 'Difficult' To Understand The Consumer Financial Protection Bureau (CFPB) is taking aim at the reverse mortgage sector with a new report that blasts the product as being ‘complex’ and ‘difficult for consumers to understand.’

In a report issued to Congress, the CFPB says that reverse mortgage providers engage in ‘deceptive marketing’ and that consumers are ‘increasingly using reverse mortgages in ways that are different from what was intended.’

‘We have submitted a notice and request for information to gather public input on follow-up questions about reverse mortgages,’ says Megan Thibos, presidential management fellow at the CFPB. ‘We are seeking feedback on the factors most important to consumers when they are considering a reverse mortgage, the way consumers use reverse mortgage proceeds, the longer-term outcomes of reverse mortgage borrowers, and certain practices that may differ depending on the type of business that is offering the reverse mortgage.’

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