Reverse Mortgage AmericaBackward Mortgage America
CFPB also surveyed 60 home owners 62 years and older in one-on-one and focal groups in Chicago, Los Angeles and Washington, D.C. The survey found that advertisements could not track interest rate or disguise interest rate in small print. 25 percent of the respondents were in the small paper. There are some consumer misunderstandings that reverse mortgage are actually loan with charges and compound interest.
Some others felt that because the cash they got was backed by their own funds in the home, it was not a credit they had to fulfill. CFPB's research found that some ads imply citizenship, giving the homeowner the false sense that they were receiving protection that was not available.
Cordray, in preparing comments on the warning and the consumers' reports, noted that in February, the Bureau filed a lawsuit with the Federal Trade Commission against three mortgage banks for execution of a claim that showed an elder similar to the Great Seal of the United States in their "GOVERNMENT LENDING DIVISION" advertisements.
Wrong perceptions about the pecuniary safety of older people and their capacity to remain in their houses for the remainder of their careers have also worried the Bureau. Corresponding to the research results, many of the adverts proposed that an inverted mortgage offers monetary safety for the rest of a consumer's lifetime.
However, the CFPB warned that reverse mortgage advertisements often do not mention extra charges, such as land tax and household contents charges, which could compromise a homeowner's ability to maintain or even result in enforcement. Click here to view the CFPB report. Click here to view the consumers notice.