Reverse Mortgage Solutions ComplaintsOther Mortgage Solutions Complaints
The CFPB publishes a Reverse Mortgage Congress Message and requests further information on these offerings.
The Dodd-Frank Act obliged CFPB to carry out a reverse mortgage survey, i.e. a mortgage loan that allows older house owners to draw on the capital in their home without receiving payment on a month to month basis. Results of the survey peaked in a report to the Congress published by CFPB on June 28, 2012, which can be found at http://www.consumerfinance.gov/reports/reverse-mortgages-report/.
During the design of the CFPB survey, the aims of the CFPB were (1) to make available a relevant resources on reverse mortgage product, consumption and marketing; (2) to identified and assessed issues of concern to protect consumer interests; and (3) to examine open issues and publicly updated information to take account of new circumstances in the marketing environment. In the report presenting the results of the survey, the following main results were noted:
Reverse mortgage lending is complicated and hard for the consumer to comprehend; (2) Reverse mortgage lending is a different way of using credit than in the past, increasing consumer risk; (3) Reverse mortgage lending is a different way of using credit than in the past, which increases consumer risk; (3) There are also consumer risk inherent in the characteristics of the reverse mortgage, as well as consumer risk associated with the characteristics of the mortgage, and in the marketplace and sectoral practice; (4) advice which, while helping the consumer to better appreciate the risk associated with reverse mortgage lending, needs to be improved in order to address these issues; and (5) some consumer risk appears to have been appropriately dealt with by regulations, but remains a concern of the consumer.
There was also a notice and a request for information to collect information from the authorities on follow-up issues concerning reverse mortgage loans. CFPB seeks consumer insight into the most important consumer drivers when considering a reverse mortgage, the way consumer use reverse mortgage income, the longer run results of reverse mortgage lenders, and certain practice that may vary according to the nature of the transaction the reverse mortgage offers.
It is significant because the Dodd-Frank Act empowers the CFPB to adopt provisions it deems necessary or appropriate to achieve the objectives of the Act as a consequence of the reverse mortgage survey. CFPB also has the power to monitor non-bank reverse mortgage lending entities and major custodians and cooperative banks for adherence to federally enacted legislation to protect consumers' finances.
CFPB has pointed out that the results of the survey identify several areas where they can be used to help safeguard customers from the risk of reverse mortgage origination and to help them make better reverse mortgage choices. 1 ) adopt legislation under federally enacted legislation on consumption specifically aimed at safeguarding those who consider reverse mortgage lending; 2 ) devise enhanced ways of engaging and enabling those who consider reverse mortgage lending to make better educated choices; 3 ) monitoring the markets for dishonest, misleading or improper practice and adherence to current legislation; 4 ) receive complaints from users and work to address these complaints; and 5 ) work with the Housing and Administration Department to address these complaints.