House Offer for Financial Reform Bill Includes Reverse Mortgage Provision

When members of the Senate and House Conference Committee meet on Tuesday to discuss the Wall Street reform bill, reverse mortgages will be a topic of discussion.

According to the House offer published by US Representative Barney Frank, chairman of the House Financial Services Committee, it has accepted the Senate’s proposal to house a new consumer protection bureau at the Federal Reserve as part of a package of changes to be debated according to Steve Adamske, spokesman for the Massachusetts Democrat.

Under the Senate plan, the Bureau would have independent authority to write and enforce rules about consumer lending in mortgages, credit cards and other financial products while being housed at the Fed.

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The offer from the House adds a provision directing the Bureau to issue regulations on reverse mortgages.  The proposal requires the Bureau to conduct a study on reverse mortgages within one year to determine whether conditions or limitations on the transactions are necessary.  This includes whether it’s necessary or appropriate to protect borrowers who obtain a reverse mortgage for the purpose of funding investments, annuities, and other investment products.

The Bureau may also provide integrated model disclosures for reverse mortgages, consistent with requirements under the Truth in Lending Act and Real Estate Settlement Procedures Act according to documents published on Monday.

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  • I find it interesting that Congress thinks if you are 62+ you no longer have the capability to make good decisons. I am 61 and am outraged that the federal government may have the authority to tell me whether I may or may not have a reverse mortgage

    • Yeah, I agree with that and then there is the matter that many of the worst financial products offered to seniors who get reverse mortgages are regulated by the state insurance commissioners. What jurisdiction is the Congress able to give the bureau exactly that overrides the state's authority? I feel sometimes like John Adams with the Continental Congress: “Is anybody there? Does anybody care? Does anybody see what I see?”

  • This frightens me. This is exactly what we do NOT need. I am very much against the Federal Regulatory Reform bill as it is written in its present form.

    The new consumer protection bureau, which is part of the bill is going to be disastrous to the mortgage lending industry. Here again, we have bureaucrats on a committee that know very little about what they will be making decisions on. The issues they will be dealing with will be critical issues affecting the lending world.

    I am amazed at all the regulations and changes coming down on the American people. I am amazed at the changes, new regulations, and new committees coming into play in the reverse mortgage industry. The lack of experienced people perpetrating all of this on our senior citizens is criminal.

    What will happen to us, the one's who are in the field we are in because we love our work and our seniors? You can't tell me we were not more regulated four (4) years ago! We have so many regulations that have popped up over the past 18 months that no one can keep tract of them, much less having them enforced.

    This infuriates me, what is even more devastating is that we are helpless to do anything about it. Real sad my friends.

    Thanks,

    John A. Smaldone

  • This frightens me. This is exactly what we do NOT need. I am very much against the Federal Regulatory Reform bill as it is written in its present form. rnrnThe new consumer protection bureau, which is part of the bill is going to be disastrous to the mortgage lending industry. Here again, we have bureaucrats on a committee that know very little about what they will be making decisions on. The issues they will be dealing with will be critical issues affecting the lending world.rnrnI am amazed at all the regulations and changes coming down on the American people. I am amazed at the changes, new regulations, and new committees coming into play in the reverse mortgage industry. The lack of experienced people perpetrating all of this on our senior citizens is criminal.rnrnWhat will happen to us, the one’s who are in the field we are in because we love our work and our seniors? You can’t tell me we were not more regulated four (4) years ago! We have so many regulations that have popped up over the past 18 months that no one can keep tract of them, much less having them enforced.rnrnThis infuriates me, what is even more devastating is that we are helpless to do anything about it. Real sad my friends.rnrnThanks,rnrnJohn A. Smaldone

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