Reverse Mortgage Industry Makes New “Pledge” To All Borrowers

NRMLA has launched a new initiative for all its reverse mortgage lender-members to implement in the coming weeks. The new effort, coined a “Pledge to Borrowers,” restates NRMLA members’ commitment to working with borrowers in a way that’s representative of the association’s code of ethics and conduct.

The Pledge is the result of work by an appointment six-member NRMLA committee who reached out to CRMPs and NRMLA’s ethics committee chairs, servicing companies and closing companies. Approved by NRMLA’s board in a unanimous vote last week, the pledge will go out to membership this week to be signed.

While companies are not required to distribute the Pledge to borrowers, they are encouraged to use the Pledge as a consumer-facing tool.

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“Lenders are welcome to take our version and put it in their own formats, or on their websites in whatever style they’d like,” says Marty Bell, director of communications for NRMLA. Lenders cannot change the language, however.

The Pledge is the core of the Borrow With Confidence campaign, a borrower-facing campaign NRMLA has launched within the industry through a new website and other consumer-facing tools, Bell says.

“We haven’t really launched publicly,” he says. “This is the last step before we roll it out to the public.”

The pledge can be found on NRMLA’s Borrow With Confidence website and includes a commitment for lenders to comply with all government regulations associated with reverse mortgages, as well as host of other commitments such as explaining all terms, informing borrowers of their responsibilities, recommending professional advice for those receiving SSI, Medicaid or other government benefits, and others.

Written by Elizabeth Ecker

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