The Consumer Financial Protection Bureau requested information from the public this week on consumer use of reverse mortgages, on the heels of a 200-plus page industry report the agency released Thursday.
Citing consumer confusion among other concerns in the report, the CFPB says that along with the study it conducted as a requirement under Dodd-Frank, it wants to know more still about consumers’ decision making process regarding reverse mortgages.
“To assist its ongoing study of reverse mortgage transactions, the Bureau is seeking detailed information from the public on the factors that influence reverse mortgage consumers’ decision-making, consumers’ use of reverse mortgage loan proceeds, longer-term consumer outcomes of a decision to obtain a reverse mortgage, and differences in market dynamics and business practices among the broker, correspondent, and retail channels for reverse mortgages,” the request for information, published in the Federal Register states.
The bureau is accepting comments via email and mail with a deadline of 60 days after the publication date, July 2.
The request includes specific questions as guidelines for the information such as “What factors are most important to consumers in choosing among products?” and “What are the typical outcomes for borrowers who still have the loan after 5 years or more?”
View the request for more information.
Written by Elizabeth Ecker