CFPB Publishes Reverse Mortgage Guide for Consumers

In conjunction with its 200-plus-page report on the reverse mortgage industry, released last week, the Consumer Financial Protection Bureau has also published a reverse mortgage guide for consumers, now available on its website.

Currently on the bureau’s homepage, consumers are encouraged to find out more about reverse mortgages through the online guide, which can be viewed as a pdf. 

“Considering a reverse mortgage?” the text asks. “A reverse mortgage is a special type of home loan that allows older homeowners to access the equity they have built up in their homes now, and defer payment of the loan until they pass away, sell, or move out of the home.”

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The guide includes basic product information along with questions consumers should consider such as “Are the borrowers the only people who live in the home?” and “Do I plan to remain in my home for a long time?”

It also covers different product options and payment options and reminds potential borrowers that counseling is a required step in the reverse mortgage process. 

The agency’s in depth study last week also prompted consumers and the public to provide additional information about their reverse mortgage experiences. View the request for information

View the consumer guide

Written by Elizabeth Ecker