Last week was a busy one for the Consumer Financial Protection Bureau (CFPB), which took aim at the reverse mortgage industry in several ways, discusses Shannon Hicks in this week’s Reverse Focus podcast.
The federal agency issued an advisory last Monday, outlining three steps consumers should consider when looking at a reverse mortgage, an action that arrived on the same day as a report highlighting consumer complaints against reverse mortgages.
Some of the top complaints included consumers’ frustrations with not being able to change loan terms as well as problems communicating with loan officers.
In response, the CFPB’s advisory suggested consumers, before getting a reverse mortgage, verify who is on the loan, plan ahead for the non-borrowing spouse, as well as plan for any non-borrower family members living in the home.
Also discussed, more retirees will lean on their home equity as a source of wealth for their retirement, according to a recent Federal Reserve survey on consumer finances. However, the potential to tap home equity could be mitigated by mortgage balances, as 63% of households in their early 60s continue to have a mortgage.
Lastly, the CFPB took aim at former top-15 reverse mortgage lender New Day Financial, alleging the company took part in deceptive mortgage advertising and kickbacks. New Day is expected to pay $2 million in civil penalties for the violations, according to the CFPB.
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- CFPB issues tips for reverse mortgage borrowers.
- Retirees tapping home equity for source of wealth.
- CFPB takes aim at reverse mortgage complaints.
- New Day Financial pegged by CFPB for deceptive advertising.
Listen now. “Reverse Focus is the ultimate resource for reverse mortgage professionals providing the technology, training and marketing to grow your business. We are your one-stop resource for those committed to taking their business to the next level.” Editor’s Note: These posts are sponsored by Reverse Focus.
Written by Jason Oliva