In recent reverse mortgage news, researchers revealed there’s no reason older Americans should be avoiding reverse mortgages, and a multi-state mortgage servicer was slapped with a lawsuit. The media also continued to shed a positive light on reverse mortgages this week.
As a wrap up to your week, here’s a recap of the most-read RMD articles.
Researcher: No “Rational Reason” to Avoid Reverse Mortgages— A research economist at Boston College’s Center for Retirement Research shared that there’s no reason the public should be avoiding reverse mortgages. There is a lack of understanding, which results in fear for many older homeowners, he shared with RMD.
Ocwen’s Bad Day: CFPB Lawsuit, 20+ State Regulatory Orders—Ocwen Mortgage Servicing, Inc. (NYSE: OCN) was served this week with a federal lawsuit from the Consumer Financial Protection Bureau (CFPB) as well as an action that took away the company’s ability in more than 20 states to take on new mortgage servicing rights.
CNBC: Financial Planners “Remiss” to Not Suggest Reverse Mortgages—A financial advisor, featured on CNBC, advocated for reverse mortgages and shared that the product is one “innovative approach” to protecting older Americans’ portfolios.
Reverse Mortgage Broker’s Years-Long Fight with Mass. AG Comes to Close— The practice of pressuring homeowners into taking out a reverse mortgage to invest in annuities came to light once again after a woman in Massachusetts filed a complaint to the attorney’s general office. The case has come to a close, but not without a fight from the broker who originated the loan.
Startup Could Introduce Reverse Mortgage Alternative—A startup that launched in 2015 as a home equity-extracting company is beginning to see older HECM-eligible consumers as potential clients for the alternative options it offers to a reverse mortgage, which could pose a new threat to established reverse mortgage lenders.
Written by Alana Stramowski