The Consumer Financial Protection Bureau (CFPB) study that raises questions about reverse mortgage ads was quickly disseminated my mainstream media outlets nationwide following the study’s Thursday release. Headlines regarding reverse mortgages contained words such as “mislead” and “elderly […] lose homes” as of Friday morning.
The report sent ripples through the reverse mortgage community, with many saying the report unfairly characterizes the financial tool. In addition, the survey only included the opinions of about 60 homeowners age 62 and older; the study was based on 97 unique ads found on TV, radio, in print and on the Internet.
As the industry continues to confront stereotypes regarding reverse mortgages, including as being a tool of “last resort,” headlines following the study may have only added to the public’s confusion.
Here are a few of the headlines that followed the CFPB’s release of its study about reverse mortgage advertisements, which the government agency contends are misleading in the report.
- Elderly Could Lose Homes from Reverse Mortgages (CNN Money)
- CFPB Warns About Reverse Mortgage Ads (CBS Money Watch):
- Consumer Watchdog Weighs in on Reverse Mortgages (CNBC):
- US Regulators Warn: Ads for Reverse Mortgages Can Mislead (ABC News)
- Study: Reverse Mortgage Ads Confuse Consumers (USA Today)
“The findings raise concerns about marketing of reverse mortgages, loans that a 2011 USA TODAY report found have not saved seniors from defaulting on their taxes and homeowners insurance payments and potentially losing their homes to foreclosure,” wrote USA Today in an article about the CFPB study.
Written by Cassandra Dowell