Do you think reverse mortgages should receive more regulatory oversight?
- Yes. (66%, 31 Votes)
- No. (34%, 16 Votes)
Total Voters: 47
Share your experience with reverse mortgages with other readers in the comments section below.
What do you know about reverse mortgages? The Consumer Financial Protection Bureau (CFPB) wants your knowledge to help them draft new regulations governing this potentially volatile loan product.
The CFPB is seeking information from the public on:
- factors influencing consumers’ decisions to get a reverse mortgage;
- how consumers use reverse mortgage proceeds;
- long-term outcomes to reverse mortgage borrowers; and
- the market dynamics and business practices between brokers, correspondents and retail loan officers of reverse mortgages.
Comments must be received by August 31, 2012 to ensure inclusion in the CFPB’s study. To submit a comment, visit the electronic submission site, or mail to:
Office of the Executive Secretary
Bureau of Consumer Financial Protection Bureau
1700 G Street NW.
Washington, DC 20552
first tuesday take
Reverse mortgages are for homeowners aged 62 or older who have either paid off all or a significant amount of their mortgage. These senior homeowners are able to convert their home equity into cash for use as income during their retirement years.
Due to the nature of the loan and the demographics taking out reverse mortgages, predatory lenders have exploited borrowers of reverse mortgages in the past, charging astronomical fees and misleading borrowers.
The CFPB isn’t the only one cracking down. California Assembly Bill 2010, if passed, would require reverse mortgage pre-counseling to be performed in person.
Stricter regulations over reverse mortgages would be a good thing –help the CFPB decide just how much regulation should be required by submitting your comments to the CFPB.
Re:Consumer Use of Reverse Mortgages from the Consumer Financial Protection Bureau