CFPB Targets Reverse Mortgages

CFPB Report to Congress on reverse mortgages recently issued indicates that the reverse mortgage industry should expect more scrutiny and regulation from the CFPB.  Among the CFPB’s  key findings in the report is that  existing disclosures and available counseling may not sufficiently protect borrowers and  “stronger regulation, supervision of reverse mortgage companies, and enforcement of existing laws may also be necessary.”

The CFPB also posted on its website a new four-page CFPB Consumer Guide on reverse mortgages and updated the answers to common reverse mortgage questions posted on its website.

The CFPB has also issued a notice and request for information on topics identified in the study as warranting further research “to help determine if additional consumer education or regulatory action is needed.”