Based on the CFPB’s recently issued report to Congress on reverse mortgages, 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.”
In addition to the report, the CFPB has 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.” The CFPB also posted on its website a new four-page consumer guide on reverse mortgages and updated the answers to common reverse mortgage questions posted on its website.
For more information on the CFPB’s report and request for information, read our legal alert.