Last week, the CFPB simultaneously filed a lawsuit against American Advisors Group (AAG) in a California federal district court and a proposed stipulated final judgment and order to settle the lawsuit. The lawsuit alleged that AAG inflated estimated home values in marketing its reverse mortgage product and made false representations about AAG’s effort to ensure home value information was reliable.… Continue Reading
The CFPB announced that it entered into consent orders with three reverse mortgage companies to settle the CFPB’s allegations that the companies engaged in deceptive advertising in violation of the Mortgage Acts and Practices-Advertising Rule (Regulation N) and the Consumer Financial Protection Act. Each of the consent orders requires payment of a civil money penalty to the CFPB.… Continue Reading
The report is entitled “A close look at reverse mortgage advertisements and consumer risks.” In conducting its study, the CFPB interviewed 59 homeowners age 62 and older in focus groups and in one-on-one interviews in Chicago, Los Angeles, and Washington, D.C. … Continue Reading
The CFPB has issued a “Snapshot of reverse mortgage complaints” covering complaints submitted to the CFPB from December 2011 (when the CFPB began accepting consumer complaints on reverse mortgages) through December 2014.
According to the report, the CFPB handled approximately 1200 reverse mortgage complaints during that period. The issues those complaints involved and the percentage of such complaints that dealt with each such issue were as follows: problems when unable to pay (38%), making payments (32%), applying for the loan (18%), signing the agreement (10%) and receiving a credit offer (3%).… Continue Reading
The CFPB has announced that it has updated its reverse mortgage guide to reflect recent product changes. The changes concern the amount of money a borrower can draw in the first year and the ability of a non-borrowing spouse to continue to live in the home after the spouse who signed the loan passes away.… Continue Reading
In a March 14 post on the CFPB’s blog, Skip Humphrey, who heads the CFPB’s Office of Older Americans, reported on his meeting with Illinois bank regulators and other Illinois officials to discuss the state’s efforts to combat financial elder abuse. Mr. Humphrey noted that Illinois recently enacted a law that requires employees of state banks and other state financial institutions to receive training on how to recognize signs of such abuse.… Continue Reading