In June 2015, the Consumer Financial Protection Bureau (CFPB) released the results of a study on Reverse Mortgage Advertisements. The study revealed that, generally speakers, consumers were confused about reverse mortgage uses and claims, failed to understand the role of the government, and were left with false impressions about the implied added financial security.
A reverse mortgage is a special type of home loan that allows older homeowners to access the equity in their homes and defer payment of the loan until they die, sell, or move out. Based upon this study, the CFPB issued an ‘advisory’ warning that a reverse mortgage is a home loan, not a government benefit; many companies often don’t provide clear, honest information; and loss of a home is still possible with reverse mortgages.
The CFPB is not taking legal action against any reverse mortgage lender for misleading advertising. However, this should serve as a warning to companies that false, misleading, ambiguous, and overly complicated language in advertising reverse mortgages to the public may lead to legal action.
In this two hour, live Webcast, a panel of distinguished professionals, thought leaders, and practitioners assembled by The Knowledge Group will review and discuss with attendees ways of Ensuring the Veracity of Reverse Mortgage Advertisements and Managing the Firm’s CFPB Compliance.