CFPB Request for Information on Reverse Mortgages and Report to Congress
On June 28, the Consumer Financial Protection Bureau (CFPB) issued a request for information on reverse mortgages. The agency also released a report to Congress regarding its research on reverse mortgages, as required by the Dodd-Frank Act. The CFPB has rulemaking authority to implement federal consumer financial laws, including the Truth in Lending Act and the Real Estate Settlement Procedures Act, on reverse mortgages.
Also, the agency has authority to regulate practices that are unfair, deceptive, or abusive. As part of its ongoing study of reverse mortgages, this request for information is focused on the: 1) factors influencing consumer decisions; 2) consumer use of reverse mortgage proceeds; 3) longer-term outcomes for reverse mortgage borrowers; and 4) market dynamics and business practices among the broker, correspondent, and retail channels. The Credit Union National Association (CUNA) continues to work with our Consumer Protection Subcommittee on mortgage-related issues, and will be providing a regulatory comment call shortly.