- Consumer Financial Protection Bureau (CFPB) recently released a report entitled A Closer Look a Reverse Mortgage Advertisements and Consumer Risks which discusses its findings regarding the failure of reverse mortgage ads to mention the considerable risks involved in reverse mortgage loans (while extolling their virtues). The CFPB also released a consumer advisory to warn seniors about the potential pitfalls of reverse mortgages.
- A new rule requiring a Three Day Review Period for Mortgage applications submitted after August 1st, 2015 will only apply if certain (3) changes are made before closing: 1. Changes in Annual Percentage Rate (APR); 2) Prepayment terms; 3) Basic loan product changes (i.e. from fixed at adjustable rate). The CFPB has released a factsheet detailing how the new rule functions.
- The Federal Housing Finance Agency unveiled an interactive online map to help “in the money borrowers” identify the opportunity (those eligible for The Home Affordable Refinance Program aka HARP).
Tag Archives: consumer advisory
Tuesday’s Regulatory & Legislative Round-Up
- The Consumer Financial Protection Bureau issued a consumer advisory in the first regulatory action prompted by the results of its reverse mortgage report entitled A Closer Look at Reverse Mortgages. Advertisements often lead retirees to believe that reverse loan offers are part of a government program, do not involve interest and fees and fail to mention or prominently display important details regarding these terms.
- The U.S. Department of Housing and Urban Development (HUD) is seeking comment regarding an expansion of the housing options for Housing Choice Voucher Families. In many regions the rental subsidy is not sufficient to allow renters to live in lower poverty neighborhoods.
- HUD also launched a new website for training housing counseling agencies, with an eye toward improving customer service and counseling skills.
