WASHINGTON, D.C. – The Dodd-Frank Act empowered the Consumer Financial Protection Bureau (the “CFPB”) to initiate regulations designed to protect and educate the consumer as it relates to financial transactions. The CFPB has interpreted this broad authority to include the ability to regulate how financial institutions advertise various loan products.
The CFPB released a report in June specifically detailing their concerns with reverse mortgage advertisements. According to the report, the CFPB is concerned that important loan requirements are “buried in the fine print” or “not mentioned at all.” This report should catch the attention of any lender originating reverse mortgage loans.
The most striking finding in the report is outlined in bold toward the end of the report. “Lender advertisements undoubtedly contribute to consumers not understanding that taking out a reverse mortgage in their early eligibility years has risks.”
See the full report here: