Consumer Financial Services Law Blog
Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Services Law Blog

Consumer Financial Services Law Blog

News and analysis regarding Consumer Financial Services litigation and regulation, and activities of the Consumer Financial Protection Bureau


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Showing 6 posts in Reverse Mortgages.

CFPB Focus Group Raises Questions Regarding Reverse Mortgage Ads

Last week, the CFPB announced its findings from a focus group study it conducted regarding reverse mortgage advertising. Although the reverse mortgage market is about 1 percent of the size of the traditional mortgage market, with 628,000 outstanding loans, reverse mortgage lenders can expect increased scrutiny because the CFPB expects the number of reverse mortgage originations to rise now that “baby boomers” are retiring with little other than the equity in their homes to fund their retirements.  Read More ›

New FHA Guidelines Could Lead to Postponement of Reverse Mortgage Foreclosures

Late January, the Federal Housing Administration (FHA) issued new policy guidelines under its Home Equity Conversion Mortgage (HECM) program that allows FHA-approved lenders to postpone foreclosure proceedings against non-borrowing spouses in the event of the death of the last surviving borrower. This latest guidance is similar to policy changes announced by the FHA last year, but those changes only impacted HECM loans that were created on or after August 4, 2014. Read More ›

New CFPB Guidance on Higher-Priced Mortgage Loan Appraisal Rules under the Truth in Lending Act

On December 12, 2013, six federal financial regulatory agencies (the Federal Reserve, CFPB, FDIC, FHFA, NCUA, and OCC) issued a final rule amending the Dodd-Frank Act appraisal requirements for “higher-risk” mortgages to create exemptions from appraisal requirements for manufactured homes; loans of $25,000 or less (indexed each year for inflation); and certain “streamlined” refinancing transactions.  These exemptions are just in time, as the Higher-Priced Mortgage Loan (or HPML) Appraisal Rules under the Truth in Lending Act take effect on January 18, 2014.    Read More ›

Reverse Mortgage Rule re. Surviving Spouses Remanded to HUD

In Bennett v. Donovan, three plaintiffs brought suit against the Secretary of the Department of Housing and Urban Development (HUD) alleging that regulations implementing the Home Equity Conversion Mortgage (HECM) program violated the Administrative Procedure Act (APA).  Read More ›

CFPB Announces Broad Investigation of Mortgage Advertising Practices

In a joint action,  the CFPB and Federal Trade Commission (FTC) announced November 19, 2012 new warnings to mortgage lenders about allegedly deceptive mortgage advertisements. Under Dodd Frank, the agencies have concurrent enforcement authority under so-called Regulation N, the Mortgage Acts and Practices Advertising Rule. This rule prohibits misleading claims concerning government affiliation, interest rates, fees, costs, payments associated with the loan, and the amount of cash or credit available to the consumer. Read More ›

CFPB Releases Report to Congress on Reverse Mortgages and Seeks Additional Information Regarding These Products

Pursuant to the Dodd-Frank Act, the CFPB was required to conduct a study on reverse mortgages, which are mortgage loans that allow senior homeowners to tap the equity in their home without incurring monthly payments. The study culminated in a Report to Congress which the CFPB released on June 28, 2012 and can be found at http://www.consumerfinance.gov/reports/reverse-mortgages-report/.    Read More ›