On February 9th, 2015, the CFPB released a report highlighting consumer complaints regarding reverse mortgages. The report covers 1,200 reverse mortgage complaints received between December 1, 2011, and December 31, 2014, or roughly 1 percent of all mortgage complaints received. According to the Bureau, many complaints show a mismatch between consumer expectations and the way the product functions.
In response to the report, the Bureau also issued a consumer advisory for consumers who currently have a reverse mortgage that highlights ways to protect surviving heirs from potential financial hardship.
Read the report here.
Read the consumer advisory here.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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