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Sat May 25, 2013
Following a CFPB report that linked foreclosures to confusion over reverse mortgages, the National Reverse Mortgage Lenders Association (NRMLA) is seeking to help seniors make responsible decisions about their mortgages.
NRMLA announced that it has developed a series of tools designed to help seniors better understand the facts about reverse mortgages before they choose to use them. A common misconception about reverse mortgages, the CFPB revealed, is that they are a government benefit rather than a financial product.
In order to provide easy-to-understand information, NRMLA worked with stakeholders over the past year to develop a comprehensive public education effort called Borrow with Confidence.
Unveiled on June 21, Borrow with Confidence explains every aspect of the reverse mortgage product and is available at ReverseMortgage.org. It also includes a 19-point pledge to borrowers that explains their rights and confirms the level of integrity they should expect. One complaint about reverse mortgages in the CFPB report was about the use of deceptive marketing, behavior that is forbidden in the NRMLA.
“Through our ongoing public education efforts, the National Reverse Mortgage Lenders Association is aggressively trying to help seniors avoid short-sighted or misinformed choices,” said NRMLA president Peter Bell. “We share the CFPB’s concern that seniors and their adult children need a more in-depth understanding of reverse mortgages. Our new outreach campaign aims to give consumers the resources they need to make informed and deliberate decisions about their retirement security.”
“Clear and honest information can help seniors and their families make the best decisions for their own situations,” said Bell. “The National Reverse Mortgage Lenders Association will continue to work with the CFPB to achieve that goal.”
NRMLA is a membership organization made up of more than 300 companies and more than 1,000 people in the reverse mortgage industry. Its membership is responsible for more than 90 percent of the reverse mortgage transactions in the country.
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