“American Advisors Group, Reverse Mortgage Solutions and Aegean Financial are the latest names to face the wrath of the Consumer Financial Protection Bureau due to deceptive advertisements in reverse mortgage lending. Collectively, the bureau ordered the three reverse mortgage lenders to pay a civil penalty of $790,000.”
A reverse mortgage allows homeowners 62 and older to tap the equity in their home and put off repayment until they sell the house and move or die, essentially living off the equity to fund retirement. Federal laws “prohibit misleading claims in mortgage advertising and institutions from engaging in deceptive acts or practices.” These three lenders violated federal laws and will pay a very small penalty. With the future of consumer protection legislation in jeopardy under the coming anti-regulation administration, who knows what the future holds for consumer protection.
Details at: http://www.housingwire.com/articles/38699-cfpb-fines-three-reverse-mortgage-lenders-over-deceptive-advertising
Source: Financial Planning for Women