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CFPB slaps 3 reverse companies with false advertising penalties

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Mortgage Professional America | 08 Dec 2016, 08:15 AM Agree 0
The CFPB alleges that three reverse mortgage companies – including the nation’s largest – are guilty of deceptive advertising
  • Omer Q. | | 08 Dec 2016, 09:21 AM Agree 0
    These fines for messing up some ones life at a time they can't afford it is the equivalent of giving someone a reckless driving ticket for a car accident that has killed someone. It does nothing to restore the damage they have done.
  • Donald Y | | 08 Dec 2016, 12:00 PM Agree 0
    These fines seem small compared to the damage incurred by an unknown amount of borrowers. the question is >> Do the borrowers have any further recourse >> i.e. punitive damages?
  • Steve | | 08 Dec 2016, 12:08 PM Agree 0
    No more monthly mortgage payments would be a true statement of a reverse mortgage. Sure you have other payments like your property taxes and homeowners insurance but there is no monthly mortgage payment on a reverse mortgage. Not sure what the issue is with that. As far as advertising that you can never lose your home, well, that is completely false. You must pay taxes, homeowners insurance and keep the property in livable condition and live in the home as your primary residence or the lender can call the mortgage due. Any decent mortgage officer would tell their clients that.
  • Disheartened/Disgusted | | 08 Dec 2016, 02:00 PM Agree 0
    Those fines are ridiculous given the impact on people's lives! And using celebrities that have no idea what they are proclaiming in ads provides a false reassurance to folks who want to believe the late Fred Thompson or Henry Winkler would never steer them wrong. It's shameful and they should receive a fine ten times greater and have to pay back every individual they fleeced.
  • | | 08 Dec 2016, 04:54 PM Agree 0
    Another way you can lose your home on a reverse mortgage even if you are paying your taxes and homeowners Insurance is if you become ill and spend a year in hospitals or in nurses care I'm told from a RM counselor that the bank can call the note due.
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