After the Consumer Financial Protection Bureau raised concerns about the complexities involved in reverse lending products, the National Reverse Mortgage Lenders Association responded by promoting educational materials highlighting the benefits and risks of the product.
The association spent the past year developing an educational program titled, Borrow with Confidence. The initiative that takes potential borrowers through the structure of the reverse mortgage product, as well as the application process, while also discussing fees, borrower responsibility and the potential risks for the children of reverse mortgage borrowers. The program also contains a 19-point pledge to borrowers, explaining their rights and what they should expect from their loans.
"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."
Consumers will find the materials at www.ReverseMortgage.org.