CFPB Warns Of Dangers In Reverse Mortgages

Law360, New York (June 28, 2012, 2:19 PM EDT) -- The federal government's consumer finance watchdog on Thursday said that senior citizens may not understand the ramifications of taking out a reverse mortgage on their homes, and opened the door to potential new rules for the growing industry.

In a report, the Consumer Financial Protection Bureau said that while reverse mortgages were intended as a vehicle for seniors to get equity out of their homes while being able to stay in one place for the last years of their lives, in practice many older homeowners are...
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