CFPB’s Take on Reverse Mortgage Advertising

A VPN is an essential component of IT security, whether you’re just starting a business or are already up and running. Most business interactions and transactions happen online and VPN

The Consumer Financial Protection Bureau (CFPB), recently published results of a “study” on reverse mortgage advertising and came to the conclusion that
described ads as leading to “ambiguity,” “false impressions,” “difficult-to-read fine print,” and “celebrity endorsements that imply reliability and

The industry is left wondering how they can both market to senior consumers effectively and satisfy the CFPB when it comes to marketing materials.

The study at issue spanned just 59 home-owners age 62 and older who had heard of reverse mortgages, but who did not have reverse mort-gages. The advertisements
used were selected from 97 ads collected by the CFPB from print, radio, online and television sources.

Unfortunately, the CFPB is not releasing the ads that were used in the study and is forcing the National Reverse Mort-gage Lenders Association (NRMLA),
to file a request for the ads through the Freedom of Information Act (FOIA), which allows members of the public to access information from the federal

Back in 2012, NRMLA provided the CFPB with a recommended model dis-closure that it developed. If adopted, the disclosure would have addressed most of the
items they say are troublesome. To this date, NRMLA has not received a reply back from the CFPB regarding the recommendation.

The idea of a disclosure to be placed on all advertising could be helpful, but as you know from reading these newsletters, there are a number of details
that an advertiser simply cannot know about the homeowner’s situation and would have to be addressed individually.

Also, there was no mention in the study of the required counseling session with a HUD approved independent counseling agency whose job it is to make sure
that all homeowners under-stand what they are doing as well as other possible options the homeowner can do in place of taking a reverse mortgage.

Bruce Simmons

Bruce Simmons

I absolutely love what I do - working with senior homeowners to help them live a more comfortable, flexible and secure retirement. I have the absolute best customers in the world, and even though I worked in the forward mortgage business for a number of years, I could never go back to doing conventional loans. I'm a 100% reverse mortgage specialist.

Recent Posts

Reverse Mortgage News


When homeowners consider tapping the equity in their home, they typically think about refinancing their current mortgage in a cash out refinance, or a traditional home equity line of credit, (HELOC). However, if one of the homeowners is 62 or older, there is a third option that needs to be considered – the FHA insured Home Equity Conversion Mortgage (HECM).

Read More »
Reverse Mortgage Guide

Free Reverse Mortgage Guide

This 28-page Consumer Guide will help you make and informed decision whether a reverse mortgage is right for you.