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CUNA Comments to the CFPB Reverse Mortgages


CUNA submitted a comment letter to the CFPB on the agency’s request for information on the use of reverse mortgages, consumer use of the loan proceeds, and business practices on reverse mortgages.  As detailed in the comment letter, CUNA says it appreciates the CFPB’s ongoing efforts to study reverse mortgages and efforts to prevent and reduce abusive practices on such products for consumers.  Only about 25 credit unions offer reverse mortgages, and it is CUNA's understanding that they provide reasonable terms and adequate disclosures of the benefits and risks on such products to their older members. CUNA urged the agency to focus on mortgages that are not properly disclosed and are abusive to borrowers, rather than on credit union products.