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Federal group: better reverse mortgage information should be provided to consumers 2009-12-18 The Federal Financial Institutions Examination Council proposed new reverse mortgage guidelines for government regulators this week in an effort to clarify the information available to consumers. FFIEC members - there are six in total - include the Federal Reserve Board of Governors, the Federal Deposit Insurance Corp. and the National Credit Union Administration. The coalition makes recommendations about government supervision of financial institutions; its decision on reverse mortgage guidelines will not come until February, at the earliest. Reverse mortgages are rising in popularity, the FFIEC acknowledged. "These products have the potential to become an increasingly important credit product for addressing certain credit needs of an aging population," it said in its guidance statement. But because of reverse mortgages' complexity, the FFIEC continued, "it is particularly important [that banks] provide adequate information and other consumer protections." Because the products are only available to people over 62, in other words, banks need to provide understandable and consistent advice to customers. In its proposed guidance for regulators, the FFIEC emphasized the importance of independent credit counseling for Americans considering reverse mortgages. And consumers should be provided "clear and balanced information" to help them in their decision-making, it said.  |
