On February 9th, 2015, the CFPB released a report highlighting consumer complaints regarding reverse mortgages. The report covers 1,200 reverse mortgage complaints received between December 1, 2011, and December 31, 2014, or roughly 1 percent of all mortgage complaints received. According to the Bureau, many complaints show a mismatch between consumer expectations and the way the product functions.
In response to the report, the Bureau also issued a consumer advisory for consumers who currently have a reverse mortgage that highlights ways to protect surviving heirs from potential financial hardship.
Read the report here.
Read the consumer advisory here.