CFPB Begins Reverse Mortgage Exams, Tells Lenders to Prepare
October 29, 2012
During a session at the recent National Reverse Mortgage Lenders Association (NRMLA) conference in San Antonio, industry insiders and compliance experts discussed the role of the Consumer Financial Protection Bureau (CFPB) in auditing reverse mortgage lending firms. According to an NRMLA member in attendance, the agency scrutinizes current loans as well as "dead deals," or those that never closed. NRMLA legal counsel Jim Milano said the CFPB may conduct horizontal reviews or products and services as well a lender's geographic footprint and prior history with state regulators. "Risk assessment, consumer complaints, and the patterns of complaints will drive their examination," Milano said. Although the CFPB has yet to issue any formal enforcement actions against reverse mortgage lenders, it is likely to do so.
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