NRMLA asks CFPB for new reverse mortgage disclosure framework

The National Reverse Mortgage Lenders Association (NRMLA) is urging the Consumer Financial Protection Bureau (CFPB) to overhaul reverse mortgage disclosures, arguing that tailored, simplified materials could help consumers better understand the products and their risks. In an Aug. 10 comment letter responding to the CFPB’s request for information on promoting access to mortgage credit, NRMLA said reverse mortgages require a disclosure framework designed specifically for the products rather than one based largely on forward lending concepts. The trade group supports integrated reverse mortgage disclosures that would give borrowers clearer information about loan costs, payment options, ongoing responsibilities and consumer protections. It recommended that any changes go through formal notice-and-comment rulemaking and include a lengthy implementation period for lenders, servicers, vendors and other industry participants. “Reverse mortgages differ from forward mortgage products in ways that make certain generic forward-mortgage disclosure concepts less effective for consumers,” NRMLA President Steve Irwin wrote in the comment letter. One of the association’s primary recommendations is...