CFPB Reports Common Consumer Complaints About Reverse Mortgages

We reported earlier this month that the Federal Housing Authority recently provided an option for reverse-mortgage lenders to allow eligible surviving non-borrowing spouses to remain in their homes after the death of their borrowing spouses. According to a report recently released by the Consumer Financial Protection Bureau, it appears that this option became necessary due to borrowers' general lack of understanding of the special terms and requirements of reverse mortgage loans.

The CFPB's report summarized the most common complaints it has received since it began accepting consumer complaints in December 2011. Highest on the list are complaints that consumers are not permitted to make certain changes to their loans. For instance, many borrowers complain that they are not permitted to add additional borrowers, such as their children, to their reverse mortgages in order to extend the terms of the loans. This frustration often results from a lack of understanding that a