FHA warns lenders on deceptive reverse mortgage practices

SOURCE: Mortgage News Feed

The Federal Housing Administration continues trying to refine its policies and procedures on Home Equity Conversion Mortgages for lenders, the goal of which is to ensure more vulnerable senior borrowers aren’t confused or mislead in the loan process. Lenders in the HECM program must certain older borrowers are fully informed of all their options when applying for reverse mortgages, and underscored the agency’s prohibition against misleading or deceptive advertising.

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