Posts Tagged ‘Mortgages’

Massachusetts AG reaches settlement with mortgage broker for deceptive practices

Massachusetts AG reverse mortgagesThe Massachusetts Attorney General’s Office (AG) issued a press release on April 11, 2017, announcing that it had reached a settlement with mortgage broker, Direct Finance Corp., one of its loan originators and an outside insurance agent to resolve claims that the defendants preyed on elderly homeowners.

In August 2015, the AG filed a lawsuit alleging that the defendants had engaged in sales tactics that convinced elderly homeowners to apply for reverse mortgages and invest their proceeds in risky financial products, including variable annuities. In some cases, those annuities included severe withdrawal penalties if the consumer accessed more than a small percentage of their proceeds during the first few years of the annuity.

CFPB set to begin 5-year review of mortgage rules

CFPB review of mortgage rulesEarlier this week, Chris D’Angelo, the CFPB’s Associate Director of Supervision, Enforcement and Fair Lending, discussed the CFPB’s plans to initiate its review of major mortgage regulations, including the qualified mortgage rule which established standards for lenders to follow to ensure that borrowers have the ability to repay their mortgages.

According to the Dodd-Frank Act, the CFPB must assess all of its rules five years after they take effect to ensure they are accomplishing the objectives of Dodd-Frank as well as the impact on financial institutions and consumers. The qualified mortgage rule and other significant mortgage regulations took effect in January 2013.