Titus Amendment to Financial Reform Will Protect Nevada Seniors from Predatory Mortgage Agreements

December 12, 2009

by Nevada RealEstateRama

Washington, D.C. – December 10, 2009 – (RealEstateRama) — Congresswoman Dina Titus of Nevada joined with Congresswoman Jan Schakowsky of Illinois to introduce an amendment to the Wall Street Reform and Consumer Protection Act of 2009 that will help protect seniors from predatory practices by lending agencies. The amendment will protect seniors from lenders trying to entice them into reverse mortgages without providing clear information that is needed to make important decisions about such complex financial instruments.

“Too often lenders prey on senior citizens with reverse mortgage agreements that promise free money or gifts in order to rope them into confusing agreements that leave them facing excessive fees and higher than expected costs,” Congresswoman Titus said. “These unfair agreements threaten the financial security of our seniors and are the latest tool in predatory lending practices. Reverse mortgages need to be closely monitored and regulated in an effort to ensure seniors do not lose their homes and the equity they have built up through a lifetime of hard work.”

Specifically, the amendment provides needed safeguards by requiring the Consumer Financial Protection Agency (CFPA) to examine the reverse mortgage industry to ensure our country’s seniors are not exposed to unfair and deceptive practices. In addition, the CFPA will ensure that all disclosures relating to reverse mortgages are just as clear and easy to understand as all other mortgage products.

The amendment, which is expected to be debated and voted on later today or tomorrow, is endorsed by AARP, the nation’s largest membership organization for people 50 and over.