politics for the 99%

Published on Dodd-Frank Update, June 11, 2015;

The Consumer Financial Protection Bureau CFPB issued a report detailing reverse mortgage advertisements and their potential risk to older consumers. The CFPB found that, after viewing reverse mortgage advertisements, focus group and interview participants were confused or had misconceptions about important features and terms of reverse mortgage loans.  

“Incomplete or inaccurate statements made in advertisements about reverse mortgages can pose serious risks to older Americans,” the CFPB report said. “While advertisements frequently do not describe all the details of the particular product or service being advertised, the incompleteness of reverse mortgage ads raises heightened concerns because reverse mortgages are complex loans used by older, often financially vulnerable homeowners.”

The CFPB interviewed 59 homeowners age 62 and older (48 participated in focus groups, 11 were interviewed one-on-one) and showed them 97 reverse mortgage advertisements (15 direct mail, 30 online, 3 radio, 6 print and 43 television ads) … //

… (full text).

Related Links:

on en.wikipedia:

• Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111–203, H.R. 4173; commonly referred to as Dodd-Frank) was signed into federal law by President Barack Obama on July 21, 2010 at the Ronald Reagan Building in Washington, DC.[1] Passed as a response to the Great Recession, it brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great Depression.[2][3][4] It made changes in the American financial regulatory environment that affect all federal financial regulatory agencies and almost every part of the nation’s financial services industry[5][6] …; /See also; /External Links;
• Barney Frank (born March 31, 1940) is an American politician who served as a member of the U.S. House of Representatives from Massachusetts from 1981 to 2013 …; /Bibliography; /External Links; /Articles;
• Chris Dodd (born May 27, 1944) is an American lobbyist, lawyer, and Democratic Party politician who served as a United States Senator from Connecticut for a thirty-year period from 1981-2011 …; /See also; /External Links;
• Consumer Financial Protection Bureau CFPB is an independent agency of the United States government responsible for consumer protection in the financial sector. Its jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, other financial companies operating in the United States.
• The CFPB’s creation was authorized by the Dodd–Frank Wall Street Reform and Consumer Protection Act, whose passage in 2010 was a legislative response to the financial crisis of 2007–08 and the subsequent Great Recession …; /See also; /External Links;
• American Advisors Group AAG is the top lender in the American reverse mortgage industry, licensed to operate in 48 states.[1][2] The company provides government-insured Home Equity Conversion Mortgage (HECM) loans and has 81 geographical areas approved for business by HUD …;
• Reverse mortage: a Reverse Mortgage or Home Equity Conversion Mortgage HECM is a special type of home loan for older homeowners that requires no monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner’s insurance. Reverse mortgages allow seniors to access the home equity they have built up in their homes now, and defer payment of the loan until they die, sell, or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. The rising loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. However, the borrower (or the borrower’s estate) is generally not required to repay any additional loan balance in excess of the value of the home.[1] Specific rules for reverse mortgage transactions vary depending on the laws of the jurisdiction …; /See also; /External Links;
• Home equity is the market value of a homeowner’s unencumbered interest in their real property—that is, the difference between the home’s fair market value and the outstanding balance of all liens on the property. The property’s equity increases as the debtor makes payments against the mortgage balance, and/or as the property value appreciates. In economics, home equity is sometimes called real property value …;
• United States Department of Housing and Urban Development HUD is a Cabinet department in the Executive branch of the United States federal government. Although its beginnings were in the House and Home Financing Agency, it was founded as a Cabinet department in 1965, as part of the “Great Society” program of President Lyndon Johnson, to develop and execute policies on housing and metropolises …; /See also; /External Links;

recent articles concerning Dodd-Frank:

• Four Years After Dodd-Frank, Feds Decide That Auto Lenders Are Like Banks After All & Add Oversight, on The Car Connection, by Richard Read, June 11, 2015;
• Lenders: Dodd-Frank Is Choking The Life Out Of The Mortgage Business, on Mortageorb, June 10, 2015;
• Chances of Changing Dodd-Frank Appear to Rest With Handful of Moderate Democrats, on Roll Call, by George Cahlink, June 10, 2015;
• Regulators Finalize Dodd-Frank Diversity Policies, on Compliance Week, by Joe Mont, June 9, 2015;
• Dodd-Frank continues to smother mortgage lending, on Housing Wire, by Trey Garrison, June 9, 2015;
• Rick Perry Doesn’t Need To Understand Dodd-Frank To Know That He Doesn’t Like It, on DealBreaker, by THORNTON MCENERY, June 8, 2015;
• Perry confuses CBS host – I’m against Dodd-Frank, and Wall Street, on Washington Examiner, by Barbara Boland, June 7, 2015;
• Perry Denounces Dodd-Frank, Calls for Banking Regulations, Confuses CBS Host, on Daily Signal, by Evan McMurry, June 7, 2015;
• Democrats line up behind targeted Dodd-Frank tweaks, on The Hill, by Peter Schroeder, June 3, 2015;
• Turns Out Dodd-Frank Didn’t Take Us Off the Hook for Big Banks’ Mistakes, on The Daily Signal, by David Allen, June 3, 2015;
• Panel moves to weaken Dodd-Frank, on Los Angeles Times, by Jim Puzzanghera, May 21, 2015;
• Could Fast Track Ultimately Destroy Dodd-Frank? (Yes.), on The Nation, by George Zornick, May 12, 2015;
• Washington, DC: The Emperor Wears No Clothes, on Media Roots, April 26, 2015;

Other Links:

Eric Cantor and Dick Fuld back to blame the govt for Wall Street crimes, on Daily Kos, by diligent bureaucrat, June 11, 2015;

Lehman Brothers’ afterlife in India, on live mint, by Ashish Rukhaiyar, par Monika Rühl*, le 11 juin 2015: more than seven years after it went bankrupt in the US, Wall Street’s former blue chip lives on in India with a sliver of investment in a Hyderabad-based firm;

After Robots Take Our Jobs, This Is What the Economy Will Look Like, on Tech.Mic, by Jack Smith IV, June 10, 2015;

Canada: Tax breaks not enough to help lower-income Islanders, say critics, on CBC.ca, June 10, 2015: Green Party Leader Peter Bevan-Baker wants to see basic income guarantee;

Tax freeze puts CGT and pensions in the firing line, on fund web.co.uk, by Mark Sands, June 8, 2015;

India: old politics in a new bottle, on live mint, June 8, 2015: India has room for social democratic politics but no party is up to the task.