The MReport Webcast: Friday 6/5/2015

The Consumer Financial Protection Bureau issued a warning to consumers today about the misleading effects of reverse mortgage advertisements. The Bureau released results of a focus group study on reverse mortgage advertisements and found that many participants were left confused about the product. After viewing the ads, consumers did not understand that reverse mortgages were actual loans. Instead, they were left under the false impression that reverse mortgages are a government-issued program that would help consumers stay in their home for the rest of their lives.

The CFPB’s consumer advisory warning informed consumers of exactly what they should know about reverse mortgages. The Bureau reminded consumers that a reverse mortgage is a home loan, not a government benefit, and consumers should know that they have fees and compounding interest that must be repaid, just like other home loans. The CFPB also cautions that reverse mortgage ads do not always tell the whole story and without a good financial plan, a consumer could outlive the loan money.

​A federal judge has ruled that the Federal Deposit Insurance Corporation is liable for facing certain legal claims that FDIC-insured JPMorgan Chase inherited from its 2008 acquisition of Washington Mutual. JPMorgan acquired the failing Seattle-based bank for $1.88 billion in 2008 during the onset of the financial crisis, after the Office of Thrift Supervision seized Washington Mutual and appointed the FDIC as receiver.