Compliance: CFPB Levies Penalties on HECM Lenders

by Shannon Hicks
| One Comment
| March 20, 2017

Recent CFPB actions highlight the importance of compliant advertising and sales practices

Since the founding of the CFPB (Consumer Financial Protection Bureau) in 2011, lenders have found themselves navigating the ever-changing waters of regulatory compliance. Reverse mortgage lenders have recently felt the impact of the agency with three lenders paying substantial penalties levied. Today more than ever before, compliance is not a merely a burden, it is imperative for the well being of lenders and our industry as a whole. Breaking the Bad News: It’s not the kind of news one wants to break during a corporate earnings call. Walter Investment Corporation revealed two subpoenas related to their former origination unit: Reverse Mortgage Solutions. The subpoenas focused on the former HECM lender’s origination, underwriting and appraisal practices. Even more troubling was the announcement that… Download the video transcript here.

Editor in Chief: HECMWorld.com

As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.

Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.

Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

1 Comment

Don Matunis
March 20, 2017 at 5:51 am
Thank you Mr. Hicks,
It has been my sole purpose to teach, train, and and give the citizens over the age of 62 a viable means to increase there monthly income, to increase there financial status, and to possibly help them see that this program was designed to assist them in their future years. It is a very lucrative form of utilizing the equity they have worked so hard for, to have that equity work for them.
Don Matunis
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