NASCUS Provides Summary of FFIEC Reverse Mortgage Guidance
August 30, 2010 The NCUA, the federal banking agencies and the FFIEC State Liaison Committee (SLC) issued guidance on managing compliance and reputation risks associated with reverse mortgage products.
NASCUS members can view a comprehensive summary of this guidance at this link. Member log-in required.)
In addition to addressing concerns, the guidance addresses mitigating the compliance and reputation risks associated with reverse mortgages.
The guidance also covers the general features of reverse mortgage products and the relevant legal requirements. It states that banks, thrifts, and credit unions need to provide clear and balanced information to consumers about the risks and benefits of reverse mortgage products. The guidance puts a focus on the importance of independent, qualified counseling on these products where appropriate.
FFIEC is comprised of federal financial regulators and the FFIEC State Liaison Committee (SLC). A state credit union regulator, Harold Feeney (TX), serves on the FFIEC SLC.
To view the guidance, follow this link.