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New Bill Will Establish Reverse Mortgage Protections

Published on 07/20/2010

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The newly passed Wall Street Reform and Consumer Protection Act will enact sweeping financial reforms including protections against unfair reverse mortgage practices.

Financial regulators will be given considerable influence in designing and enforcing the new legislation, which is expected to be signed into law by President Obama next week.

Within the first year of the bill, new studies will be conducted to determine if there are widespread deceptive or abusive reverse mortgage tactics. It will then be decided if suitability standards are needed along with other safeguards.

The reverse mortgage protections were included in the bill thanks to the efforts of Congresswoman Dina Titus.

”Thanks to a provision I fought to include, seniors will be protected from unfair and deceptive practices surrounding reverse mortgages, ensuring that in their golden years they do not lose their home and equity they built up through a lifetime of work,” stated Congresswomen Titus.