Consumer Use of Reverse Mortgages, 39222-39224 [2012-16078]
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Federal Register / Vol. 77, No. 127 / Monday, July 2, 2012 / Notices
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BILLING CODE 3510–22–P
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Jkt 226001
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[FR Doc. 2012–16091 Filed 6–29–12; 8:45 am]
BILLING CODE 3510–16–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
[Docket No. CFPB–2012–0026]
Consumer Use of Reverse Mortgages
Bureau of Consumer Financial
Protection.
ACTION: Notice and request for
information.
AGENCY:
Section 1076 of the DoddFrank Wall Street Reform and Consumer
Protection Act (the Dodd-Frank Act)
required the Bureau of Consumer
Financial Protection (the CFPB or the
Bureau) to conduct a study on reverse
mortgage transactions.1 The Bureau
published this study in a June 28, 2012
Report to Congress.
The Bureau also has authority to
implement regulations on reverse
mortgage transactions. Specifically, the
Bureau has authority to implement
federal consumer financial laws,
including the Truth in Lending Act and
the Real Estate Settlement Procedures
Act, which already impose requirements
on reverse mortgage transactions.
Further, section 1076 of the Dodd-Frank
Act supplements the Bureau’s authority
to specify that the Bureau’s regulations
of reverse mortgage transactions may
identify any practice as unfair,
deceptive, or abusive, and may provide
for an integrated disclosure standard
and model disclosures.2
To assist its ongoing study of reverse
mortgage transactions, the Bureau is
SUMMARY:
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public. Law 111–203, § 1076(a), 124
Stat. 2075 (2010) (12 U.S.C. 5602).
2 Id. § 1076(b).
E:\FR\FM\02JYN1.SGM
02JYN1
Federal Register / Vol. 77, No. 127 / Monday, July 2, 2012 / Notices
seeking detailed information from the
public on the factors that influence
reverse mortgage consumers’ decisionmaking, consumers’ use of reverse
mortgage loan proceeds, longer-term
consumer outcomes of a decision to
obtain a reverse mortgage, and
differences in market dynamics and
business practices among the broker,
correspondent, and retail channels for
reverse mortgages.
Comments must be received on
or before August 31, 2012 to be assured
of consideration.
DATES:
You may submit comments,
identified by Docket No. CFPB–2012–
0026, by any of the following methods:
• Electronic: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail/Hand delivery/Courier:
Monica Jackson, Office of the Executive
Secretary, Bureau of Consumer
Financial Protection Bureau, 1700 G
Street NW., Washington, DC 20552.
Instructions: The CFPB encourages
the early submission of comments. All
submissions must include the document
title and docket number. Because paper
mail in the Washington, DC area and at
the Bureau is subject to delay,
commenters are encouraged to submit
comments electronically. Please note
the number associated with any
question to which you are responding at
the top of each response (you are not
required to answer all questions to
receive consideration of your
comments). In general, all comments
received will be posted without change
to https://www.regulations.gov. In
addition, comments will be available for
public inspection and copying at 1700
G Street NW., Washington, DC 20552,
on official business days between the
hours of 10 a.m. and 5 p.m. Eastern
Time. You can make an appointment to
inspect the documents by telephoning
202–435–7275.
All comments, including attachments
and other supporting materials, will
become part of the public record and
subject to public disclosure. Sensitive
personal information such as account
numbers or Social Security numbers
should not be included. Comments will
not be edited to remove any identifying
or contact information.
mstockstill on DSK4VPTVN1PROD with NOTICES
ADDRESSES:
For
general inquiries, submission process
questions or any additional information,
please contact Monica Jackson, Office of
the Executive Secretary, at 202–435–
7275.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
VerDate Mar<15>2010
17:22 Jun 29, 2012
Jkt 226001
Background
As part of the Dodd-Frank Wall Street
Reform and Consumer Protection Act,
Congress directed the Consumer
Financial Protection Bureau (CFPB) to
conduct a study on reverse mortgages.3
In designing the study, the CFPB’s
objectives were to (1) provide an
authoritative resource on reverse
mortgage products, consumers, and
markets; (2) identify and assess
consumer protection concerns; and (3)
explore critical unanswered questions
and update the public body of
knowledge to reflect new market
realities. On June 28, 2012, the CFPB
released the findings of the study in a
Report to Congress (the Report).
The study identified four major topics
where additional research would help
determine if additional consumer
education or regulatory action is
needed. Those topics are: (a) Factors
influencing consumer decisions; (b)
consumer use of reverse mortgage
proceeds; (c) the longer-term outcomes
of reverse mortgages; and (d) the
differences in market dynamics and
business practices among the broker,
correspondent, and retail channels. This
request seeks comment and information
from the public on these topics.
Request for Information
The Bureau seeks information from
the public, including consumers,
housing counselors, financial
institutions, and others, regarding
consumer use of reverse mortgages and
consumer experiences during the
reverse mortgage shopping process. This
information will enable the Bureau to
better understand and evaluate potential
consumer protection issues raised by
reverse mortgages and the shopping
process.
The questions are grouped into four
broad topics: (a) Factors influencing
consumer decisions, (b) consumer use of
reverse mortgage proceeds, (c) the
longer-term outcomes of reverse
mortgages, and (d) the differences in
market dynamics and business practices
among the broker, correspondent, and
retail channels.
You may respond to all of the
questions or only some questions.
Please note the number of any question
to which you are responding at the top
of each response. If your responses are
specific to a particular reverse mortgage
product option (e.g., fixed-rate, lumpsum vs. adjustable-rate, line-of-credit
products), please note in your response
to which product your response relates.
Please note that the Bureau is not
seeking personally identifying
3 Id.
PO 00000
at § 1076(a).
Frm 00016
Fmt 4703
Sfmt 4703
39223
information (PII) in response to this
request. Responses to this request
should not contain any reverse mortgage
account numbers, Social Security
numbers or other personal information
that could be used to identify an
individual consumer or account, nor
should they include any information
that may otherwise reveal personally
identifiable information.
Factors influencing consumer
decisions:
1. What factors are most important to
consumers in deciding whether to get a
reverse mortgage?
2. What factors are most important to
consumers in choosing among products?
Among other things, comments could
address the choice between fixed-rate,
lump-sum reverse mortgages and
adjustable-rate, line-of-credit or monthly
disbursement reverse mortgages.
3. What factors are most important to
consumers in choosing among potential
lenders?
Consumer use of reverse mortgage
proceeds:
4. Nearly 75% of recent reverse
mortgage consumers took out all of their
available funds upfront in a lump sum.
a. What do consumers do with these
funds?
b. Where do consumers place loan
money that they do not use
immediately? (E.g., in a savings account,
an investment account, a certificate of
deposit (CD), etc.).
5. Some reverse mortgage consumers
use reverse mortgage loan funds to
refinance a traditional mortgage or home
equity loan/line of credit.
a. What proportion of consumers are
using reverse mortgage loan funds to
refinance a traditional mortgage or home
equity loan/line of credit?
b. What proportion of the loan funds
are typically spent on paying off an
existing mortgage?
c. Do consumers using a reverse
mortgage to refinance an existing
mortgage typically consider other
options first (e.g. moving to a different
home or a traditional refinancing)? If
not, why not? If so, what factors lead
them to choose a reverse mortgage
instead?
6. Some reverse mortgage consumers
use reverse mortgage loan funds to
consolidate non-housing debts.
a. What proportion of borrowers use
reverse mortgage loan funds to
consolidate non-housing debts?
b. What proportion of the loan funds
are typically spent on consolidating
non-housing debts?
c. What types of non-housing debts
are typically consolidated (e.g. credit
card, auto, medical-related debt, etc.)?
Longer-term outcomes for reverse
mortgages borrowers:
E:\FR\FM\02JYN1.SGM
02JYN1
mstockstill on DSK4VPTVN1PROD with NOTICES
39224
Federal Register / Vol. 77, No. 127 / Monday, July 2, 2012 / Notices
7. Consumers typically pay off their
reverse mortgage loans earlier than
would be expected based on underlying
mortality rates.
a. Why do consumers typically pay off
their reverse mortgage loans early?
b. Do consumers anticipate being able
to pay off a reverse mortgage at a
specific time (e.g. upon receiving a
pension or retirement benefit) when
taking the reverse mortgage loan?
c. Do consumers who pay off their
loans early typically feel that the loan
was a good choice? Are there things
they wish they had done differently?
8. Some consumers pay off a reverse
mortgage upon moving out of a home.
a. Why do consumers decide to move?
Are such moves typically because the
move is planned in advance or because
the move is required for health or other
reasons?
b. How do reverse mortgage borrowers
finance a later move?
9. What are the typical outcomes for
borrowers who still have the loan after
5 years or more?
a. Does the loan continue to meet
borrowers’ financial needs 5 or more
years after origination?
b. If borrowers have drawn all of their
available funds, what financial
resources do they use to meet new or
unexpected expenses?
c. Do borrowers who still have the
loan after 5 or more years typically feel
that the loan was a good choice? Are
there things they wish they had done
differently?
The differences in market dynamics
and business practices among the
broker, correspondent, and retail
channels:
10. How are brokers, correspondent
lenders, and retail loan officers typically
compensated?
a. How does this compensation differ
by channel?
b. How do compensation structures
and regulatory requirements (e.g.,
mortgage loan originator compensation
rules) affect the business practices of
lenders and brokers?
c. How do these factors affect the
choices presented to consumers?
11. The Bureau has observed that
major large bank originators of reverse
mortgages tended to originate a far
higher percentage of adjustable-rate,
line-of-credit (or monthly-installment)
loans than the nonbank originators.
What explains this difference?
Dated: June 25, 2012.
Garry Reeder,
Acting Chief of Staff, Bureau of Consumer
Financial Protection.
[FR Doc. 2012–16078 Filed 6–29–12; 8:45 am]
BILLING CODE 4810–AM–P
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Jkt 226001
DEPARTMENT OF EDUCATION
Notice of Proposed Information
Collection Requests; Office of Special
Education and Rehabilitative Services;
Annual Vocational Rehabilitation
Program/Cost Report (Rehabilitation
Services Administration (RSA)-2)
The Annual Vocational
Rehabilitation Program/Cost Report,
Rehabilitation Services Administration
(RSA)-2 collects data on the vocational
rehabilitation (VR) and supported
employment (SE) program activities for
agencies funded under the
Rehabilitation Act of 1973, as amended
(Rehabilitation Act).
DATES: Interested persons are invited to
submit comments on or before August
31, 2012.
ADDRESSES: Written comments
regarding burden and/or the collection
activity requirements should be
electronically mailed to
ICDocketMgr@ed.gov or mailed to U.S.
Department of Education, 400 Maryland
Avenue SW., LBJ, Washington, DC
20202–4537. Copies of the proposed
information collection request may be
accessed from https://edicsweb.ed.gov,
by selecting the ‘‘Browse Pending
Collections’’ link and by clicking on
link number 04881. When you access
the information collection, click on
‘‘Download Attachments’’ to view.
Written requests for information should
be addressed to U.S. Department of
Education, 400 Maryland Avenue SW.,
LBJ, Washington, DC 20202–4537.
Requests may also be electronically
mailed to ICDocketMgr@ed.gov or faxed
to 202–401–0920. Please specify the
complete title of the information
collection and OMB Control Number
when making your request.
Individuals who use a
telecommunications device for the deaf
(TDD) may call the Federal Information
Relay Service (FIRS) at 1–800–877–
8339.
SUPPLEMENTARY INFORMATION: Section
3506 of the Paperwork Reduction Act of
1995 (44 U.S.C. Chapter 35) requires
that Federal agencies provide interested
parties an early opportunity to comment
on information collection requests. The
Director, Information Collection
Clearance Division, Privacy, Information
and Records Management Services,
Office of Management, publishes this
notice containing proposed information
collection requests at the beginning of
the Departmental review of the
information collection. The Department
of Education is especially interested in
public comment addressing the
following issues: (1) Is this collection
SUMMARY:
PO 00000
Frm 00017
Fmt 4703
Sfmt 4703
necessary to the proper functions of the
Department; (2) will this information be
processed and used in a timely manner;
(3) is the estimate of burden accurate;
(4) how might the Department enhance
the quality, utility, and clarity of the
information to be collected; and (5) how
might the Department minimize the
burden of this collection on the
respondents, including through the use
of information technology. Please note
that written comments received in
response to this notice will be
considered public records.
Title of Collection: Annual Vocational
Rehabilitation Program/Cost Report
(Rehabilitation Services Administration
(RSA)-2).
OMB Control Number: 1820–001.
Type of Review: Revision.
Total Estimated Number of Annual
Responses: 80.
Total Estimated Number of Annual
Burden Hours: 320.
Abstract: The Annual Vocational
Rehabilitation Program/Cost Report
(RSA–2) collects data on the vocational
rehabilitation (VR) and supported
employment (SE) program activities for
agencies funded under the
Rehabilitation Act of 1973, as amended
(Rehabilitation Act). The RSA–2
captures: administrative expenditures
for the VR and SE programs; VR
program service expenditures by
category; SE administrative
expenditures and service expenditures;
expenditures for the VR program by
number of individuals served; the costs
of types of services provided; and a
breakdown of staff of the VR agencies.
Dated: June 27, 2012.
Darrin A. King,
Director, Information Collection Clearance
Division, Privacy, Information and Records
Management Services, Office of Management.
[FR Doc. 2012–16179 Filed 6–29–12; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF EDUCATION
Notice of Proposed Information
Collection Requests; Office of Special
Education and Rehabilitative Services;
Case Service Report (Rehabilitation
Services Administration (RSA)-911)
The Case Service Report
(RSA–911) is an annual report of
demographic and caseload information,
including financial information, related
to all individuals who have exited the
State Vocational Rehabilitation Service
Program (VR program).
DATES: Interested persons are invited to
submit comments on or before August
31, 2012.
SUMMARY:
E:\FR\FM\02JYN1.SGM
02JYN1
]]>Agencies
[Federal Register Volume 77, Number 127 (Monday, July 2, 2012)]
[Notices]
[Pages 39222-39224]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16078]
=======================================================================
-----------------------------------------------------------------------
BUREAU OF CONSUMER FINANCIAL PROTECTION
[Docket No. CFPB-2012-0026]
Consumer Use of Reverse Mortgages
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Notice and request for information.
-----------------------------------------------------------------------
SUMMARY: Section 1076 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the Dodd-Frank Act) required the Bureau of Consumer
Financial Protection (the CFPB or the Bureau) to conduct a study on
reverse mortgage transactions.\1\ The Bureau published this study in a
June 28, 2012 Report to Congress.
---------------------------------------------------------------------------
\1\ Dodd-Frank Wall Street Reform and Consumer Protection Act,
Public. Law 111-203, Sec. 1076(a), 124 Stat. 2075 (2010) (12 U.S.C.
5602).
---------------------------------------------------------------------------
The Bureau also has authority to implement regulations on reverse
mortgage transactions. Specifically, the Bureau has authority to
implement federal consumer financial laws, including the Truth in
Lending Act and the Real Estate Settlement Procedures Act, which
already impose requirements on reverse mortgage transactions. Further,
section 1076 of the Dodd-Frank Act supplements the Bureau's authority
to specify that the Bureau's regulations of reverse mortgage
transactions may identify any practice as unfair, deceptive, or
abusive, and may provide for an integrated disclosure standard and
model disclosures.\2\
---------------------------------------------------------------------------
\2\ Id. Sec. 1076(b).
---------------------------------------------------------------------------
To assist its ongoing study of reverse mortgage transactions, the
Bureau is
[[Page 39223]]
seeking detailed information from the public on the factors that
influence reverse mortgage consumers' decision-making, consumers' use
of reverse mortgage loan proceeds, longer-term consumer outcomes of a
decision to obtain a reverse mortgage, and differences in market
dynamics and business practices among the broker, correspondent, and
---------------------------------------------------------------------------
retail channels for reverse mortgages.
DATES: Comments must be received on or before August 31, 2012 to be
assured of consideration.
ADDRESSES: You may submit comments, identified by Docket No. CFPB-2012-
0026, by any of the following methods:
Electronic: https://www.regulations.gov. Follow the
instructions for submitting comments.
Mail/Hand delivery/Courier: Monica Jackson, Office of the
Executive Secretary, Bureau of Consumer Financial Protection Bureau,
1700 G Street NW., Washington, DC 20552.
Instructions: The CFPB encourages the early submission of comments.
All submissions must include the document title and docket number.
Because paper mail in the Washington, DC area and at the Bureau is
subject to delay, commenters are encouraged to submit comments
electronically. Please note the number associated with any question to
which you are responding at the top of each response (you are not
required to answer all questions to receive consideration of your
comments). In general, all comments received will be posted without
change to https://www.regulations.gov. In addition, comments will be
available for public inspection and copying at 1700 G Street NW.,
Washington, DC 20552, on official business days between the hours of 10
a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect
the documents by telephoning 202-435-7275.
All comments, including attachments and other supporting materials,
will become part of the public record and subject to public disclosure.
Sensitive personal information such as account numbers or Social
Security numbers should not be included. Comments will not be edited to
remove any identifying or contact information.
FOR FURTHER INFORMATION CONTACT: For general inquiries, submission
process questions or any additional information, please contact Monica
Jackson, Office of the Executive Secretary, at 202-435-7275.
SUPPLEMENTARY INFORMATION:
Background
As part of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, Congress directed the Consumer Financial Protection
Bureau (CFPB) to conduct a study on reverse mortgages.\3\ In designing
the study, the CFPB's objectives were to (1) provide an authoritative
resource on reverse mortgage products, consumers, and markets; (2)
identify and assess consumer protection concerns; and (3) explore
critical unanswered questions and update the public body of knowledge
to reflect new market realities. On June 28, 2012, the CFPB released
the findings of the study in a Report to Congress (the Report).
---------------------------------------------------------------------------
\3\ Id. at Sec. 1076(a).
---------------------------------------------------------------------------
The study identified four major topics where additional research
would help determine if additional consumer education or regulatory
action is needed. Those topics are: (a) Factors influencing consumer
decisions; (b) consumer use of reverse mortgage proceeds; (c) the
longer-term outcomes of reverse mortgages; and (d) the differences in
market dynamics and business practices among the broker, correspondent,
and retail channels. This request seeks comment and information from
the public on these topics.
Request for Information
The Bureau seeks information from the public, including consumers,
housing counselors, financial institutions, and others, regarding
consumer use of reverse mortgages and consumer experiences during the
reverse mortgage shopping process. This information will enable the
Bureau to better understand and evaluate potential consumer protection
issues raised by reverse mortgages and the shopping process.
The questions are grouped into four broad topics: (a) Factors
influencing consumer decisions, (b) consumer use of reverse mortgage
proceeds, (c) the longer-term outcomes of reverse mortgages, and (d)
the differences in market dynamics and business practices among the
broker, correspondent, and retail channels.
You may respond to all of the questions or only some questions.
Please note the number of any question to which you are responding at
the top of each response. If your responses are specific to a
particular reverse mortgage product option (e.g., fixed-rate, lump-sum
vs. adjustable-rate, line-of-credit products), please note in your
response to which product your response relates.
Please note that the Bureau is not seeking personally identifying
information (PII) in response to this request. Responses to this
request should not contain any reverse mortgage account numbers, Social
Security numbers or other personal information that could be used to
identify an individual consumer or account, nor should they include any
information that may otherwise reveal personally identifiable
information.
Factors influencing consumer decisions:
1. What factors are most important to consumers in deciding whether
to get a reverse mortgage?
2. What factors are most important to consumers in choosing among
products? Among other things, comments could address the choice between
fixed-rate, lump-sum reverse mortgages and adjustable-rate, line-of-
credit or monthly disbursement reverse mortgages.
3. What factors are most important to consumers in choosing among
potential lenders?
Consumer use of reverse mortgage proceeds:
4. Nearly 75% of recent reverse mortgage consumers took out all of
their available funds upfront in a lump sum.
a. What do consumers do with these funds?
b. Where do consumers place loan money that they do not use
immediately? (E.g., in a savings account, an investment account, a
certificate of deposit (CD), etc.).
5. Some reverse mortgage consumers use reverse mortgage loan funds
to refinance a traditional mortgage or home equity loan/line of credit.
a. What proportion of consumers are using reverse mortgage loan
funds to refinance a traditional mortgage or home equity loan/line of
credit?
b. What proportion of the loan funds are typically spent on paying
off an existing mortgage?
c. Do consumers using a reverse mortgage to refinance an existing
mortgage typically consider other options first (e.g. moving to a
different home or a traditional refinancing)? If not, why not? If so,
what factors lead them to choose a reverse mortgage instead?
6. Some reverse mortgage consumers use reverse mortgage loan funds
to consolidate non-housing debts.
a. What proportion of borrowers use reverse mortgage loan funds to
consolidate non-housing debts?
b. What proportion of the loan funds are typically spent on
consolidating non-housing debts?
c. What types of non-housing debts are typically consolidated (e.g.
credit card, auto, medical-related debt, etc.)?
Longer-term outcomes for reverse mortgages borrowers:
[[Page 39224]]
7. Consumers typically pay off their reverse mortgage loans earlier
than would be expected based on underlying mortality rates.
a. Why do consumers typically pay off their reverse mortgage loans
early?
b. Do consumers anticipate being able to pay off a reverse mortgage
at a specific time (e.g. upon receiving a pension or retirement
benefit) when taking the reverse mortgage loan?
c. Do consumers who pay off their loans early typically feel that
the loan was a good choice? Are there things they wish they had done
differently?
8. Some consumers pay off a reverse mortgage upon moving out of a
home.
a. Why do consumers decide to move? Are such moves typically
because the move is planned in advance or because the move is required
for health or other reasons?
b. How do reverse mortgage borrowers finance a later move?
9. What are the typical outcomes for borrowers who still have the
loan after 5 years or more?
a. Does the loan continue to meet borrowers' financial needs 5 or
more years after origination?
b. If borrowers have drawn all of their available funds, what
financial resources do they use to meet new or unexpected expenses?
c. Do borrowers who still have the loan after 5 or more years
typically feel that the loan was a good choice? Are there things they
wish they had done differently?
The differences in market dynamics and business practices among the
broker, correspondent, and retail channels:
10. How are brokers, correspondent lenders, and retail loan
officers typically compensated?
a. How does this compensation differ by channel?
b. How do compensation structures and regulatory requirements
(e.g., mortgage loan originator compensation rules) affect the business
practices of lenders and brokers?
c. How do these factors affect the choices presented to consumers?
11. The Bureau has observed that major large bank originators of
reverse mortgages tended to originate a far higher percentage of
adjustable-rate, line-of-credit (or monthly-installment) loans than the
nonbank originators. What explains this difference?
Dated: June 25, 2012.
Garry Reeder,
Acting Chief of Staff, Bureau of Consumer Financial Protection.
[FR Doc. 2012-16078 Filed 6-29-12; 8:45 am]
BILLING CODE 4810-AM-P
