New Protections for Reverse Mortgage Borrowers
Plus, Car Buying Tips
The National Consumer Law Center (NCLC) has released some guidance regarding reverse mortgages and new foreclosure protections that will have a positive impact on borrowers.
As with other mortgages, foreclosures for reverse mortgages have been put on hold until after June 30, 2021. However, as that date approaches, it is important to understand what protections exist for reverse mortgage borrowers.
HUD’s May 6th Mortgagee Letter 2021–11 allows non-borrowing spouses of reverse mortgage borrowers to remain in their home after the borrower moves into a long term care or other healthcare facility. The new policy applies to all HECM loans that comprise a valid first lien security interest in the home, and lenders can comply effective May 6th, but must comply by September 3, 2021.
Photo by Phil Hearing on Unsplash
Also, the car market is pretty tight - here are some tips on how to navigate it:
“The problem,” says Jack Gillis, CFA’s Executive Director and author of The Car Book, “is that vehicle inventories are way down which means it’s a sellers’ market. Limited supply is a price-conscious car buyer’s biggest enemy.”
Vehicle inventory is down by about 30 percent which means car dealers have little incentive to negotiate. “The rule of thumb that nobody pays ‘sticker price’ for a new car has fallen by the wayside as dealers stick to the manufacturers suggest retail price (MSRP) on the vehicle label,” said Gillis. In fact, for some particularly popular vehicles in short supply, dealers are charging prices above sticker price.
Here are ten tips for car buyers from CFA:
1.Shop carefully. You can find some deals and incentives, especially on the less popular vehicles. Everybody is looking for SUVs, but if a sedan meets your needs, you can find some good prices.
2.Shop around online. As car buyers become more comfortable with online vehicle purchases, more and more dealers are offering internet specials. Shop carefully and read the fine print, but these offers can be good negotiating tools when you’re in the showroom.
3.Widen your search process. If buying from a dealer 70–100 miles away will save you money, consider it. You can still take your car to your local dealer for service and warranty work.
Deceptive Practices in Debt Settlement
“DMB Financial preyed on consumers who were struggling financially, charging millions of dollars in illegal upfront fees and hiding the true cost of its services,” said CFPB Acting Director Dave Uejio. “Charging upfront fees for debt settlement is a violation of federal law, and the CFPB will continue to act decisively when we see companies taking advantage of consumers in this way.”
DMB Financial is a Massachusetts-based debt-settlement company that operates in at least 24 states. DMB offers and provides services to settle or renegotiate unsecured debt on behalf of consumers.
Here’s some action that will happen if the court enters the order requested by the Consumer Bureau:
Refund harmed consumers: The order, if entered by the court, would impose a judgment of $7.7 million against DMB Financial, LLC, which would be suspended upon its paying consumers $5.4 million.
Stop deceptive practices: DMB Financial would be prohibited from engaging in the unlawful and deceptive practices alleged by the CFPB.