Alert
Close

How Does Your Brain Score? Take the Staying Sharp Brain Health Assessment

AARP Strongly Criticizes Proposed Truth-in-Lending Act Revisions

FOR IMMEDIATE RELEASE

December 23, 2010


CONTACT

Media Relations

202-434-2560


AARP Strongly Criticizes Proposed Truth-in-Lending Act Revisions 

Rules Undermine Consumer Protections, Break with Congressional Intent, AARP Charges


WASHINGTON, DC - In a letter to the Federal Reserve Board of Governors challenging the Fed’s proposed Truth-in-lending (TILA) Mortgage Regulations, AARP reiterated its strong criticism of the proposed rules.  AARP’s letter to the Fed this week detailed criticisms the Association had outlined earlier relating to the proposed rules on reverse mortgages and consumers’ rescission rights. The following quotes from the December 21, 2010 letter are from AARP Legislative Policy Director David Certner:

  

“We continue to believe that the [proposed regulations] greatly undermine existing consumer protections, break with Congressional intent, and exceed the rulemaking authority given to the Board.”


“[T]he Board, in our view, has used its exemption authority to create new legal requirements that are not consistent with the clear language of the relevant statutory provisions.”


“AARP is concerned that the proposed rule preempts the specific authority delegated to the Consumer Financial Protection Bureau (CFPB) by the Dodd-Frank Wall Street Reform and Consumer Protection Act [P.L. 111-203] to study marketing practices and issue regulations governing reverse mortgage transactions.”  


“AARP strongly opposes the inclusion of a “safe harbor” that would effectively open the door for the “cross–selling” of any financial or insurance products to a reverse mortgage borrower so long as it is done 10 days after the loan has been made.”  


 “[T]he Board’s proposal evidences no consideration of the kinds of borrowers that will be impacted by the rule change. [15 U.S.C. § 1604(f)(2)(C)] In our experience, borrowers seeking to rescind are most often those who have been the victims of one or more predatory and abusive mortgages that have left them financially ravaged and facing the loss of their homes.  The proposal fails to acknowledge this reality and leaves consumers more vulnerable to future potential abuses.”


“AARP believes the proposed changes relating to tender turn TILA rescission on its head and unjustifiably hold the consumer’s rescission hostage to the tender obligation.“


“Considering the current, long-term housing crisis, we find it difficult to justify the Board’s exercise of its exemption authority to deprive consumers of the benefits and protections of rescission and to substitute rules that are far less protective. While AARP acknowledges the practical difficulties embedded in the rescission process, we do not believe the Board’s rescission proposal is a fair or justified exercise of its exemption authority. “


For more information about reverse mortgages, go to www.aarp.org/revmort.  For a full copy of the January 21, 2010 AARP letter to the Federal Reserve Board of Governors, please email media@aarp.org or call 202-434-2560.  


#  #  #


AARP is a nonprofit, nonpartisan social welfare organization with a membership that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 35.1 million readers; AARP Bulletin, the go-to news source for AARP's millions of members and Americans 50+; AARP VIVA, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.


Search Press Center

MEDIA CONTACTS

If you are an AARP member and not with the press, call 1-888-OUR-AARP or email member@aarp.org.

 

For media inquiries, please contact the AARP Media Relations Office at (202) 434-2560 or media@aarp.org.

 

Facebook: AARP Media Relations

Twitter: @aarpmedia

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

 

Member Benefits AT&T Wireless Cell Phone

Members save 10% on the monthly service charge of qualified AT&T wireless plans.

Member Benefit AARP Regal 2

Members pay $9.50 for Regal ePremiere Tickets purchased online.

Walgreens 1 discount membership aarp

Members earn points on select Walgreens-brand health and wellness products.

Member Benefits

Join or renew today! Members receive exclusive member benefits & affect social change.

Advertisement