Three reverse mortgage companies were collectively fined $790,000 by the Consumer Financial Protection Bureau (CFPB) for using deceptive advertising that claimed consumers could not lose their homes, USA Today reported today. American Advisors Group, Reverse Mortgage Solutions and Aegean Financial reached consent agreements with the CFPB after the regulator's investigation found they used ads whose scripts featured similarly misleading though reassuring claims. Consumers with reverse mortgages can "live in your home for the rest of your life" "stay in your home forever" and "never ever be forced from your home,” according to the ads. Reverse Mortgage Solutions based in Houston and licensed in 48 states, said it was pleased with the settlement and "will continue to focus our efforts on improving our procedures for the future." American Advisors Group, licensed in 49 states and the District of Columbia, said in a formal statement that it takes its regulatory responsibilities seriously and has made a significant investment in its compliance and legal infrastructure to conform to all marketing laws and rules. Along with paying the financial penalties, the companies are required to make clear and prominent disclosures in their reverse mortgage ads and use internal oversight systems to ensure they are obeying all laws.
