Consumer Agency: Beware Mortgage Deception
The government is warning lenders about misleading seniors and veterans, and consumers to watch out for these signs of trouble.
The Consumer Financial Protection Bureau is cracking down on deceptive advertising for home loans…
Be suspicious of ads with:
- Official-looking seals or logos that imply some kind of government status, for example making you think they come from the VA or HUD. Although government agencies do guarantee some loans, they are not involved in the actual lending or advertising of loans.
- Promises of amazingly low rates – which may turn out in the fine print only be in effect for a short period and then will readjust to a higher amount.
- Promises that a reverse mortgage will let you stay in your home payment-free. Typically borrowers with reverse mortgages still have to keep up with tax and insurance payments – and will most likely lose their homes if they don’t.
- Announcements of “pre-approval” and large amounts of cash or credit available to you. Typically there’s no guarantee that you will be approved for a loan, or the size of the loan, until you go through a standard qualification process.
If you need help assessing an offer, Ask the CFPB.
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