The National Reverse Mortgage Lenders Association (NRMLA) has issued a new advisory opinion sponsored by its ethics committee and Board of Directors which encourages reverse mortgage industry participants to adhere to the association’s code of ethics when cultivating new professional partnerships, particularly in light of new and emerging types of fraud that can take advantage of more technology and automation in mortgage processes and services.
The opinion’s prudence rests in the fact that the reverse mortgage industry primarily serves people at or over the age of 62, given that the vast majority of industry activity takes place within the purview of the Home Equity Conversion Mortgage (HECM) program administered by the Federal Housing Administration (FHA).
According to data from the Government Accountability Office and cited in a report issued by the U.S. Senate Special Committee on Aging, seniors lose nearly $3 billion a year due to financial exploitation of some kind, though that figure is likely a conservative estimate considering that such crimes are largely believed to be underreported.
The advisory opinion from NRMLA
NRMLA published its advisory opinion on May 23 and issued a notice to its membership via an email alert on June 6. Because of emerging technology that can integrate certain mortgage services, highlighting the unique ways that these realities can affect reverse mortgage professionals and borrowers is necessary, the association…
