Mortgage Acts and Practices - Advertising Rule #00009 

Submission Number:
00009 
Commenter:
D  Coe
State:
Utah
Initiative Name:
Mortgage Acts and Practices - Advertising Rule

I agree with many of the proposed regulations. Consumers need advertising to be thorough and explain the loan terms clearly. One possible area I see that could be better clearer in their advertising is in reverse mortgages. I have seen advertising in this area that seems unclear at best. These loans can be more confusing due to there being no monthly payment and especially when it includes an interest rate that fluctuates. What happens to the interest due and how it is to paid back in very unclear. The few seniors I have had contact with that were considering this type of loan, didn't seem to have a good understanding of how the money would be repaid - it just seemed like free money to them. An example of the type of advertising I am referring to can be found on www.reverseutah.com under their FAQ section. Here their website states: