Thursday, June 17, 2010

Washington, D.C. – Congresswoman Dina Titus of Nevada’s Third District sent the following letter to President Obama today urging him to support her efforts to protect seniors by regulating the reverse mortgage industry as part of the larger financial reform package.  Titus has been sending monthly letters to the administration on the foreclosure crisis in Southern Nevada.

Below is the text of the letter.

June 17, 2010

The Honorable Barack Obama
President of the United States
The White House
1600 Pennsylvania Avenue
Washington, D.C. DC 20500

Dear President Obama,

As the housing market continues to recover across the country, many homeowners will find that they are developing equity in their homes.  Some seniors will consider a reverse mortgage to supplement their income.  While this financial product can be appropriate for some, it is important that the reverse mortgage lending industry be subject to appropriate regulation to promote transparency and sufficient consumer protections.

During the House consideration of the Wall Street Reform and Consumer Protection Act, I offered an amendment with Congresswoman Jan Schakowsky to ensure regulation of the reverse mortgage industry.  This amendment, which was endorsed by AARP and received bipartisan support, would provide necessary consumer safeguards by requiring the new Consumer Financial Protection Agency (CFPA) to examine the reverse mortgage industry to ensure our nation’s seniors are not exposed to unfair and deceptive practices.  In addition, our amendment requires the CFPA to ensure that all disclosures relating to reverse mortgages are just as clear and easy to understand as all other mortgage products.  Unfortunately, similar language was not included in the version of the bill that was passed by the Senate.

Along with 15 of my colleagues, I sent a letter to Chairman Barney Frank and Chairman Christopher Dodd asking them to ensure that the language of the amendment is included in the final conference report.  I have attached a copy of this letter for your review.  I believe it is important that the CFPA have the necessary power and responsibility to protect our nation’s seniors. 

In your recent remarks as part of your telephone town hall for seniors, you noted that seniors “are more frequently targeted by scam artists,” and you have asked members of your cabinet to be vigilant in prosecuting those who attempt to scam seniors.  I believe this amendment will help to prevent seniors from falling victim to deceptive and unfair practices.  I hope that you will work to ensure that this language is included in the final version of this important legislation.

Thank you in advance,

Dina Titus
Member of Congress

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Tags: housing, seniors