FFIEC RMP IFR Press Release

FFIEC Press Release - August 6, 2009

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Press Releases

Federal Financial Institutions Examination Council

Press Release

For Immediate Release

December 17, 2009

Financial Regulators Propose Guidance on
Reverse Mortgage Products
The Federal Financial Institutions Examination Council (FFIEC), on behalf of its members,
released proposed guidance today on reverse mortgage products. The guidance is designed to help
financial institutions ensure that their risk management and consumer protection practices
adequately address the compliance and reputation risks raised by reverse mortgage lending.

The proposed guidance addresses the general features of reverse mortgage products, relevant legal
requirements and consumer protection concerns raised by reverse mortgages. The proposed
guidance focuses on the need for banks, thrifts and credit unions to provide clear and balanced
information to consumers about the risks and benefits of these products.

Such information should be provided while consumers are making decisions about these products
and should address the specific matters listed in the guidance, including informing consumers of
available alternatives to reverse mortgages. The proposed guidance also states that institutions
should require that consumers receive qualified independent counseling and take steps to avoid any
appearance of a conflict of interest. The proposed guidance addresses related policies, procedures,
internal controls, and third-party risk management.

Comments must be received 60 days from publication in the Federal Register. The proposed
guidance is attached.

Reverse Mortgage Products: Guidance for Managing Compliance and Reputation Risks (docx)
(pdf)

Media Contacts:
Federal Reserve
FDIC
NCUA
OCC
OTS
FFIEC's State Liaison
Committee

Barbara Hagenbaugh
David Barr
Cherie Umbel
Dean DeBuck
William Ruberry

(202) 452-2955
(202) 898-6992
(703) 518-6337
(202) 874-5770
(202) 906-6677

Catherine Woody

(202) 728-5733

The Federal Financial Institutions Examination Council was established by the Congress in 1979 to
prescribe uniform principles, standards, and report forms for the federal examination of financial

http://www.ffiec.gov/press/pr121709.htm

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FFIEC Press Release - August 6, 2009

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institutions, to make recommendations to promote uniformity in the supervision of financial
institutions, and to conduct schools for examiners. The Council has six voting members: the
Comptroller of the Currency, the Chairman of the Board of Directors of the Federal Deposit
Insurance Corporation, a Governor of the Board of Governors of the Federal Reserve System, the
Director of the Office of Thrift Supervision, the Chairman of the National Credit Union
Administration, and the Chairman of the State Liaison Committee. Visit the Council’s website for
press releases and information on the mission and work of the Council at http://www.ffiec.gov.

http://www.ffiec.gov/press/pr121709.htm

3/26/2010