CSBS and AARMR issue reverse mortgage examination guidelinesMortgagePress.comCSBS, AARMR, reverse mortgage, examination guidelines, Reverse Mortgage Examination Guidelines, Nationwide Mortgage Licensing System
The Conference of State Bank Supervisors (CSBS) and the American
Association of Residential Mortgage Regulators (AARMR) have
released examination guidelines for reviewing the business
practices and operations of lenders and brokers selling reverse
mortgage loans to seniors.
CSBS and AARMR said state mortgage regulators should begin to
use the Reverse Mortgage Examination Guidelines (RMEGs) in early
2009. A reverse mortgage is secured by a lien on the residential
real estate in which the older loan recipient does not make
payments until the homeowner leaves the property.
"Reverse mortgages are an area of emerging risk for consumers,
and the states are aggressively getting ahead of the curve, just as
the states were ahead of the curve on consumer protection when we
began building the Nationwide Mortgage Licensing System five years
ago," said Pennsylvania Deputy Secretary of Banking David
The examination guidelines cover all aspects of operations from
policies and procedures to marketing, underwriting, quality control
and servicing of a reverse mortgage portfolio.
"These loans are complex and marketed to a potentially
vulnerable target audience, increasing the need for strong consumer
protections," said Chief Risk Officer of the Massachusetts Division
of Banks John Prendergast, who chairs the CSBS/AARMR Task Force on
For a copy of the guidelines, click