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Title 12 — Banks and BankingRelease 119-73not60

§5602 Reverse Mortgage Study and Regulations

Title 12 › Chapter 53— WALL STREET REFORM AND CONSUMER PROTECTION › Subchapter V— BUREAU OF CONSUMER FINANCIAL PROTECTION › Part G— Regulatory Improvements › § 5602

Last updated Apr 3, 2026|Official source

Summary

Within 1 year after the designated transfer date, the Bureau must study reverse mortgage transactions. If the study shows rules or limits are needed to meet the law’s goals, the Bureau can make rules to protect borrowers—especially when a reverse mortgage is used to buy investments, annuities, or similar products, and to decide whether a borrower is suitable for that use. Those rules can say certain practices are unfair, misleading, or abusive. The Bureau can also create one combined disclosure that merges the required Truth in Lending, Real Estate Settlement Procedures, and Home Equity Conversion Mortgage disclosures, consistent with section 4302(d). The Bureau may issue rules, orders, or guidance about reverse mortgages before the study is finished.

Full Legal Text

Title 12, §5602

Banks and Banking — Source: USLM XML via OLRC

(a)Not later than 1 year after the designated transfer date, the Bureau shall conduct a study on reverse mortgage transactions.
(b)(1)If the Bureau determines through the study required under subsection (a) that conditions or limitations on reverse mortgage transactions are necessary or appropriate for accomplishing the purposes and objectives of this title,11 See References in Text note below. including protecting borrowers with respect to the obtaining of reverse mortgage loans for the purpose of funding investments, annuities, and other investment products and the suitability of a borrower in obtaining a reverse mortgage for such purpose.22 So in original. Sentence does not appear to be complete.
(2)The regulations prescribed under paragraph (1) may, as the Bureau may so determine—
(A)identify any practice as unfair, deceptive, or abusive in connection with a reverse mortgage transaction; and
(B)provide for an integrated disclosure standard and model disclosures for reverse mortgage transactions, consistent with section 4302(d),1 that combines the relevant disclosures required under the Truth in Lending Act (15 U.S.C. 1601 et seq.) and the Real Estate Settlement Procedures Act [12 U.S.C. 2601 et seq.], with the disclosures required to be provided to consumers for Home Equity Conversion Mortgages under section 1715z–20 of this title.
(c)This section shall not be construed as limiting the authority of the Bureau to issue regulations, orders, or guidance that apply to reverse mortgages prior to the completion of the study required under subsection (a).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This title, referred to in subsec. (b)(1), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see

Short Title

note set out under section 5301 of this title and Tables. section 4302(d), referred to in subsec. (b)(2)(B), probably was a reference to section 4302(d) of the House Engrossed version of H.R. 4173, 111th Congress. A later version of H.R. 4173 was enacted as Pub. L. 111–203, and as so enacted, doesn’t contain a section 4302. However, section 1032(f) of Pub. L. 111–203, which is classified to section 5532(f) of this title, contains substantially similar provisions to the section 4302(d) that was probably referred to. The Truth in Lending Act, referred to in subsec. (b)(2)(B), is title I of Pub. L. 90–321, May 29, 1968, 82 Stat. 146, which is classified generally to subchapter I (§ 1601 et seq.) of chapter 41 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see

Short Title

note set out under section 1601 of Title 15 and Tables. The Real Estate Settlement Procedures Act, referred to in subsec. (b)(2)(B), probably means the Real Estate Settlement Procedures Act of 1974, Pub. L. 93–533, Dec. 22, 1974, 88 Stat. 1724, which is classified principally to chapter 27 (§ 2601 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 2601 of this title and Tables.

Reference

Citations & Metadata

Citation

12 U.S.C. § 5602

Title 12 — Banks and Banking

Last Updated

Apr 3, 2026

Release point: 119-73not60