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Title 12, Banks and BankingRelease 119-110

§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 Sep 23, 2026|Official source

Summary

Within 1 year after the designated transfer date, the Bureau must study reverse mortgage transactions. If the Bureau finds rules are needed to meet the law’s goals—like protecting borrowers who use reverse mortgages to buy investments, annuities, or other products, or checking whether a borrower is suitable for that use—it can make regulations. Those rules may call practices unfair, deceptive, or abusive. They can also create one set of model disclosures that combines the required disclosures now found under TILA, RESPA, and the Home Equity Conversion Mortgage rules. The Bureau may also act on reverse mortgages before the study is finished.

Full Legal Text

Title 12, §5602

Banks and Banking, Source: USLM XML via OLRC

(a)Study
Not later than 1 year after the designated transfer date, the Bureau shall conduct a study on reverse mortgage transactions.
(b)Regulations
(1)In general
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, 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.
(2)Identified practices and integrated disclosures
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)Rule of construction
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

Sep 23, 2026

Release point: 119-110