Feds crack down on deceptive reverse-mortgage ads

Feds crack down on deceptive reverse-mortgage ads

The federal Consumer Financial Protection Bureau said Wednesday that it has fined two Southern California reverse-mortgage firms for deceptive advertising practices, saying the companies wrongly told borrowers they could not lose their homes.

American Advisors Group in Orange agreed to pay a civil penalty of $400,000, and Aegean Financial, an El Segundo firm that also does business as Jubilados Financial and Reverse Mortgage Professionals, will pay $65,000. Both companies agreed to change their loan disclosures, though neither admitted wrongdoing.

Reverse mortgages, which are aimed at homeowners who are retired or approaching retirement, give homeowners cash in exchange for...