usc 12 § 5602
Reverse mortgage study and regulations (BANKS AND BANKING (12 U.S.C.))
Operative Text
Not later than 1 year after the designated transfer date, the Bureau shall conduct a study on reverse mortgage transactions. 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. The regulations prescribed under paragraph (1) may, as the Bureau may so determine— identify any practice as unfair, deceptive, or abusive in connection with a reverse mortgage transaction; and provide for an integrated disclosure standard and model disclosures for reverse mortgage transactions, consistent with section 4302(d), that combines the relevant disclosures required under the Truth in Lending Act ( et seq.) and the Real Estate Settlement Procedures Act [ et seq.], with the disclosures required to be provided to consumers for Home Equity Conversion Mortgages under . 1 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).
Under 12 U.S.C. § 5602, the Consumer Financial Protection Bureau (CFPB) was directed to study reverse mortgage transactions within one year of its designated transfer date. Based on that study's findings, the Bureau may issue regulations placing conditions or limitations on reverse mortgages — particularly around their use to fund investments, annuities, or similar products — and may label certain practices as unfair, deceptive, or abusive. The provision also authorizes the Bureau to develop integrated disclosure standards combining Truth in Lending Act and RESPA disclosures, and it explicitly preserves the Bureau's authority to act on reverse mortgages even before the study is complete.
Plain English — not legal advice.
While 12 U.S.C. § 5602 is primarily directed at lenders and mortgage servicers rather than traditional landlords, property owners who offer or facilitate reverse mortgage arrangements should be aware that the CFPB holds broad authority to define and prohibit unfair, deceptive, or abusive practices in this space. Operators generally ensure that any reverse mortgage-related disclosures they are involved in align with integrated standards the Bureau may establish under this section. Staying current with CFPB guidance issued under § 5602 — including any rules issued before the formal study's completion — is a hallmark of compliant practice.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For homeowners or borrowers considering a reverse mortgage, 12 U.S.C. § 5602 establishes that the CFPB has the authority to set rules protecting consumers, including those who might be steered toward using reverse mortgage proceeds for investments or annuities. If a borrower believes a lender engaged in an unfair, deceptive, or abusive practice in connection with a reverse mortgage transaction, the CFPB's complaint process is one avenue available under the framework this section supports. Tenant-rights organizations and HUD-approved housing counselors can also help individuals understand what protections and disclosure rights may apply under § 5602 and related regulations.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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