Students Turning to Grandparents to Help Pay for College

How are families paying for college? Grandparents. Or, at least, grandparents and other relatives are kicking in more for a student’s education. The amount of money from relatives — often grandparents — and friends rose to an average of $1,247 this year, a 40 percent increase over last year. That’s according to Sallie Mae’s annual report, “How America Pays for College,” which is based on a survey of 1,600 parents and students. Enter the $50K Picture Your Retirement Sweepstakes. See …

CFPB: Reverse Mortgage Ads Can Confuse More Than Inform

Advertisements touting reverse mortgages often leave older consumers confused about the loan terms and unaware of the risks, according to a new report from the Consumer Financial Protection Bureau. “Perhaps most concerning of all, the ads left the consumers believing that if they purchase a reverse mortgage loan, they will be able to rest assured that they can live in their homes and enjoy financial security for the rest of their lives,” CFPB Director Richard Cordray said in a teleconference. …

Reverse Mortgages Now Harder to Get

If you’ve thought about taking out a reverse mortgage, be aware that new rules that recently kicked in might make it harder for you to qualify. The U.S. Department of Housing and Urban Development tightened lending criteria late last month. The changes require that lenders determine whether would-be borrowers have enough income to keep up with property taxes and homeowners insurance so they don’t default on the loan and, possibly, lose their home. HUD’s Federal Housing Administration insures most reverse mortgages. …

Lending to Relatives? What You Need to Consider

Sonny has bad credit and needs a small business loan. Of course you want to help, but can you make the payments or afford losing collateral if he defaults? Your daughter is going through a divorce and she needs the security deposit for her new apartment. If you give it to her, can you count on her to pay it back? Auntie wants to go to Las Vegas and has asked her children, nieces and nephews to pitch in so …

Surprise! Reverse Mortgages Are Very Confusing

A three-year examination of reverse mortgage complaints to the Consumer Financial Protection Bureau shows that borrowers often didn’t understand the terms of those loans, including how quickly their loan balances would go up and their home equity would fall, the bureau said in a new report. Reverse mortgages allow homeowners age 62 and older to tap into the equity in their homes. They’re different from home equity credit lines or home equity loans because a reverse mortgage generally is paid back only when the homeowner …

Regulator Seeks Greater Oversight of Auto Financing

The Consumer Financial Protection Bureau wants to extend its oversight to large nonbank auto-finance companies to make sure they are not discriminating against consumers. The CFPB announced today its proposed rule to expand its supervision to these companies, which would include the finance arms of auto manufacturers. “Nonbank auto-finance companies extend hundreds of billions of dollars in credit to American consumers, yet they have never been supervised at the federal level,” CFPB Director Richard Cordray said in a statement. “Today’s proposal …