NRMLA wants reverse mortgage disclosures rebuilt from scratch

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1. NRMLA wants reverse mortgage disclosures rebuilt from scratch

NRMLA filed a comment letter urging the CFPB to create a disclosure framework designed specifically for reverse mortgages rather than adapting forward mortgage concepts that don't translate well.

The centerpiece ask: replace the current Total Annual Loan Cost presentation with dollar-based illustrations showing how loan balances and home equity change over time under multiple scenarios. NRMLA cited 2010 Fed consumer testing that found borrowers frequently misread TALC percentages as an interest rate that declined over time.

The group also wants the existing TILA reverse mortgage disclosure and HECM program disclosure combined into a single, plain-language document — eliminating generic forward mortgage materials and replacing the "Considering a Reverse Mortgage" booklet entirely.

2. Better pushes back on Garg's bid to regain control

Better's board fired Vishal Garg as CEO last week over a delayed 10-Q filing and governance concerns. Garg responded by claiming majority shareholder support and demanding reinstatement — then went further, contacting employees, vendors, and investors directly to build support for his return.

The board held firm. It appointed interim co-CEOs Kevin Ryan and Brittany Garland, retained outside counsel, formed a special committee, and said Garg's post-firing conduct only reinforced the decision to remove him.

Better has posted $1.5 billion in GAAP losses since 2022, and the delayed 10-Q has raised possible securities law concerns. Garg was briefly fired and reinstated in 2021. The board appears determined not to repeat that outcome.

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3. More Nuggets

🏦 Wealthfront takes its low-rate mortgage push into California. (Investing)

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📊 Mortgage insurers report another strong quarter of profits. (StockStory)

4. California fines Academy Mortgage $825K over 2023 data breach

California's DFPI penalized Academy Mortgage after finding serious cybersecurity failures that contributed to a 2023 breach exposing data for 284,443 people, including 34,452 California residents.

• Hackers installed malware, disabled security systems, and ransomware group AlphV later claimed credit. Academy didn't begin notifying customers until December 2023 — months after the breach was contained.

The DFPI found Academy hadn't conducted a comprehensive security audit between 2017 and 2023, lacked a documented asset inventory, had no up-to-date incident response plan, and failed to obtain a written forensic report after the breach.

Academy sold its retail lending operations to Guild Mortgage in February 2024 and has since ceased all origination and servicing activity. In addition to the fine, it must provide 12 months of free identity theft insurance to affected customers.

☀️ You’re all caught up. See you on Wednesday!

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