Of course, your bank can foreclose your house for
mortgage nonpayment, and your car can be repossessed if you miss car loan payments, as these are not covered by Chapter 7.
Other more general MAPs Rule requirements that also are important for reverse
mortgage advertising include not making a material misrepresentation regarding: (i) the potential for default under the
mortgage, including misrepresentations concerning the circumstances under which the consumer could default for
nonpayment of taxes, insurance, or maintenance, or for failure to meet other obligations; (ii) the effectiveness of the
mortgage in helping the consumer resolve difficulties in paying debts, including misrepresentations that any
mortgage can reduce, eliminate, or restructure debt or result in a waiver or forgiveness, in whole or in part, of a consumer's existing obligations with any person, or (iii) that the
mortgage is or relates to a government benefit, or is endorsed, sponsored by, or affiliated with any government or other program, including through the use of formats, symbols, or logos that resemble those of such entity, organization, or program.
Proposed comment 37 (c)(1)(i)(C)-1 would have stated that «
mortgage insurance» means insurance against the
nonpayment of, or default on, an individual
mortgage, and that, for purposes of proposed § 1026.37 (c), «
mortgage insurance or any functional equivalent» would have included any
mortgage guarantee that provides coverage similar to
mortgage insurance (such as a United States Department of Veterans Affairs or United States Department of Agriculture guarantee), even if not technically considered insurance under State or other applicable law.