Reverse Mortgage problems… the issues are ongoing
I posted about Reverse Mortgages two weeks ago. We received some excellent and helpful e-mails in response, as well as several comments here on the Legal Examiner.
One of those comments suggests that our information is old and outdated.
Actually that is simply not true….. Further, I am certainly not alone in my concerns.
I want to direct you to several very recent links and the report of one recent settlement between the Federal Government and Reverse Mortgage Solutions.
First this, a recent (July 2015) article in Consumer Reports. Please read the comments section, which, like my earlier post, attracted comments from several people who earn a living selling reverse mortgages.
Second, in June 2015, the US Government, Consumer Financial Protection Bureau issued an Advisory Warning,regarding false advertisements regarding reverse mortgages, which includes a link to that Agency’s report about false and misleading Reverse Mortgage advertising.
Third, in November 2015, the Office of the Inspector general of the US Department of Government Housing and Urban Development issued a report regarding appraisal fraud in reverse mortgages, here.
Finally, in September 2015, Walters Investment Management Corporation, the parent corporation of Reverse Mortgage Solutions, agreed to settle, and paid more than $29 million to the Government, where it was alleged that: “Walter Investment Management Corporation, Reverse Mortgage Solutions, and other entities engaged in a scheme to defraud HUD by failing to disclose in FHA insurance claims that certain required servicing actions on reverse mortgages were not completed according to HUD regulations within the required timeframes. The relator also alleged that Reverse Mortgage Solutions used a straw corporation to keep commissions on the sale of properties it liquidated.”
The Government report of that settlement is here.
We don’t know yet when and how our ongoing suit for Mrs. Gravlin will resolve, howver, I just wanted to make sure that the information I wrote about earlier wouldn’t simply be viewed as “old news”.
I’ll keep you posted.