Reverse Mortgage Companies Accused of Shady Practices

Posted by Charles D

September 30, 2008

STEVEN L. ANTONAKES, commisioner Division of Banks Massachusetts

The Boston Globe, reported that 4 mortgage brokers were recently sent cease and desist orders in violation of state law from the Massachusetts Division of Banks. The brokers/lenders were accused of using shady marketing tactics, which many seniors are prime targets. People who mistreat children and seniors will have a special place in the afterlife, and it will have a major shortage of air conditioning.

Reverse mortgages are loans that enable senior homeowners, typically 62 years and older, to convert the equity in their home into income. State law prohibits a lender from making a reverse mortgage without a plan that has been approved.

Of the actions taken today, three were against First Call Mortgage Company, Inc., Sun West Mortgage Company, Inc., and Gold Reverse, Inc. for making reverse mortgage loans to Massachusetts seniors without an approved plan.

In the case of First Call Mortgage, the company was also cited for unfair and deceptive practices for altering mortgage loan documents and misrepresenting applicants’ incomes. All three companies have been prohibited from accepting any new mortgage applications and have been ordered to place all pending applications with a qualified lender at no cost to the consumer. The companies were ordered to provide the state with copies of files for all reverse mortgage loans.

Full Story