Mortgage Solutions (RMS) and Champion Mortgage’s reverse-mortgage operations
The action comes as a result of an article published in the New York Post
on July 23, 2016, which noted a sharp increase in foreclosure cases against New York homeowners with reverse mortgage
DFS is investigating the case of Frederick Feil, a 67-year-old homeowner in Howard Beach, who fears he’ll become homeless if he loses a foreclosure battle against Finance of America Reverse
on a loan that was serviced by RMS. The foreclosure filing failed to include the amount of alleged arrears – a common omission in such cases. According to legal services attorneys, delinquent charges often total just $10,000 on average.
Numerous other complaints about reverse mortgage
s that were serviced by RMS, a division of Walter Investment Management Corp., as well as Champion, a division of Nationstar Mortgage, are also being investigated. The DFS has set a deadline of August 17 for detailed breakdowns of all the reverse mortgage
s that the two firms have serviced for New York consumers, or that Champion has originated related to New York properties, extending back to 2009.
DFS has secured more than $6 billion in fines, largely from foreign banks, and $7 million in fines from the mortgage industry since its creation in 2011. The department was created to oversee a broad array of financial products and services, and is committed to bringing an end to Wall Street’s misdeeds.
The New York State Department of Financial Services (DFS) has launched a wide-ranging probe into