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NY attorney general launches investigation of reverse mortgage practices – report

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Mortgage Professional America | 20 Jan 2017, 08:15 AM Agree 0
The New York attorney general is reportedly investigating reverse mortgage servicing practices at units of Nationstar Mortgage and OneWest bank
  • Sandyj | | 20 Jan 2017, 06:21 PM Agree 0
    Anyone who doesn't have a reverse mortgage now and is thinking about it might want to wait until the HUD OIG investigation of Financial Freedom, the NY Attorney General investigation of Champion and Financial Freedom/OneWest Bank, and the dust settles from Walter Investments One Reverse Mortgage exiting the market, and the fallout from the penalties from the RMS whistleblower get sorted out. CIT has set aside $163,000,000 for the settlement of the HUD investigation, $500,000,000 for claims after the settlement, and then there is the $230,000.000 "shortfall" that is possibly for FAH interest not allowed to Financial Freedom. This is a lot of money to make up with a lot of new reverse mortgage sales needed to do it. Beware, it might look good up front but it has to be right for you in the long term and no one is going to help you determine that when you are getting one. Maybe consumers should ask for a written guarantee as to how a reverse mortgage is a safe government insured mortgage, that will let you stay in your home for life, provide extra income, let you live a better life and provide financial security in retirement and finally meet your wishes for your estate.
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