Mortgage Daily Logo
mortgage news from industry experts

Mass. Cracks Down on Reverse Lenders

Mortgage regulators in Massachusetts have issued cease-and-desist orders against four reverse mortgage companies. Among the charges were mortgage fraud, deceptive advertising and failure to comply with reverse lending requirements.

The orders were issued by the state’s Division of Banks, a statement said today.

Three lenders — First Call Mortgage Company Inc., Sun West Mortgage Company Inc. and Gold Reverse Inc. — were cited for not submitting a reverse mortgage program to the Commissioner of Banks for review and approval prior to offering such a program, as required by M.G.L. c.183, Section 67 and M.G.L. c. 167E, Section 7.

Even banks and credit unions that are exempt from licensing are required to submit a lending plan for making home-equity conversion mortgages.

In addition, First Call was cited for committing mortgage fraud on files submitted to wholesale lenders. In one case, an application stated a borrower made $138,000 annually, even though the state was able to read a blacked-out form in the loan file that indicated annual income of just $57,270.

“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 state said in its announcement. “In addition, the companies were ordered to provide the division complete copies of files for all reverse mortgage loans.”

A cease-and-desist order was also issued against American Advisors Group. The mortgage broker was accused of unfair and deceptive advertising practices involving reverse mortgage products.

American Advisors allegedly marketed reverse mortgages as government benefits in a direct mail campaign.

“The division’s order forbids American Advisors Group from initiating any new mortgage loan transactions and requires pending applications to be placed with a qualified lender or broker at no cost to the consumer,” the state said. “In addition, the company has been ordered to cease its advertising in Massachusetts and provide the division with a complete list of all individuals that its direct mail advertisements were sent to.”

In the Matter of First Call Mortgage Company, Inc, Andover, MA, Mortgage Company License No(s). MC3198 et al

Docket No. 2008-020, COMMISSIONER OF BANKS MORTGAGE LENDER AND MORTGAGE BROKER LICENSING, COMMONWEALTH OF MASSACHUSETTS

In the Matter of Gold Reverse, Inc. f/k/a Pacific Community Mortgage, Inc., Anaheim, CA, Mortgage Company License No. MC4718 et al

Docket No. 2008-023, COMMISSIONER OF BANKS MORTGAGE LENDER AND MORTGAGE BROKER LICENSING, COMMONWEALTH OF MASSACHUSETTS

In the Matter of Sun West Mortgage Company, Inc., Cerritos, CA, Mortgage Lender License No. ML3212

Docket No. 2008-021, COMMISSIONER OF BANKS MORTGAGE LENDER LICENSING, COMMONWEALTH OF MASSACHUSETTS

In the Matter of American Advisors Group, Irvine, CA, Mortgage Lender License No. MB5106

Docket No. 2008-022, COMMISSIONER OF BANKS MORTGAGE BROKER LICENSING, COMMONWEALTH OF MASSACHUSETTS

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION