Consumer complaint received 2021-07-12
Company: Finance of America Holdings LLC
State: CA
Product: Mortgage
Sub-product: Reverse mortgage
Issue: Closing on a mortgage

Complaint:
In the year XXXX, my husband and his colleague forced me into a reverse mortgage against my will. This loan was orchestrated under severe duress for fear of divorce. Both my husband and the loan officer knew of my objections and the fact that I did not want to sign the loan documents. I had repeatedly expressed my fear and duress about this type of loan. My duress was in emails as well as phone conversations. Under direct threat of divorce, I was required to close the loan. It was not until months later that I discovered they were planning another reverse mortgage however, this time, a jumbo reverse loan whereby I would have to sign a quit claim deed and hand over my trust fund as a " gift '' deposit. This was a carefully orchestrated plan to protect my husband. Again, I was given the ultimatum to sign the quit claim deed, remove all marital interest and turn my deposit into a " gift '' or my husband would file divorce papers. When I asked for different type of loan that had spousal protections, I was refused by my husband and told this was the only type of loan he could secure. After speaking to my trust attorney, I ultimately declined because of the risk. My husband filed for divorce within weeks of cancelling the loan. It was not until I found a letter detailing out how the reverse mortgage would benefit my husband in the event of divorce since I am the younger spouse. Both my husband and his loan officer knew this and orchestrated this loan with the intent to give him leverage to retain our marital home as well as the purchase of a new home. Through further investigation with my accountant, it was also discovered that my husband was paying this loan officer money outside of their mortgage company. These were large sums. Both my husband and this loan officer worked for the same finance company at the time and paying someone under the table for working on his loans while both were employed by the same company would be a breach in fiduciary duties as well as non reporting of overtime. This was not the only time my spouse and this loan officer committed mortgage fraud. In XXXX Both my husband and his loan officer knowingly closed loans as owner occupied for my husband 's son with the intent to gain a lower interest rate on a purchase. This property was never intended to be owner occupied. The house was already rented prior to closing the escrow. I was again under fear of divorce and physical harm if I exposed any of this information. Now that I have protection and legal representation, I can request an investigation. I have a reverse mortgage that should have never been consummated. I never agreed to the terms. I have emails and direct conversations with his loan officer as well as my husband which she would and could testify to my duress of the loan and my objection to signing the loan documents. The notary can also testify to my objections and duress I faced during the signing. I was under threat to sign the loan documents. It was not of my own free will. 
The lender was Finance of America and Finance of America Reverse.

Company response to consumer: Closed with explanation