Consumer complaint received 2018-12-19
Company: Finance of America Holdings LLC
State: MS
Product: Mortgage
Sub-product: Reverse mortgage
Issue: Closing on a mortgage

Complaint:
Re : CFPB Complaint number : XXXX-XXXX  Date submitted to CFPB : XX/XX/XXXX Product : Mortgage -- Additional Info to previously filed complaint Last Week, XX/XX/2018 Mr. XXXX XXXX called to ask if I had any luck contacting my brother to pay the needed {$5000.00} to pay down credit card accts so the reverse mortgage could close. He stated without that lump sum, they could not continue with the process. I told Mr XXXX from the beginning the loan didn't involve my brothers and I did not want them to know about it. He brought them up out of the blue as a way to pay the {$5000.00} for payment on the credit card acct balances which are not overdue. Mr XXXX said he'd rather not run another credit report because additional charges would show up since the initial credit report was run. He said that would mean more than {$5000.00} needed to pay on the accts. He never said to whom the {$5000.00} would be paid. I assume it would be to the credit card companies. My concern is : How is the reverse mortgage company to know of the payment if they don't run another credit report to view the updated balances on the accts. Actually, the {$5000.00} or more was to pay off 2 accts. Again, if they don't run another credit report, how will they know those accts were paid off? Doesn't make sense. Also, he has never put anything in writing about this necessary {$5000.00} payment in order to continue processing the mortgage application. 

On the same day, he called asking about my brothers and if they were going to help pay this {$5000.00}, he mailed me an Good Faith Estimate which was revised due to an increase in the value of the property after Mr XXXX requested an appraisal and the report received by the mortgage company. No where did it mention this {$5000.00}. It gives a closing date for the mortgage as XX/XX/XXXX. 

Why send me this if he said they could not process the application until that {$5000.00} is paid? I have been on a roller coaster ride, emotionally, with this application. All seemed to be going well, all paper work going smoothly, notary hired for initial signatures, appraisal on the house, credit report, financial counseling, ... .from initial contact the first week in XXXX until early XXXX, a month, all was going well and I got my hopes up. Then he hit me with this {$5000.00} needed and mentioned bringing my brothers into the picture. I consider that an invasion of privacy. Mr XXXX was so gung-ho and stayed in constant contact until the subject of the {$5000.00} payment on credit card accts came up. The loan application is still on hold pending that {$5000.00}. I asked not to cancel at this time to see what transpires, if anything. He did state the mortgage company would pay the fees for the notary, appraisal, credit counseling ... .that is not in writing either. I don't trust them to pay those fees. They knew of the credit situation and my income from the first contact with them They were, in no way, blindsided by it and it shouldn't have come as a surprise ... .some 4 weeks later. 

It is beginning to sound rather fishy to me. Mr XXXX did admit he made a mistake but didn't seem to care about the emotional roller coaster he has sent me on. Something doesn't seem right to me. 

I am attaching the original complaint XX/XX/XXXX. Thank you. 

THIS BEGINS THE ORIGINAL COMPLAINT FILED XX/XX/XXXX -- -- -- -- -- -- -- -- - I contacted Finance of America Reverse on XXXX regarding a reverse mortgage. The agent was XXXX XXXX. Finance of America Reverse LLC ( XXXX ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX , CA XXXX Lender Case # XXXX As part of the process, they requested my credit report on day 1 of our discussions so they knew of my financial situation from the get go. They also knew that I am on Social Security retirement supplemented with SSI. They also knew my XXXX income from Social Security. There was nothing hidden from me. Mr XXXX never mentioned any problems and proceeded with the required credit counseling, followed by a notary to sign the the papers to continue the process. Also, an appraiser was sent to the house to get an up-to-date and accurate appraisal of the house. The appraisal was XX/XX/XXXX. Mr XXXX asked how much my raise with Social Security would be and said I was a few dollars short of the necessary income. I told him how much raise we were getting and estimated what my XXXX income would be. He said since it was so close, it would probably be no problem. So the process continued with the appraisal and notary to sign the necessary proposal papers. The fees for the professional services ( notary, appraiser and counselor ) was supposed to be paid at closing. I was given this rosy picture that I would have {$25000.00} at closing with more after a year. I heard no concern that it may all be in vain because of the info on the credit report which they had in front of them from the beginning. They also had my income and the expected raise by SS. I told them at the beginning I had no additional income. Knowing my financial situation ( Income and Credit Report ) they continued the reverse mortgage process. Two days ago I received a phone call from Mr XXXX saying due to my debt as stated on the credit report and income being so low, there wasn't much that could be done. He even told to call my brothers ( the only family I have left ) to pay down some of the debt I have and maybe that would help push the mortgage through ( {$5000.00} ). It's not that easy! Even if my brothers had that amount, it's doubtful they would hand that amount over to me. I've been stuggling along without anyone 's help and it's been rough. I have no one who really cares. That's right! I'm alone and this is how people take advantage of someone XXXX and alone in this world. Mr XXXX had no right to even bring my family in to the process. All families are not alike. With both my parents gone, they family is not as close as once was. Was Mr XXXX trying to get a feel as to their financial situation as well? Something doesn't seem right to me? I'm sitting with piles of paper and proposals. They had built up my hopes and now, I have XXXX XXXX XXXX XXXX XXXX. I struggle and will continue to struggle even more. ... and now, I have other worries on top of the mountain of worries I have now .... Who is going to pay the notary, credit counselor and appraiser that Mr XXXX ordered?? I can't and he is fully aware of that. Was all of this a way to take my house as a way to pay these services which he knew would not help me in any way whatsoever?? I feel as though I was conned by him or he just didn't know what he was doing. They knew everything from the beginning and still proceeded with the process and spoke frequently of the closing amount. I called 10 days or so ago and told him I wasn't sure I could make it financially to the end of the month and he said he was waiting on the appraisal which was due in that day. I had estimated the house using the amount set by the insurer. The actual appraisal came in higher so that wasn't the issue as to the quick refusal and being turned down. I'm at a loss now. They give me a ray of hope and now look at me. I can't buy groceries, one pair of shoes to my name and they are falling apart ... .no banks want to help ... I feel like I've been thrown away and not worth helping. How can someone like this company hurt people like they do?? Do they have a conscience whatsoever??? I've had a XXXX and afraid that's what will happen again. I have no one to take care of me. The people who treat folks like me so wrong should have to live my life with my worries. They'd never make it. Emotional duress is an understatement!!

Company response to consumer: Closed with explanation