Consumer complaint received 2021-08-18
Product: Mortgage — Reverse mortgage
Issue: Closing on a mortgage — 
Company: AMERICAN ADVISORS GROUP (FL)

I contacted AAG ( American Advisors Group ) about a reverse mortgage in XXXX, XXXX. My contact at AAG was XXXX XXXX. He explained the process and what was required to secure a reverse mortgage. In XXXX decided to move forward with the application process. 

A counseling session was scheduled, then an appraisal of the house - and all went well. My credit rating is in the low 800s, and the house was appraised at {$860000.00}. ( Later on in the process I was told by XXXX in an email, that was all meaningless. ) As a result of the appraisal, it was determined that the loan would be for {$420000.00} and the closing costs would come out of the proceeds which would net me {$390000.00}. I was assured that the appraisal fee and counseling fee were the only out-of-pocket expenses. I had explained to XXXX and to the counselor that I needed the funds for living expenses, so I could stay in my home and avoid selling shares in my company which I had expected to greatly appreciate in value over the next two years. 

All of the supporting documents requested for income and expenses were submitted by the end of XXXX. I was then introduced via email to XXXX XXXX on XX/XX/XXXX, a processor who would be taking the loan to closing. 

The following is the chain of events that followed over the next 7 weeks. Copies of emails to follow. 

XX/XX/XXXX I asked for an update and was told by XXXX that my loan was being submitted for clear to close and we are just about at the finish line. And I hope to be scheduling the closing with you next week. 

XX/XX/XXXX I learned that XXXX was no longer involved and XXXX XXXX was my new processor. She requested a copy of my most recent XXXX statement, which I sent on XX/XX/XXXX. 

XX/XX/XXXX Email from XXXX all conditions should be approved within 48 hours and the loan should move to clear to close. 

XX/XX/XXXX XXXX requested copies of my checking accounts, and stock accounts. Apparently, the loan process had now dragged on to the point where everything I had provided in XXXX was outdated and underwriting now needed current statements. I am beyond frustrated at this point and I expressed my frustrations in an email to XXXX and XXXX. 

XX/XX/XXXX In an email response from XXXX, he wrote First, the loan is approved. And then he goes on to explain about the delays in the process and why the underwriters are requesting more info. He also explained there was concern because the balances in my checking account had dropped {$30000.00} since XX/XX/XXXX. Im confused at that point since it was understood that I was applying for the loan because I had household repairs and expenses that needed to be taken care of, and since I was assured on more than one occasion that this was a done deal, I had moved forward with many of those expenses. No one had ever mentioned the amount of funds that were required for me to close. My income and expenses had not changed since the day we first spoke in XXXX. 

XX/XX/XXXX I submitted via email all of the requested statements which showed that the CASH I had in checking accounts totaled {$65000.00}. I also explained that I had funds in an investment club ( with four friends ) which added another {$22000.00}. I was then asked to provide supporting statements for the investment club. I was told on XX/XX/XXXX that the {$22000.00} would not be included because my share of ownership is at 24.396 % and I must own 25 % of the company. XXXX refers to it as a company, not stock ownership so there is much confusion there. 

More emails going back and forth where I offer to provide copies of XXXX for investments I have in other businesses. No response. This is not looking good and I have no idea why. 

XX/XX/XXXX I followed up with XXXX via email and once again asked for an update. In the same email, I let him know that I would be leaving for Michigan and would be having my mail held. I told him that I was also concerned about AAG sending anything via XXXX, since I did not want any packages or envelopes sitting at my front door while I was away. This happened once before and I was trying to avoid it happening again. 

XX/XX/XXXX Since I had heard nothing, I once again followed up and asked for an update. I received a one line email from XXXX XXXX that said We still need asst statements in your name only. No details, just that one line. I was confused. What else? I had already sent everything she requested on XX/XX/XXXX. 

At that point, I had no idea what else they were looking for. The loan approval wasnt going any further and I had no idea why. I once again expressed my frustration with the process, the miscommunication, and all the false hope that I had been given. 

XX/XX/XXXX I was told by XXXX in an email that the second income and asset check revealed a dramatic change in your funds and indicated you were short of the residual income necessary. THIS was the first I was hearing about residual income necessary to close. And {$65000.00} wasnt enough? The closing fees were supposed to come out of the loan proceeds anyway. But according to XXXX, the loan wasnt going any further without proof of additional assets. 

And it gets worse. 

XX/XX/XXXX - I returned from Michigan and found a letter in my held mail, that was dated XX/XX/XXXX ( the day l notified them I would be traveling ). The letter states Closing Instructions ; Note : Need assets totaling $ XXXX in borrowers name alone. And according to the letter, it was needed by XX/XX/XXXX ( that very day ). I was so confused at this point. What was all the back and forth concerning lack of adequate funds and additional assets. I had already provided them with proof that I had MORE than that ( {$65000.00} ) when I submitted all the bank statements on XX/XX/XXXX!!! 

I wrote to XXXX immediately and attached a copy of the letter, hoping it could still be salvaged. He responded via email at XXXX that night, telling me that even though the letter was sent with his name on it, it was the first he was seeing it - and that it was sent by the processing department. AND in that same email he wrote based on your inability to produce more assets and your displeasure with the process, I gave instructions to cancel the loan. 

So my loan was cancelled because I was unhappy? 

Or, was my loan cancelled because - unlike the claims made in AAGs commercials - reverse mortgages are really NOT meant for seniors who need the money in order to stay in their homes? 

Or, was the loan cancelled because the internal communications were so bad within AAG that XXXX really had no idea that processing XXXX XXXX? ) had sent a letter to me with his name on it detailing exactly what was needed in order to close. If he had emailed this extremely important, time sensitive letter ( knowing that I was traveling ) instead of allowing it to sit in my held mail this nightmare of a loan process could have ended with a closing. OR, I would have known exactly why it was never going to close. I still dont know the answer to that. XXXX isnt the only offender. Right from the start, XXXX XXXX could have cared less. When I questioned the need for the updated statements, she screamed at me to send the statements or the loan goes no further. Instead of providing details on what exactly the underwriters required for final approval, she sent cryptic, scattered notes with vague requests and ultimatums. 

XXXX XXXX and XXXX XXXX and AAG are now left to do this to someone else - while Im left to figure out what to do next sell my shares prematurely, sell my house, or apply for another reverse mortgage with what will hopefully be a more transparent and professional lender. This should never happen to anyone else, ever again. 

The emails from XX/XX/XXXX to XX/XX/XXXX are attached, along with a copy of the XX/XX/XXXX letter supposedly sent from XXXX XXXX.