Consumer complaint received 2023-12-06
Product: Mortgage — Reverse mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: Finance of America Holdings LLC (CA)

XXXX XXXX XXXX XXXX XXXX. 
XXXX XXXX, CA. XXXX XXXX XXXX Subject : Complaint Against Finance of America and Employees, Including XXXX XXXX Dear Sir/Madam, I am writing to file a formal complaint against Finance of America and its employees, particularly XXXX XXXX XXXX regarding their actions that have caused significant financial loss and potential harm to me. I believe that Finance of America has engaged in deceptive practices, including misrepresentation of loan terms, failure to provide required disclosures, and fraudulent behavior. I kindly request your intervention and assistance in resolving this matter. 
On XX/XX/XXXX, I entered into a loan agreement with Finance of America, facilitated by mortgage broker XXXX XXXX. From the very beginning, XXXX XXXX assured me that the loan would be a fixed-rate mortgage at approximately 5.375 %. However, before proceeding with the loan, I received a document from Finance of America, dated XX/XX/XXXX, which indicated that the audited interest rate on my finances was XXXX % ( Exhibit A ). 
Despite the lengthy duration of the loan process, during which XXXX XXXX continuously reassured me that the interest rate would remain fixed and would not exceed 5.375 % to 5.5 %, the loan was eventually closed without my knowledge, approval, or the provision of essential disclosures. Throughout the entire year, I encountered significant difficulties in dealing with Finance of America and its employees, including a lack of responsiveness and accountability. XXXX XXXX attributed these issues to staffing problems resulting from the COVID-19 pandemic. 
It is important to note that my wife and I proactively sought information about the loan, including the protections afforded to senior citizens, by participating in a special interview conducted by HUD and FHA called " Home Safe. '' We were determined to ensure that we fully understood the implications of a reverse mortgage and the safeguards in place to prevent misconduct, fraud, and exploitation of senior citizens. 
Initially, my agreement with XXXX XXXX was to replace my existing fixed-rate loan of 6.5 % with a fixed-rate loan of 5.5 %, saving me XXXX percentage point. I explicitly conveyed to XXXX XXXX that I would only accept a fixed-rate mortgage and would cancel the loan if any other type of loan was offered. 
Regrettably, I was not informed that the loan provided by Finance of America was adjustable and not fixed, contradicting our agreement and my explicit request. 
Consequently, all subsequent documents I signed were under the assumption that the loan was fixed at a rate of 5.5 %. This assumption was based on extensive discussions with XXXX XXXX over the course of a year. 
As per federal regulations, reverse mortgage lenders are prohibited from engaging in unfair or deceptive practices. Section XXXX of the Federal Trade Commission Act explicitly applies to reverse mortgages, making it illegal to mislead or deceive potential borrowers regarding loan terms. Additionally, Regulation Z of the Truth in Lending Act ( TILA ) mandates that lenders provide specific disclosures to individuals applying for reverse mortgages. These disclosures include a good faith estimate ( GFE ) and an itemized list of loan charges.

Despite my numerous attempts to obtain the initial disclosures that Finance of America claims to have, I have been unsuccessful in receiving any such documents. In fact, representatives from Finance of America, including their customer relations department and attorney, have repeatedly insisted that reverse mortgage loans do not require initial disclosures ( Exhibit B ). 
Throughout the entire process, from the onset of the reverse mortgage loan to its conclusion, I was kept in the dark, devoid of any initial disclosures, transparency, honesty, or truth in lending. I relied solely on the verbal information relayed to me by the mortgage broker, XXXX XXXX. 
Recently I was trying to refinance the loan and was told that in my contract with Finance America, there should have been a three-day recision period. I looked through the contract and it did not include that recision period. Not only was the recision period section not in the contract, I was not told that there was a recision period.

In light of the aforementioned violations and fraudulent actions committed by Finance of America, I implore you to intervene and put an end to their predatory behavior towards senior citizens like myself. It is crucial for Finance of America to understand that no entity is above the law, and compliance with federal regulations is mandatory. I kindly request that the Department of Financial Protection and Innovation thoroughly investigate this matter and take appropriate action to rectify the financial harm caused to me. I am willing to provide any additional documentation, evidence, or support necessary to support my complaint. 
Thank you for your attention to this matter. I look forward to a swift and fair resolution. Yours sincerely, XXXX XXXX