Consumer complaint received 2017-11-21
Product: Mortgage — Reverse mortgage
Issue: Trouble during payment process — 
Company: Reverse Mortgage Solutions, Inc. (WA)

On XX/XX/XXXX, my mother, XXXX XXXX at her residence at the age of XXXX. 
After being swindled into refinancing her residence in XX/XX/XXXX, worth a considerable amount. The XXXX XXXX XXXX XXXX under loan number XXXX only had a principle payoff of $ XXXX.After the  accomplishment of the grand rip off the balance grew to {$51000.00} with a principle amount of {$250000.00} under loan XXXX. Although after taking a large distribution from the loan in XX/XX/XXXX almost exactly a year later returned the funds and complained to the company concerning the loan and how she was misguided. Something else to consider is that there was never anybody that ever entered the property for a true assessment of value prior to the refinance of the property. My mother could have been considered a hoarder. Where a single elderly woman was living in over a XXXX square foot house by herself. Rooms were pretty much stuffed to making them nothing more than storage. Which masked damage or areas in need of repairs. That was an issue long before any refinancing transactions took place. Which leads me to question the ethics in the companies involved? How was a determination of value really accomplished when she would not let anybody into the residence due to the condition and amount of collected stuff? How a refinance could have been allowed in which the sole owner was having difficulty in maintaining such a large property in the first place. 

Prior to her XXXX, XX/XX/XXXX she was admitted into the hospital and in the process of medical procedures suffered a XXXX that left her XXXX. My brother XXXX lived close to her and took over her medical care as a resident of XXXX CA. After her XXXX, I contacted Reverse Mortgage Solutions to inform of her XXXX with the use of my daughters cell phone. I could not reach anybody that would discuss available options or what was needed. When the bombardment of certified and registered mail began coming to her address I was alarmed and continued attempts to call. From the time my mother XXXX, I was the Trustee and continued to be the Trustee as each set of legal documents was discovered. Never did I get anybody that would talk to me or return phone messages concerning the loan. There was a huge disconnect in who was supposed to be the legal representative and numerous variations of legal documents. If anybody in the company would have discussed the loan, and a reliable customer service representative, the correct and current documents could have been provided and updated as located. However, a respectable company would have been willing to assist to make a timely resolution. XX/XX/XXXX I was finally able to get a hold of someone that would speak to me concerning the issues. Even with the use of an attorney, hired to represent the Trust, the company continued to stall at providing information, or make any kind of arrangements to preclude foreclosure or the loss of the property. Although Reverse Mortgage Solutions was well aware of the intentions of sale of the property they continued to send notifications / updates for foreclosure all the while billing needlessly. In addition of dealing with the death of my mother, a ton of documented fraud, this company continued to send contractors and bill the Trust. To make matters even worse they claimed that the property was vacant, when questioned provided picture that included my Blue XXXX XXXX XXXX XXXX 4 wheel drive pickup truck with the XXXX XXXX on the XXXX rear window. In which nobody did anything. The company claimed that they used security to secure the house and showed pictures of a Lock Box that was illegally installed and I still have in my possession. If the property was so secure by the subcontractors that did all the work why do I have Police Reports on the periods of time they claim the house vacant? 

Although Escrow account was established and sale listing were completed and posted XX/XX/XXXX, and Reverse Mortgage Solutions was notified, Reverse Mortgage Solutions continued the foreclosure process knowing they were protected with FHA Insurance. Postings of the coming foreclosure and bill for those service. After contacting Reverse Mortgage Solutions for Payoff Disclosures the deceptive practice of not disclosing what they had billed. When questioned, about the charges the company continued to stall in attempts to continue charging for services that never occurred. In addition the company deliberately stalled in providing payoff requirements and timely negotiations on false charges in order to continue with a foreclosure sale. That had been set for XX/XX/XXXX, when both the Reverse Mortgage Solutions and the Trustee, Law Office of XXXX XXXX, placed in charge of the foreclosure actions by Reverse Mortgage Solutions, as early as late XX/XX/XXXX in which the intensions to satisfy the loan were well conveyed. If it was not for the intension of corporate profit of a residence that had less than XXXX in principle due and had been appraised XX/XX/XXXX with a drive by guesstimate hired by XXXX, valued at {$550000.00}. 

A complaint was filed with the California Business Oversight under number XXXX that had no resolution as to recovery of false charges. I have contacted the company on numerous occasions to correct the tax forms to the correct Trust EIN and since the delay by their fault the shortage of insurance premium that occurred. I have yet received a call back. Basically companies like these steel peoples houses especially the elderly and have been doing it for years. It should not be allowed! Based on the information that was submitted to the California Business Oversight, and provided to me has opened other issues in which the closing statement does not match the records of the company that were previously provided. Other charges such as the infrequent LOC Inspections that were billed are in the company records as principle distributions. In which they were not they were Corporate Advances. Other items were either double billed or charged twice that increased the balance and the deduction of the Hazard Insurance that was purchased through the company. However accumulated Interest is not correctly accounted for in which the interest applied on principle can not be distinguished from interest on Corporate Advances or what that interest rate is. Evident in the amount of Interest Paid From Loan origination in XX/XX/XXXX through closing and reported to the Internal Revenue Service in the amount of {$8400.00}. A review of the borrowers XX/XX/XXXX XXXX confirms that Reverse Mortgage Solutions did accurately report Interest Paid. However the amount of FHA Insurance Paid does not match the XXXX or the amount indicated in Reverse Mortgage Solutions transaction history report. In addition as I am to understand FHA Insurance it protects the lender, and by law when 22 percent of the equity is obtained they are required to cancel the insurance. By XX/XX/XXXX the insurance was never cancelled and the company already was well aware that the borrower new she had been scammed, did not want the loan and did not want to lose her house. Since FHA Insurance protects the lender from Default and policy was never cancelled as required by law, Why was the foreclosure actions taken in the first place? All of Reverse Mortgage Solutions transaction history has been placed in a spread sheet for your review. Comparisons reported on XXXX XXXX Certified Closing Documents and transaction history are not matching indicating errors. In addition the XXXX reported to the Internal Revenue Service does not match in interest actually paid and the fees collected for FHA Insurance Premiums do not match after loan origination. 

Some of the documents for your review. I have tons of documents to support the claims. In addition to the complaint being sent to you for action, I have filed a complaint through XXXX XXXX HECM for further Housing and Urban Development ( HUD ) for further action against Reverse Mortgage Solutions. Seems that this will be in addition to the penalties your office has imposed on this company under XXXX. The same tactics were used just not in advertising or marketing! Your department could better serve society as a whole by taking their license away!