Consumer complaint received 2019-03-27
Product: Mortgage — Reverse mortgage
Issue: Closing on a mortgage — 
Company: Reverse Mortgage Solutions, Inc. (NJ)

On XX/XX/XXXX our legally XXXX mother was allowed to sign a reverse mortgage document without her POA present or acknowledgments. Prior to the closing extensive approval had to be completed to approve the POA because my mother was legally XXXX. Her apparent XXXX is evident in the documents signed and attached in the exhibits. 
The mortgage company required : ( EX1 ) 1. A personal letter from our mother to the mortgage and title companies stating she was XXXX and could not read or write and her daughter would be signing the documents as a POA. 
( EX2 ) 2. A letter from her doctor stating she was legally XXXX and could not read or write. 
( EX3 ) 3. A durable POA document completed so her daughter could sign as the POA for the  Reverse Mortgage of her XXXX mother. 
( EX8 ) 4. Numerous other documents title searches and other preparations to have a POA approved to read and sign for the Reverse Mortgage were completed. 

XX/XX/XXXX, just prior to scheduling a closing date, a ( EX4 ) Title Commitment Schedule B-1 revised was issued with Mom and the POA both on the document. 
The Title Commitment was given ready to close for a reverse mortgage along with other requirements, On XX/XX/XXXX. On that day we needed to have some things done as part of the commitment requirements and one of them was the ( EX5 ) transfer the deed from daughter and mother to just the mothers name. That was completed. ( EX6 ) Upon completion of the deed, we proceeded to the mortgage documents -- however, the documents did not have the POA so they would have to be redone. The closing was stopped by Mom and the POA. The POA was not allowed to sign those incorrectly prepared documents. The closing was supposed to be rescheduled so the correct documents could be made and signed with the borrower and POA present together.

We left that day of closing and somewhere in the interim of us leaving the closing table and the end of the evening the closing agent continued to have the documents signed b
y our XXXX and terminally ill mother. No reason was given other than it was acceptable. This all happened at my mothers home. 
The facts are this : ( EX9 ) Our XXXX mother was given a POA and approved to sign a reverse mortgage by mortgage and title.. 
( EX10 ) All title commitments and mortgage commitments were approved by the title and mortgage companies to move forward with the signing of the documents with our XXXX mother and her POA.. 
( EX7 ) A Cover Protection Letter CPL was issued with Mom and POA prior to closing. 

The closing was stopped all parties because the mortgage package documents were wrongly prepared by the mortgage. 
Despite this, a title clerk and mortgage company moved forward and allowed mortgage documents to be signed by a legally XXXX elderly woman. ( EX11 ) After the documents were signed the title and the mortgage eagerly covered up the process by leaving off all the required items on a checklist to make the commitment valid for signing. They took the POA off all the documents and issued a mortgage in only the XXXX elderly 's name taking away her rights of the POA on the mortgage and title insurance and providing no reasons, verifications, or justifications for those actions.

Other facts to consider : Our mom originally was given 2 options a line of credit or a full amount lump sum. It was originally asked, by mom, for {$20000.00} and to leave the rest in equity in an open line of credit.However, it was strongly encouraged by the mortgage company that she should take the full lump sum since the interest rates were lower. 
( EX14 ) HUD 1 The loan amount was for {$78000.00}. She received {$70000.00}, with {$7700.00} taken out as excessive fees. This is nearly 10 % of the loan in just costs and fees. We consider these costs fee-overreaching. 
( EX12 ) They appraised the home at {$110000.00}, yet the home value at that time was only {$50000.00} to {$60000.00}, and it still is only worth that today. In fact the Mortgage Company ( EX13 ) performed another appraisal on the premises by another independent appraiser in XX/XX/XXXX which valued the property at XXXX using an exterior value only. We think appraisal fraud could also be considered All of the equity was taken from the home on that day. 
Fraud and collusion between the title company and bank were possibly done if they pushed through a loan amount for the commissions and fees just to close the loan. 
We demand a full investigation by the NJ DOBI, Attorney Generals office, and CFPB of the actions of the bank and processes that enabled and allowed this loan to close with such heinous actions. This is not a case of misspelled names or who owns the note -- this is a serious matter of insurance mortgage and collusion to prey upon and commit fraud on an elderly, and XXXX woman.