Division Of Banks Cites Four Reverse Mortgage Lenders
The state Division of Banks has issued cease and desist orders to four reverse mortgage lenders and brokers, including one based in Massachusetts.
According to the division, First Call Mortgage Co. Inc. of Andover, Sun West Mortgage Co. Inc. and Gold Reverse Inc., both based in California, were ordered to cease and desist after the division found the companies were making reverse mortgage loans to senior citizens without plans that had been approved or state-mandated counseling.
First Call was also cited for unfair and deceptive practices for altering mortgage documents and misrepresenting applicants' incomes.
The division also ordered American Advisors Group to cease and desist, charging the company with unfair and deceptive advertising practices involving reverse mortgages.
A reverse mortgage is a loan, typically to homeowners more than 62 years old, that coverts the equity in their home to income. State law requires financial counseling and plan approval for reverse mortgages to be finalized.
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