Reverse Mortgage Class Action Lawsuits
Reverse Mortgages are becoming popular and in most cases a safe way for older Americans to gain greater financial security without having to cash in most of there hard earned investments. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements, and more. However, as with any financial transaction, fees and other expense also come with this new financial instrument and whenever money is involved illegal or shady practice are sure to be found. Over the past several years there have been a number of reverse mortgage class action lawsuits seeking relief for these senior citizens.
Many of the complaints filed in these lawsuits alleged that lenders took advantage of the senior citizen’s need for cash income by selling then a “reverse mortgage”. Under the schemes attempted, seniors borrowed against the equity in their homes, as is allowed by law, however they were charges excessive fees and processing charges which were unrelated to the actual loan that was being provided. These fees were capitalized as part of the loan and thus subjected to compounded interest rates over the life of the loan. Utilizing these schemes, corporations were able to earn extremely large profits while providing very little in the long term for the senior citizens.
Another scheme which was utilized consisted of a required "life annuity" designed to replace the monthly loan advances after a number of years, in effect having the borrower fund the future monthly advances. The annuity is payable only to the borrower -- there is no death benefit -- and therefore, the if the borrower does not live long enough to see the maturity of the annuity, he or she receives absolutely no value, even though the loaner charges compounded interest on the costs of the annuity from the beginning to the end of the loan.
These reverse mortgage class action lawsuits purposes were to protect the elderly from an overly aggressive creditor. Many states have enacted legislation specifically addressing this kind of elderly abuse, recognizing that senior citizens are vulnerable to the predation of profit seeking financiers. The elderly, ought to be able to trust and rely upon their banks to treat them fairly. Lawsuits of these kind seek to protect a class of senior citizens who are often trusting and do not have the means to do it themselves. These suits have also brought the profits that are being made from reverse mortgage more in line with other financial products.
Group Charged for Committing Reverse Mortgage Fraud - Reverse Mortgage Daily
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Lincoln Appraisal & Settlement Services Expands Wholesale Mortgage Clientele by Adding Genworth Financial (PR Newswire via Yahoo! Finance) Genworth Financial, a publicly traded global financial security company with more than $100 billion in assets and a presence in more than 25 countries, has recently joined Lincoln Appraisal & Settlement Services as their newest client. Lincoln Appraisal & Settlement Services will be working with the Genworth Home Equity Access Division which offers highly competitive Reverse Mortgage Loans... | ||
William Mills Agency CEO Speaks at National Reverse Mortgage Lenders . - MarketWatch (press release)
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More people skipping mortgage to pay credit cards (Market Watch) U.S. consumers are starting to look like a frugal, debt-fearing lot as they pay down billions of dollars in credit-card obligations. But an alarming trend is emerging: A small but growing number of people are skipping mortgage payments in favor of paying their credit-card bills... | ||
Group Charged for Committing Reverse Mortgage Fraud According to the indictment, Kimpson, Harris, and Hull allegedly faked the required down payments by senior citizens to establish the equity needed in the home to qualify for the FHA-insured reverse mortgage. The EURgiftEUR letters ranged ... | ||
William Mills Agency CEO Speaks at National Reverse Mortgage Lenders Association Road Show 2010 (Business Wire via Yahoo! Finance) ATLANTA----William Mills III, chief executive officer of William Mills Agency, the nations largest independent financial PR and technology public relations firm, spoke February 25 at the National Reverse Mortgage Lenders Association Roadshow about the importance of public relations as part of reverse mortgage lenders marketing and advertising plans... | ||
Reverse Mortgage Default Costs Rise - Reverse Mortgage Daily
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For some, a reverse mortgage can help make ends meet - McDowell News
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William Mills Agency CEO Speaks at National Reverse Mortgage . ATLANTA--(BUSINESS WIRE)-- William Mills III, chief executive officer of William Mills Agency, the nation's largest independent financial PR and technology public relations firm, s... | ||
Bernanke sees low rates amid signs of weak rebound - The Associated Press
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Where can I find a Reverse Mortgage lender in Texas? | Hawaii Mortgage I have a home in San Antonio, TX on which I have quiet a bit of equity. I would like to get a HECM Reverse Mortgage and need a lender that specializes in... | ||
Reverse Mortgage Default Costs Rise Marc Helm, chief operating officer of Reverse Mortgage Solution told Broker Universe... | ||
This mortgage works in reverse - The Free Lance-Star
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Landmark Assurance Program to Lower Upfront Appraisal Costs - Reverse Mortgage Daily
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masschusetts reverse mortgage interest rates | Reverse Mortgage . describes the differences between the fixed and ajdustable rate reverse mortgage programs available in Massachusetts... | ||
Reverse Mortgage EUR What is a Reverse Mortgage & How Can I Use . Across the country, more and more senior citizens are facing the conflict of living on a fixed income while having to pay rising costs for... | ||
Feds Sack backs passive strategy for asset sales (Market Watch) Any potential asset sales from the central banks enormous holdings of mortgage-backed securities will come in a gradual and passive manner, the No. 2 official at the New York Fed says... | ||
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