Comments on: HUD Reaches Tentative Settlement with Reverse Mortgage Lender Over Violations

By: Sam Chrome

Sam Chrome — Tue, 10 Nov 2009 03:57:00 +0000

This story is the very reason lenders have legal departments….to comply with various state regulations. That being said, it is quite possible for a lender to misinterpret a state regulation.rnrnKeep in mind there are states that have additional licensing requirements that are product specific. And if memory serves me correctly, MASS is one of them for reverse mortgages.rnrnLarge companies also have specific compliance personnel for HUD regulations. If the attorney handling the cease and desist did not forward to the internal HUD compliance officer in a timely manner, this could very well happen.rnrnThe size of the fine could be relevant to information to which we are not privvy.

By: Sam Chrome

Sam Chrome — Tue, 10 Nov 2009 01:57:32 +0000

This story is the very reason lenders have legal departments....to comply with various state regulations. That being said, it is quite possible for a lender to misinterpret a state regulation.

Keep in mind there are states that have additional licensing requirements that are product specific. And if memory serves me correctly, MASS is one of them for reverse mortgages.

Large companies also have specific compliance personnel for HUD regulations. If the attorney handling the cease and desist did not forward to the internal HUD compliance officer in a timely manner, this could very well happen.

The size of the fine could be relevant to information to which we are not privvy.

By: jamesanelson

jamesanelson — Sun, 08 Nov 2009 23:04:47 +0000

I'm beginning to think several somebodies have a political (economic) agenda
here. Could it be some in California have a competive ax to grind. Why was South West Mortgage Company highlited in the RND story: Why wasn't the same emphasis given to the Companies in Wisconsin and Connecticut? I thought this was a National Industry blog. The problem really is a hodgepodge of State Licensing programs which affect the mortgage industry. It's interesting to me that Loan Originators, when it comes to Banks , don't have to be individually licensed for each State where required of loan originators working for mortgage brokers. I suspect the Banks have to licensed for me to work in all 50 States without having to be worried about the State requirments or the new licensing enity; that is a real revelation. Just goes to show Bankers operate under different rules and have more economic clout than mortgage brokers.

By: wealthone

wealthone — Sun, 08 Nov 2009 12:44:10 +0000

rules is rules and I have to live by them or I'm looking for new employment in another industry, its that simple

By: Bob Green

Bob Green — Sat, 07 Nov 2009 00:23:00 +0000

Lets get back to the issue here folks…

“HUD alleges that the reverse mortgage lender originated ten HECM loans in Massachusetts before receiving the necessary license and approval to originate HECM loans in that state and failed to notify HUD that Massachusetts had issued a Cease and Desist order prohibiting it from the unlicensed origination of loans in that jurisdiction. ”

Seems to me they KNOWINGLY originated 10 loans in a State where they were not licensed and where they KNOWLINLY had a Cease and Desist order.

By: The_Critic

The_Critic — Fri, 06 Nov 2009 23:38:40 +0000

Mr. Green,

One must be careful. There is a clear distinction between the maverick actions of other employees and the executed decisions of executive management. Neither can be tolerated; however, as to the severity of penalties, executive management decisions should be hammered. In neither case should Sun West be enriched by its actions.

By: The_Critic

The_Critic — Fri, 06 Nov 2009 23:20:24 +0000

Mr. Nelson,

“ten Seniors were allowed to remain in their homes through the work of Sun West….”

Just remember this as the day you refused to back what you said.

By: Reversinator

Reversinator — Fri, 06 Nov 2009 22:39:38 +0000

Mr. Nelson,

I'm still struggling with your idea that Sun West did something for these borrowers. Based on what I've read, it sounds like you, and many borrowers, have benefited from the HECM program, and Sun West has benefited by offering premiums to brokers that sent them senior citizen's collateral, only to re-capture those premiums and further profit absorbinant amounts of money by selling that collateral on the secondary market. There is no customer experience between the borrower and Sun West. They're in business to make a profit. The fact of the matter is that this industry does not have room for the irresponsible lending practices referenced in the above article.

- Reversinator