Massachusetts Mortgage Company Fined for Reverse Mortgage Practices

NewImage.jpgThe Massachusetts Division of Banks fined Mortgage Master Inc. $585,000 for using unlicensed mortgage brokers and other violations of state law.  The fine is one of the state’s largest penalties against a mortgage company in recent memory.

The Boston Herald is reporting the company has agreed to pay $495,000 in penalties for using unlicensed mortgage originators, another $60,000 for operating in unlicensed locations, and $5,000 for making reverse mortgage violations on residential property without first obtaining state approval.

According to settlement documents, Mortgage Master has agreed to not make or offer any reverse mortgage loans on residential property in Massachusetts unless the Corporation obtains prior approval of the reverse mortgage program from the Division.  Mortgage lenders in the state must recieve specific approval to solicit and make reverse mortgage loans in Massachusetts.

Advertisement

Mortgage Master has also agreed to refrain from submitting an application to obtain approval to make reverse mortgage loans in the state for twelve months from the effective date of the settlement agreement.

According to data from the US Department of Housing and Urban Development, the comany endorsed 39 HECMs during 2009.  Check out their listing on ReverseBase for more data.

Walpole mortgage company must pay $585G fine

Join the Conversation (2)

see all

This is a professional community. Please use discretion when posting a comment.

  • Some complain that NY AG Cuomo has been grandstanding in some of his decisions but this decision shows more than one state plans to take stronger action than even HUD has in the past. Unlike other bad news, these violations directly involve origination.

    This should serve as “a shot across the bow” for those brokers who are currently using originators (and others who are providing information about reverse mortgages — which requires a license — to prospects and borrowers) who are not properly licensed (including in some cases processors).

  • Some complain that NY AG Cuomo has been grandstanding in some of his decisions but this decision shows more than one state plans to take stronger action than even HUD has in the past. Unlike other bad news, these violations directly involve origination.rnrnThis should serve as u201ca shot across the bowu201d for those brokers who are currently using originators (and others who are providing information about reverse mortgages — which requires a license — to prospects and borrowers) who are not properly licensed (including in some cases processors).

string(112) "https://reversemortgagedaily.com/2010/07/05/massachusetts-mortgage-company-fined-for-reverse-mortgage-practices/"

Share your opinion