Lead Provider Hit With Cease Directive from Mass. Division of Banks

The Massachusetts Division of Banks (DOB) issued a cease directive against Reverse Mortgage Directory, LLC, which operates ReverseMortgageAdviser.com, a lead provider for violations of general state law.

According to the DOB, the company used an online advertisement that contained the following language: “Stimulus for Seniors”, “Government Guaranteed”, and “Get Money Now”.  After a review of the advertisement, the DOB found the website included limited information about reverse mortgages and included inaccurate and or misleading information about the product.

“The statement that reverse mortgage loans were “Government Backed” and represented a “Stimulus for Seniors” giving the impression that a reverse mortgage loan is somehow available as part of a government sponsored stimulus plan,” said the DOB.

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In addition, the company’s webpage for Massachusetts lenders states that all of the lenders are “properly licensed in Massachusetts”, and describes the lenders as “qualified Massachusetts Reverse Mortgage Lender[s]”.  The Division’s records indicate that several Massachusetts reverse mortgage lenders listed on Reverse Mortgage Directory’s website are not licensed or approved to make or acquire reverse mortgage loans in the state.

Reverse Mortgage Directory was ordered to immediately cease soliciting or accepting, either directly or indirectly, any residential mortgage loan applications from consumers for residential property located in Massachusetts.  The company is also required to submit a detailed record of all contact and borrower property information obtained from Massachusetts consumers to the to the Commissioner.

RMD reached out to the company for comment and did not receive a response at press time.

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  • Too lazy to update or validate their list of approved lenders? What a silly mistake!!!

    What is the matter with discussing the government guaranteed portions of HECMs unless FHA is no longer a part of the federal government? Last I checked they were. Did something happen? (LOL)

  • I have worked with Reverse Mortgage Adviser for some time and, in my experience, they have been honest, straightforward and completely upfront. This action by the MA Division of Banks seems a little over the top to me.

    Additionally, if the lender list contains names of companies that are NOT approved to offer reverse mortgages in MA…. identify them!!! The DOB casts suspicion on everyone on this list by failure to indicate specifically who these guilty parties are.

  • Bob,

    When lenders purchase the services of any marketing company, it is the job of the lenders who use them to ensure that the marketer is in compliance not that of a government agency. Since lenders can be qualified one day and not qualified the next, why should it be up to a government agency to identify which lenders are in compliance or qualified to do business in the state THAT day and which are not? The lenders can always sue the marketing firm.

    If the marketer is doing the wrong things and the name of a lender is identified with the marketer, so be it. That is what happens when there is poor quality controls and lazy vendor practices. The lenders belong being painted with the same brush.

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