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.
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.