A mortgage executive and a reverse mortgage consulting company are the subjects of a lawsuit filed earlier this month by Reverse Mortgage Solutions (RMS) parent company Mortgage Assets Management, LLC (MAM).
The executive, Cheryl MacNally, formerly held prominent reverse mortgage roles with Wells Fargo and Generation Mortgage, and has recently served as president of MAM. MacNally is no longer employed by MAM, according to the company’s legal counsel.
In the civil suit, filed by MAM in the U.S. District Court of Massachusetts, the company alleges that MacNally inappropriately directed MAM to spend millions of dollars with reverse mortgage consultancy firm Harbor View Consulting, while maintaining an ownership stake in Harbor View that had allegedly not been made known to MAM at the time the services were provided.
MAM alleges in its complaint that MacNally continued to work for, profit from and maintain an ownership stake in Harbor View during this time, in breach of her contract with MAM.
MacNally and Harbor View have vowed to “vigorously defend” themselves against MAM’s allegations, according to a statement provided to RMD by an attorney representing MacNally and Harbor View Consulting.
In a statement provided by MAM’s legal representation, the company stated the events described in the suit are not representative of the company.
“Mortgage Assets Management (MAM) believes that the complaint speaks for itself,” the statement says. “The events described in the complaint are not representative of our organization, and MAM is focused on the future and its business of being a best-in-class asset manager and provider of mortgage-servicing oversight and supervision services.”
Prior to her roles at MAM and Harbor View, MacNally served 19 years at Wells Fargo in which she worked as the national sales manager for the bank’s reverse mortgage division. She was elected co-chair of the National Reverse Mortgage Lenders Association (NRMLA) in July of 2010 during her time at Wells Fargo alongside John Nixon, then of Bank of America and the executive currently listed on Harbor View’s website as that company’s president.
During a long and protracted bankruptcy proceeding by Ditech Holding Corporation last year, MAM was identified as a “stalking horse bidder” for reverse mortgage servicing company RMS before its sale to MAM was ultimately completed in late September, 2019.