According to the news, the Department of Housing and Urban Development is cracking down on Financial Mortgage USA in Honolulu.
The reasons are as follows:
HUD said its Mortgage Review Board alleges that Financial Mortgage USA failed to:
— Implement Federal Housing Authority-required quality control plans.
— Separate its lending operations from those of its affiliated insurance company.
— Conform to prudent lending practices.
— Properly provide borrowers with housing counseling services.
With all the noise about reverse mortgages and with so much of it negative, I think its really important to pay attention to who you’re getting your loan from and be sure to shop around. A reverse mortgage in of itself might be a great thing depending on your situation. However, anybody selling loans stands to make a lot of money . Whenever that happens, they can mislead you without breaking the rules in many ways. Just be careful and if you have questions bring some family members into the picture. I was on phone calls with my parents and the lenders during the process to make sure I caught any BS or misleading statements. I also had the opportunity to ask my questions.
Fortunately, in the wake of all the horrible lending practices in the last decade people are more wary (hopefully) and it looks like the FHA has their eye on the ball as well.