Reverse Mortgage Lenders Direct Complaints

wells-fargo-complaintsWe have a problem. My wife and I started a reverse mortgage with Wells Fargo and after almost 65 days, we still didn’t have approval. We called our agent and when he does take the call or calls us back – which is rare – he says everything is fine and we’ll be done soon. I called another company and they gave me a quote that was better than Wells Fargo Reverse Mortgage but they had to transfer some number from HUD before they could get our loan approved. I wrote a letter like they told me we had to do and my new company (not you guys) told me that they would handle it. For the next two weeks I kept getting calls from my new company telling me that they either could not get the HUD number transferred or something from the appraisal company. I called Wells Fargo’s Reverse Mortgage office and they sent me a bad copy of the appraisal on my house but my new company told me that they needed some more things from the appraiser or the company who manages him and they won’t give it to them. In the meantime, I’m finally getting daily calls from the agent I was using at Wells and he’s telling me that the other company can’t perform and I should go back to them. I don’t really want to go back, but I think I might have to just to get my loan closed. How do I know who’s telling me the truth? What do you suggest? – Paul

Hey Paul,

First a little history. When HUD implemented their Appraiser Independence Rule in 2010, it required all originators to order appraisals from Appraisal Management Companies. This was done to put a similar set of rules in place as the Home Valuation Code of Conduct (HVCC) rules that went into effect earlier for conventional loans sold to investors like Fannie Mae and Freddie Mac. Most companies like ours, use an Appraisal Management Company (AMC) that is approved by the lender where they intend to take the loan, but if they choose to go to another company at a later date, lenders will take the existing appraisal (original with color pictures) as long as it is accompanied by a Certification from the AMC that the rules for Appraiser Independence have been followed.

Enter Wells Fargo. Wells Fargo Reverse Mortgage owns some or all of RELS, the AMC they use solely for appraisals. If you do an internet search, the net is full of articles of lawsuits of people suing RELS and Wells Fargo for different issues and various information cites different percentage ownership of RELS by Wells Fargo, but it seems that a minimum of 49% ownership is not in question, although I cannot confirm this number. At any rate, if you apply for a loan at Wells Fargo, they will use RELS for your appraisal as they profit from the income they receive. The added benefit for Wells Fargo Reverse Mortgage is that they can do to borrowers exactly what you are describing, and we have documented cases of that happening with our borrowers as well.

Fraud in 3-D - National Mortgage News

2007-11-14 07:13:54 by Apprsr

By Ann Fulmer
Forget the rose-colored glasses. To see what’s coming in the next year, you’re going to need those 3-D glasses they used to hand out at sci-fi movies.
As we all know, the real estate bubble has burst. Thousands of families have lost their homes and millions more may be at risk. And as bad as it is right now, most surveys predict that the worst is yet to come. A disaster is unfolding before our eyes.
As David Ignatius said in a recent Washington Post article, “Bubbles must be lived forward, even if they can be understood only in reverse

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  • Avatar Tony Can a house be to old for a Reverse mortgage?
    Oct 09, 2012 by Tony | Posted in Renting & Real Estate

    My grandmother is wanting to get a reverse mortgage and was told that her home was to old when she applied to I believe AAG. The House is located in tolland county Connecticut and was built 1850. So my questions are , is the house to old for a reverse mortgage? or does it vary lender to lender? and if it varies lender to lender what lender could you recommend?

    • I have never heard of a home being rejected simply because of age. However, it may have been rejected either because of property type (see below) or because it was not up to FHA building standards (and the cost to bring it up to standard is excessive - there is a calculation), or valued less than $40, (exceptions can be made). I did a reverse mortgage for a home that was built in 1895; not as old as your grandma s, but over a century old. Currently only FHA offers reverse mortgages. All the private lenders (who didn t have to follow the FHA restrictions) withdrew from the industry when the economy …