Jail Time in Reverse Mortgage Fraud
Florida Woman Sentenced for Role in Reverse Mortgage Fraud Scheme A Miami title agent and former mortgage broker was sentenced today for her role in a reverse mortgage loan fraud scheme. Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, and Special Agent in Charge Lester Fernandez of the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG) made the announcement after sentencing by Senior Judge Richard W. Goldberg, sitting by designation in the Southern District of Florida. Yesenia Pouparina, aka “Yesenia Campos,” 42, was sentenced today to 46 months in prison, followed…
Financial Freedom Settles for $89 Million
Financial Freedom Settles Alleged Liability for Servicing of Federally Insured Reverse Mortgage Loans for $89 Million Financial Freedom has agreed to a settlement with the United States of more than $89 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or ‘reverse mortgage’ program, the Justice Department announced today. Financial Freedom is headquartered in Austin, Texas. “The Department of Justice is committed to ensuring that those who participate in federal mortgage insurance programs comply with requirements essential to the success of…
Home Equity Is Illiquid
Home equity is an illiquid asset that can typically only be extracted through home sale or mortgaging the property. However, reverse mortgages provide a mechanism for senior households to withdraw equity from their home without home sale or monthly mortgage payments. The most prevalent form of reverse mortgage, comprising more than 95 percent of the market since the mid-2000s, is the U.S. Department of Housing and Urban Development’s (HUD) federally insured Home Equity Conversion Mortgage (HECM). The objective of the HECM program is to provide seniors with a vehicle to “supplement social security, meet unexpected medical expenses and make home improvements” (U.S. Department of Housing and Urban Development 2006). The…
Why Are There Reverse Mortgages?
The U.S. senior citizen population is growing. Between 1990 and 2000, the number of individuals at least 65 years of age increased from 31.2 million to nearly 35 million. Many more are reaching the minimum social security retirement age; by 2010, more than 50 million people in this country will be at least 62 years old.1 Life expectancies are lengthening, creating the need for retirement income to last longer than in previous generations. However, according to the U.S. Government Accountability Office, “Efforts to increase personal savings outside pension arrangements seem to have had only marginal success.”2 As a result, older people who need additional funds to cover general living expenses…
Can’t Pay Property Taxes or Insurance?
What should I do if I have a reverse mortgage and I can’t pay my property taxes or insurance? If you stop paying taxes and insurance, your reverse mortgage lender could file a foreclosure to take your home. It’s important to keep current with these payments if you can afford to do so. Learn more about what to do if you’re already behind on your tax or insurance payments. If you are struggling to afford your taxes and insurance, there might be local programs or other options that can help you keep your home. A reverse mortgage foreclosure prevention counselor can help you make the best choice for your situation.…
Delinquent in Property Taxes and Insurance
What should I do if I have a reverse mortgage and I received a notice that I am “delinquent,” “in default,” or behind on my property taxes and insurance? Act quickly. If you delay, or ignore the notice, you could eventually be forced to leave your home. Keeping current on your property taxes and homeowners insurance is a condition of your reverse mortgage. If you get behind, you are considered “in default” on your reverse mortgage. Default means that you are not meeting the requirements you agreed to when you took out the loan. Unless you take steps to “cure,” or fix your default, your loan could get foreclosed on…
VA Reverse Mortgage?
I saw an ad for a no-payment reverse mortgage from the Department of Veterans Affairs (VA). Is this legitimate? Answer: No. The VA does not offer no-payment reverse mortgages. Some mortgage lenders run misleading ads directed at veterans that promise special deals, imply VA approval, or offer a “no-payment” reverse mortgage to attract older Americans desperate to stay in their homes. You should look out for and avoid loans that advertise: Official-looking logos implying that the loan comes from a government agency like the VA or the Department of Housing and Urban Development (HUD). Government agencies guarantee some loans, but they do not lend directly. Promises of amazingly low rates. Offers…
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Reverse Mortgage Interest Rates & Fees Springfield OR
Searching For Awesome Rates and Fees For Reverse Mortgages In Springfield Oregon? Allow Me To Share The Things You Need To Learn Concerning Rates and Fees For Reverse Loans Reverse Mortgage Interest Rates in Springfield OR Not only can reverse mortgage interest rates in Springfield differ from lender to lender. Rates will often vary according to loan product you choose to use. Here is a basic guide on shopping for the very best interest rate on a reverse mortgage in Springfield. 1. Fixed Rate Reverse Mortgage Springfield – This normally will have the highest interest rate of the many options you have available. Having said that, it also comes with…
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HECM in Springfield OR – Home Equity Conversion Mortgage
What You Need To Be Aware Of Regarding Obtaining A HECM in Springfield Including, Options, Costs, Requirements and Receiving The Best Deal The HECM program makes it possible for elderly homeowners in Springfield Oregon to withdraw a portion of the equity of their home in the form of monthly payments for life or a fixed term, or in a lump sum, or through a credit line. This reverse mortgage loan program allows families to stay in their home while using some of its equity. The total income that an owner can receive from the program is the maximum claim amount, which is calculated with a formula including the age of…
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Reverse Mortgages for Manufactured Homes in Springfield Oregon
Can You Be Given A Reverse Mortgage with a Manufactured Home in Springfield OR? The quick response is yes. But you need to be aware of the additional costs, inspections and fees associated with getting a manufactured home reverse mortgage in Springfield. Reverse Mortgage FHA Guidelines For Manufactured Homes In Springfield Oregon 1. The home in Springfield must have been built on or after June 15th of 1976. Homes constructed prior to June 15, 1976, regardless of improvements, fail to meet the HUD specifications and cannot be accepted as certified with the HUD Code. FHA is not going to insure mortgages on manufactured homes made prior to June 15, 1976.…