OneWest Bank and Financial Freedom Have Foreclosed on 16,220 Reverse Mortgages since 2009

Just how many seniors and their families have been foreclosed on because of a reverse mortgage serviced by OneWest Bank?

New data (see fact sheet here) that CRC obtained from HUD, indicates that Financial Freedom/CIT Group’s share of reverse mortgage foreclosures (39%) since April 2009 is more than two times greater than the company’s estimated market share (17%).

Kevin Stein, associate director at the California Reinvestment Coalition, comments:

“CRC was contacted by a number of widowed homeowners and other heirs who shared disturbing stories about Financial Freedom. Using a FOIA request, we asked Financial Freedom’s primary regulator, HUD, about the total number of foreclosures it had completed, and the number of complaints HUD had received against Financial Freedom.”

Stein adds: “The data HUD provided is a red flag that something is amiss at Financial Freedom. While the company services an estimated 17% of the reverse mortgage market, data from HUD indicates that Financial Freedom was responsible for 39% of the 41,237 HECM reverse mortgage foreclosures that occurred since April 2009. This builds on the troubling consumer stories shared with us about Financial Freedom and CIT Group disclosing it had received subpoenas about Financial Freedom from HUD’s OIG.”

“This newly uncovered data about Financial Freedom’s outsized role in HECM foreclosures is troubling, and suggests the need for a thorough and transparent investigation,” comments Maeve Elise Brown, executive director at Housing and Economic Rights Advocates.

HUD declined to fully answer CRC’s FOIA request, which also asked for other information, including the number of complaints made against Financial Freedom, because HUD estimated it would take 120 years for the regulator to compile the information.

Stein comments: “It’s deeply concerning from a consumer protection standpoint when the main regulator for an industry tells you that because of their outdated technology, it will take them 120 years to compile complaint data about one of the companies they’re supposed be regulating. If HUD lacks the ability to systematically access, analyze, and respond to consumer complaint data, how can it effectively regulate this industry, and individual companies? This is important information for identifying problematic practices and bad actors. In comparison, anybody with an internet connection can use the CFPB’s complaint database, and the CFPB routinely publishes public reports about the complaints it receives.”

4 thoughts on “OneWest Bank and Financial Freedom Have Foreclosed on 16,220 Reverse Mortgages since 2009

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  4. I just spent 2 years battling Financial Freedom to save my home after my parents passed away because of their Reverse Mortgage. From the beginning (the day my father passed) NOTHING was EVER explained correctly on how to go about buying back the home. They would leave out very important information that was needed to continue the with purchase process. I managed to beat them on 3 auction sale dates and handed the situation all of myself. I was able to succeed. The kicker was that I my new mortgage was all set, Thursday Evening. The last forclosure Auction was set for that following Monday. By law, when you get the clear to close you must wait 3 business days before the closing date. Financial Freedom REFUSED to postpone the sale for 2 measly days!!!! I spent my Friday calling EVERYONE I could, HUD, my state rep, my state’s senate, the attorney general.. Everyone I could think of. Every single one of them said “If it was a regular Mortgage we could help you, but because it’s a reverse mortgage there is Nothing we can do to help” EVERYONE said that. There is NO help for reverse mortgages. YES the bank wants your home, don’t be fooled when people say they don’t that’s just BS.
    Feeling defeated on Friday afternoon I was ready to throw in the towel and after two years of hard work and insane stress of losing my lifelong home that my parents built. At 7pm I received an email stating that they would postpone the sale for 5 days, no more and it was the LAST time the would do it. All of my hard work payed off and we closed the next Wednesday. YOU CAN WIN!!! Do NOT Give Up!

    And if you’re considering a Reverse Mortgage DON’T DO IT!!!

    Like

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