Liberty Home Equity Solutions, Inc.

During the origination process of this loan in our direct endorsment underwriters and appraisal review team found discrepancies with the initial appraisal and the comparable sales used to value the subject property at $77,000. After review and a separate "drive by" appraisal (which was
not charged to the borrower) a value of $38,was determined to be more accepatble. As a direct endorsement lender approved by the FHA it is our responsibility to approve lending values that are most appropriate for the subject property. Although the appraiser used for this transaction was an independent FHA approved appraiser the lender still has authority to determine a lower property value if there are reasonable discrepancies. The lowering of the value was addressed with the borrower prior to the closing of the loan and the borrower was also given a day rescission period after reviewing and executing all of the closing documents. We have reached out to the borrower and will be following up with any requests he may have

I am rejecting this response because: The entire process of obtaining a Reverse Mortgage has been one complete nightmare This company through it's representative *** ***, never fully disclosed everything necessary for qualification for the mortgage I initiated the process in April of It has taken a year, and everything is still not done The appraisal had to be recertified at an extra cost because time expired on getting some things done Disclosure of everything required should be made on the front end, not several months later I will state again, lIBERTY hOME eQUITY sOLUTIONS, iNC HAS THE WORST CUSTOMER SERVICE OF ANY COMPANY I HAVE EVER DEALT WITH Their excuse of my having a rural home was never discussed with me I was told that after I requested a final inspection, it would take 3-business days for the inspector to call I was not contacted by an inspector or Liberty to inform me of the delay I had to call twice to find out why I had not heard anything They could not give me a definite answer as to when the inspection would be made There is a deadline of May to get the work done and inspected or the loan will be called I was finally contacted on April and told the inspector had tried to contact me but could not get in touch On April 25, the inspector called and scheduled the visit for April So, from the time I requested the inspection until the time the inspection was completed, was business days I would not recommend this company to anyone who is applying for any type of mortgage

I filed a complaint yesterday, and everything I said in it was true, but about 3 hours later, my money finally came in, so I am now modifying my complaint in that particular part of the complaint. Everything else remains true.I don't require a settlement now because, although I did not like the way...

they did it or the time it took, they did finally send me the money.

Liberty Home Equity Solutions, Inc. ("Liberty") has confirmed with the borrower that an inspector has been assigned and the inspector did reach out to the borrower.  Liberty has apologized for the borrower receiving anything other than exemplary customer service as that is what Liberty strives...

to provide to every customer.  Also, it was relayed to the borrower that the only reason for the delay in scheduling an inspector was due to the rural location of the subject property and the lack of FHA approved appraisers in the area.  Once Liberty received acceptance of the inspection from an FHA approved appraiser the borrower was contacted immediately.

I am not a customer and never will be after today's encounters with Liberty. In doing research on the internet I stumbled accross this company and within seconds of leaving the website received an unsolicited phone call from [redacted] at this company. Yes within seconds. I asked not to be called again and within the next two minutes recieved two more calls from this woman adressing me by [redacted] rather than [redacted]. I instructed her two more times NEVER to contact me again. What a screwed up company. I would suggest avoiding them like the plague.

We're in the 13th month of our reverse mortgage with LHES. From the first meeting with their local representative, to the closing, everything was handled in a professional, caring manner. All of the facts were presented beforehand, the upfront charges were in line, if not better, than any of the other companies that we contacted. Believe me, we did our research. Imagine our surprise that when our rep came to our house for the closing, with the notary public, he informed us that our amount had increased by more than $2000, with no increase in fees. When I want to withdraw money, I just send them an e-mail, and the money shows up in our checking account with 3-4 days. It was a pleasant experience, and a lifesaver for us.

I highly recommend Liberty Home Equity, and their local rep, whose name I won't mention, because you'll edit it out..

Review: I initiated a reverse mortgage months ago with Liberty Home Equity Solutions. In speaking with their representative, [redacted], the process was supposed to be a piece of cake. However, this process turned into a nightmare. I was not informed on the front end that the appraisal would be used to qualify or disqualify me for a reverse mortgage. After the appraisal was received by the company, I was informed that there were several repairs/work to be completed before the loan could be completed. I received labor estimates for the work required. I was told that funds were being set aside to pay for this work. However, after the work was done, there were other hoops to jump through before the contractor could be paid. I was not informed up front that all work would have to be completed in order to get the funds released. Funds had been set aside, but I could not get them until all the work was completed. This meant I would have to pay for the repairs and maybe I would get reimbursed. All work has now been completed. Two weeks ago I asked for an inspection and was told the inspector would contact me within 3-5 business days. After the 5 days had passed and I had heard from no one, I called to inquire on April 15.. I was told the inspection had been placed on hold until an inspector accepted the job. I called again today, April 21, and was told they could not get an inspector to accept the job, therefor funds could not be released. They could not give me any timetable for when this might be resolved. In the meantime, the contractor has indicated he may have to take legal action to get paid. I would never recommend this company to anyone considering any type of mortgage. Liberty Home Equity Solutions has the worst customer service I have ever dealt with. At no time, even after I called them, did they ever contact me to advise me of anything. Worst company I have ever dealt with.Desired Settlement: I would like this company to immediately provide an inspector to verify the work has been done and release the funds to pay for the work done.

Business

Response:

Liberty Home Equity Solutions, Inc. ("Liberty") has confirmed with the borrower that an inspector has been assigned and the inspector did reach out to the borrower. Liberty has apologized for the borrower receiving anything other than exemplary customer service as that is what Liberty strives to provide to every customer. Also, it was relayed to the borrower that the only reason for the delay in scheduling an inspector was due to the rural location of the subject property and the lack of FHA approved appraisers in the area. Once Liberty received acceptance of the inspection from an FHA approved appraiser the borrower was contacted immediately.

Consumer

Response:

I am rejecting this response because: The entire process of obtaining a Reverse Mortgage has been one complete nightmare. This company through it's representative [redacted], never fully disclosed everything necessary for qualification for the mortgage. I initiated the process in April of 2014. It has taken a year, and everything is still not done. The appraisal had to be recertified at an extra cost because time expired on getting some things done. Disclosure of everything required should be made on the front end, not several months later. I will state again, lIBERTY hOME eQUITY sOLUTIONS, iNC HAS THE WORST CUSTOMER SERVICE OF ANY COMPANY I HAVE EVER DEALT WITH. Their excuse of my having a rural home was never discussed with me. I was told that after I requested a final inspection, it would take 3-5 business days for the inspector to call. I was not contacted by an inspector or Liberty to inform me of the delay. I had to call twice to find out why I had not heard anything. They could not give me a definite answer as to when the inspection would be made. There is a deadline of May 10 to get the work done and inspected or the loan will be called. I was finally contacted on April 22 and told the inspector had tried to contact me but could not get in touch. On April 25, the inspector called and scheduled the visit for April 27. So, from the time I requested the inspection until the time the inspection was completed, was 17 business days. I would not recommend this company to anyone who is applying for any type of mortgage.

Review: I am very disappointed. The interest rates are touted as very low, which they are, but the total costs, including fees, amounted in my case to effectively changing the rate to borrow money from a little over 2% to over 13%, and the fees were downplayed until the last minute in each case, so I was encouraged to go ahead with the deal since I had already spent more than I could afford to unless I got the loan. The appraiser that they sent out came back with an appraisal that was ridiculously and suspiciously low, under 77% lower than both an appraisal I had only weeks before and the tax assessor's appraisal I received only days after their appraisal was done. Then the time that the whole process would take was said to be less than half of what it actually turned out to be. But the straw that broke this camel's back is this: After the entire mess was completed on Friday, and I was told that my money would be deposited directly in my account by the following Wednesday, it was not. Now it is the following Friday, and although I have e-mailed repeatedly and made numerous telephone calls asking for an explanation, all I am told is that the money was disbursed. When I asked for a 15 digit transit number, per the request of customer service at my bank so they could investigate the matter further, I was told that I would get a call back within 30 minutes with the number. It has now been over 24 hours, and I can not get a response to either e-mail or telephone calls. I am not only disappointed. I am disgusted and angry.Desired Settlement: It is too late for them to rectify any of my complaints except the last one. That is, they need to do what they committed to do, and although they have already missed the date and time, they could at least do it as soon as possible, and in the meantime, they could do me the courtesy of responding to either my e-mail or my phone calls with an explanation or at least with the information which I requested and which, unless this is some sort of fraud, they should be able to provide in 30 seconds.

Consumer

Response:

I filed a complaint yesterday, and everything I said in it was true, but about 3 hours later, my money finally came in, so I am now modifying my complaint in that particular part of the complaint. Everything else remains true.I don't require a settlement now because, although I did not like the way they did it or the time it took, they did finally send me the money.

Anyone interested in reverse mortgage with this company is crazy. All goes well until 3-4 months after they start giving you money. They then tell you how they want you to live and to do all sorts of work on your home. Things that don't need any work. And then they use your money to fix it if you hire them for some reason. You call the office of repairs where the letter came from and they talk to you like your trash. If you dont live the way they want you to then you go into default and you have no more monies. They say they don't want your home when in fact they DO! Its all False advertisement! Don't use this company!

Review: I was misinformed regarding the requirements for the reverse mortgage. When I originally spoke with the [redacted], I explained fully my financial position and why I was seeking knowledge on this type of loan. I was informed that to qualify for this loan I needed to have 50% to put down on a new purchase and the required mortgage insurance fees and closing costs. I would be responsible for the insurance, taxes, HOA fees and maintenance of the property. It was required that I be at least 62 years old. As no loan payments were required there were no further qualifications. I requested an application and Liberty Home Equity Solutions sent a notary with documents to meet with me. She explained all the documents as they were signed and the application was submitted. Upon request of a new purchase home I requested a prequalification letter and it was provided in the amount of $121,000. I was required to complete a counseling session at my own expense of $125.00, which took approximately 15 mins on the phone and the process of the loan was started. After the inspections were completed $280.00 and after the appraisal was completed $450.00, then I was informed that I would need to meet Debt to income ratios and that the qualifications for this loan was the same as any other loan. So as a result I incurred expenses of $855.00, only to realize that I was not going to qualify for this loan. As I said I was given a prequalification letter when there was no possible way I would qualify for this loan.I also lost my earnest deposit, $1000.00, as a result of this. THIS IS AN APPLICATION PROCESS THAT SUPPORTS EVERYONE EXCEPT THE BORROWER, THUS TAKING ADVANTAGE OF THE ELDERLY.Desired Settlement: I want to be reimbursed for all of my expenses.

Business

Response:

Dear Ms [redacted]: I am writing to you in response toa recent complaint submitted to the Revdex.com regarding your loan application with LibertyHome Equity Solutions, Inc. (“Liberty”). In your complaint you state that you were not aware of the incomerequirements for the Home Equity Conversion Mortgage (“HECM”) for purchase thatyou were applying for and then withdrew your application. The income requirements are in place to showwhether or not a potential borrower will be able to maintain the prospectiveproperty along with any retained properties. Due to the sale of your current residence not taking place this income requirement would have come into effectfor this HECM for purchase transaction. This was listed as one of the conditions to be satisfied on theprequalification letter you mentioned in your complaint. Item number five of conditions to be fullysatisfied on the prequalification letter states: ”You must provide us with evidence of sufficient income to maintain the costsassociated with the new home including the mortgage payment, taxes and insuranceof any retained properties” Additionally, you state that youpaid out of pocket for an appraisal fee of $450. Our records show that you received anAppraisal Hardship Waiver which effectively waived the upfront appraisal fee of$300. As for the earnest money depositthat was provided to the seller’s escrow company per the terms of the purchase contract you entered with the sellers; Liberty has no control over those funds and did not provide any guidance for the release of those funds. I would like to thank you for selecting Liberty for your potential home purchase and I do apologize if therewas any confusion over the loan requirements. Unfortunately, Liberty will not be able to issue a reimbursement for the loss of earnest money deposit, counseling fee or inspection fee. The income requirement was addressed with you per the conditions listed on the prequalification letter. Also, it may be important to note that thisloan application was not declined by Liberty and it was actually withdrawn by you. If you have any additional information pertaining to your complaint or would like further clarification onanything please feel free to contact me directly at [redacted]. Sincerely, [redacted]Risk Mitigation Specialist

Review: in jan 2014 I did a reverse mortage with liberty. at that time I asked [redacted] of liberty what all the fees were. she failed to tell me that with the appraisal of my home they would assess what my home needed for repairs. they had a notary come to my home with a 2 inch stack of documents for me to sign. I never knew of this provision. plus I have to pay for someone to see if I completed the repairs. I did not know of this and they are witholding $3500 of my money. I have received 8k so far, and to get out of this fraud, misrepresentation, and out right lies by this company, they want me to give them 15k plus to get out of this. the interest is supposed to be only on the money I have received which is like 3%. this is outright theft of an at risk adult, and a 2 time cancer survivor. this company preyed on me and my illness. I never got the full cost of this. this is my home and they think they can tell me how to run it. this place is a ripoff and I think they are crooks, they load you up w paperwork and put in stuff they never told me about. they are thieves.Desired Settlement: they can have their money back but I will not pay 100% interest. I have gotton 8k so far and will refund that, but I will not give them 15k to get out of this. if we can come to an amicable solution, fine. but this is my home and they want to steal it by hidden costs and failure to inform me of all the fees. they are acting like its their home and im a renter and they can tell me what to do. they agreed on 97% on a line of credit when my home wa

Business

Response:

this letter is to acknowledge our receipt of the correspondence submitted to you on April 22, 2014 regarding [redacted]' reverse mortgage loan with Liberty Home Equity Solutions, Inc. ("Liberty").

Review: GENWORTH DID THINGS WHICH WERE NOT IN MY BEST INTEREST.

I WANTED TO ADD MY WIFE TO MY EXISTING REVERSE MORTGAGE. WE CONTACTED AMERICAN TRUST FUNDING MORTGAGE BANKER,LLC AND THEY SAID THAT THEY DID BUSINESS WITH GENWORTH FINANCIAL. WE PROCEEDED WITH FHA CASE NUMBER XXX-XXXXXXX AND THEN GENWORTH ALWAYS WANTED TO MAKE SOME CHANGES AND THAT CAUSED US TO HAVE TO PAY HECM COUNSELERS 2 TIMES BECAUSE GENWORTH WANTED THE APPRAISER TO MAKE CHANGES TO HIS APPRAISAL AND THEN THEY WOULD NOT ACCEPT HIS CHANGES. AFTER ABOUT 10 MONTHS WE WANTED TO TRANSFER THE CASE NUMBER TO ANOTHER COMPANY BECAUSE GENWORTH HAD REDUCED THE APPRAISED VALUE SO LOW THAT I WOULD HAVE TO PAY ABOUT $30.000 DOLLARS TO ADD MY WIFE AND THE OTHER COMPANY SAID THAT THEY MIGHT BE ABLE TO DO BETTER. GENWORTH ENTERED DATA ON SOME TRANSFER PAPERS THAT BLOCKED THE TRANSFER TO THE OTHER COMPANY UNTIL THE FHA CASE NUMBER COULD BE CLOSED OR RETIRED IN ABOUT 6 MONTHS AND WE COULD GET A NEW CASE NUMBER, WITHOUT GENWORTH BEING INVOLVED. THIS PROCESS WITH GENWORTH TOOK ABOUT 10 MONTHS. GENWORTH SENT A FORM THAT WAS CALLED FHA CONNECTION FOR APPRAISAL LOGGING AND THE FORM HAD CONFLICTING APPRAISAL DATES WHICH INDICATED A APPRAISED VALUE BEFORE THE CERTIFIED APPRAISER HAD COMPLETED AND SUBMITTED HIS FINAL APPRAISAL WHEN GENWORTH PUT IN A DATE OF 2-10-2013 AND THE CERTIFIED APPRAISAL IS DATED 2-27-2013 WHICH IS A 17 DAY DIFFERENCE. ARE THE GENWORTH PEOPLE THAT CHANGED OR CAN CHANGE THE APPRAISAL FROM A CERTIFIED AND LICENSED APPRAISER,CERTIFIED AND LICENSED TO DO APPRAISAL THEMSELVES? IF GENWORTH DID NOT WANT TO DO THE REVERSE MORTGAGE,WHY DID THEY NOT JUST DECLINE? GENWORTH CHANGED THEIR NAME TO LIBERTY HOME AFTER WE STARTED THE PROCESSDesired Settlement: FIX THE PAPER WORK SO THAT WE CAN TRANSFER THE CASE NUMBER OR GET A NEW NUMBER INDEPENDANT OF GENWORTH /LIBERTY HOME.

Business

Response:

Business' Initial Response

This letter is in response to the information submitted to you on June 4, 2013 by [redacted] regarding his reverse mortgage loan application with Liberty Home Equity Solutions, Inc. ("Liberty"), formerly known as Genworth Financial Home Equity Access, Inc. We review all customer inquiries promptly and we sincerely appreciate you bringing to our attention the concerns related to [redacted] and [redacted]'s loan transaction.

Mr. [redacted] expressed concern related to the appraised value of his home, adding Mrs. [redacted] to the loan and transferring his case assignment to another lender.

Our review of the file reflects that Mr. and Mrs. [redacted] first applied for a reverse mortgage loan with Liberty on July 19, 2012. A Federal Housing Administration ("FHA") case number is assigned to all FHA insured loans, and since a HECM loan is an FHA insured loan, it requires a case number assignment. Initially, the appraisal effective date was July 11, 2012 and the FHA case assignment was pulled on July 13, 2012. However, FHA requires that the case number assignment be assigned prior to ordering the appraisal inspection. Therefore, we required an updated appraisal before we could proceed with his loan transaction. The updated appraisal expired on November 11, 2012 while in the process of pending additional information from Mr. [redacted]'s broker, [redacted] with America Trust Funding Mortgage Bankers LLC, needed to satisfy the loan conditions before proceeding to closing. Underwriting reviewed the appraisal to determine if an extension could be granted. However, an extension could not be granted because the appraiser, [redacted] with [redacted] and [redacted] stated that the property was in a declining market, making the property ineligible for an extension. Since we could not proceed with the loan transaction without a current appraisal, Mr. [redacted]'s loan was cancelled on November 28, 2012.

Mr. and Mrs. [redacted] then applied for a reverse mortgage loan again on April 13, 2013 which required a new HECM counseling certificate. We received a new appraisal dated May 1, 2013. Once we receive the appraisal it is reviewed by our internal independent Appraisal Review team. We are obligated to review the appraisal report for accuracy, and as the lender, we are held accountable by HUD to ensure the value is supported based on the documentation in the appraisal report. Upon reviewing the appraised value of their home and the comparable sales, it was determined that the value was not supported. The comparable sales used by the appraiser appear to be in superior condition, including remodeling, superior finished basements and room count. Therefore, it was concluded by our Appraisal Review that the value of the subject property is $380,000.

Due to the reduced appraised value of the home, Mr. [redacted] requested his loan transaction be cancelled and that we transfer his case assignment. Per Mr. [redacted]'s request, his loan was cancelled on June 3, 2013 and his case assignment was transferred to [redacted]

Mr. [redacted] also expressed concern in regards to adding Mrs. [redacted] to the loan. Mrs. [redacted] was born in March 1950, and therefore meets the age requirement for a HECM reverse mortgage loan. As long as both Mr. and Mrs. [redacted] are on the title, both Mr. and Mrs. [redacted] would be included on the loan as co-borrowers.

We apologize that Mr. and Mrs. [redacted] are not completely satisfied with their reverse mortgage transaction. Liberty strives to ensure excellent service and customer satisfaction. We hope that we have adequately addressed the concerns Mr. [redacted] raised. Should he have any new concerns, please do not hesitate to notify us and we will be more than happy to address any new concerns he may have.

Consumer's Final Response

(The consumer indicated he/she DID NOT accept the response from the business.)

THEY DID NOT ADDRESS ALL OF MY QUESTIONS.ETC:THE QUALIFICATIONS OF THEIR REVEIW PERSONS. THE DEMOGRAPHICS IN WASHINGTON DC HAVE INCREASED THE VALUE OF EVERYTHING.THEY BUILD CONDO'S AND APARTMENT BUILDINGS ON WHAT WAS A LOT FOR A SINGLE HOME.

Revdex.com CAN CONSIDER THE MATTER CLOSED.

Business' Final Response

This letter is in response to the information submitted to you on June 20, 2013 by [redacted] regarding his reverse mortgage loan application with Liberty Home Equity Solutions, Inc. ("Liberty"), formerly known as Genworth Financial Home Equity Access, Inc. We review all customer inquiries promptly and we sincerely appreciate you bringing to our attention the concerns related to [redacted] and [redacted]'s loan transaction.

Mr. [redacted] expressed concern relating to the appraised value of his home.

Our review of the file reflects that Mr. and Mrs. [redacted] first applied for a reverse mortgage loan with Liberty on July 19, 2012. The appraisal expired on November 11, 2012 while in the process of pending additional information from Mr. [redacted]'s broker, [redacted] with America Trust Funding Mortgage Bankers LLC, needed to satisfy the loan conditions before proceeding to closing. Underwriting reviewed the appraisal to determine if an extension could be granted. However, an extension could not be granted because the appraiser, [redacted] with [redacted] and [redacted] Appraisers, Inc. stated that the property was in a declining market, making the property ineligible for an extension. Since we could not proceed with the loan transaction without a current appraisal, Mr. [redacted]'s loan was cancelled on November 28, 2012.

Mr. and Mrs. [redacted] then applied for a reverse mortgage loan again on April 13, 2013. We received a new appraisal dated May 1, 2013. Once we receive the appraisal it is reviewed by our internal independent Appraisal Review team. We are obligated to review the appraisal report for accuracy, and as the lender, we are held accountable by HUD to ensure the value is supported based on the documentation in the appraisal report. If the appraised value is not supported then HUD will not insure the loan which puts both the borrower and the lender at risk. Upon reviewing the appraised value of their home and the comparable sales, it was determined that the value was not supported.

The comparable sales used by the appraiser were all closed sales and were superior to the subject property in quality and condition. Additionally, all comparable sales used were renovated for the purpose of flipping the properties. The first comparable sales was completely remodeled including the kitchen, appliances, bathrooms, flooring, fixtures, paint, and molding. The second comparable sale had a much larger degree of updates including the kitchen, appliances, flooring, paint, fixtures, paint, molding, bathrooms and flooring. In addition, all three comparable sales have superior finished basements, more square footage and a higher room count. The appraiser later revised his report by adding an additional comparable sale. However, this comparison too was superior in condition to the subject property.

Multiple Listing Service ("MLS") is a nationwide listing service that provides the details on the sales and listings that occur across America. MLS data indicates that a large degree of properties in the subject property area have had extensive updating and are in the process of being (or have been) renovated. Depending on room count and square footage, these range in prices from the mid $300,000's up to the mid $600,000's. Similar "row" style homes in this market with limited updating, similar to that of the subject property, appear to have sale prices closer to the mid $300,000's. This is consistent with the data contained in the Residential Appraisal Report. Therefore, it was concluded by our Appraisal Review team that the value of the subject property is $380,000.

Please note that we did not change the value of the appraisal. The appraisal report still indicates the original value as when it was submitted. The Appraisal Review team simply reduced the appraised value based on their detailed analysis. In addition, it's important to note that any prior appraisals from another loan submission were not considered as part of this analysis as each appraisal report stands independently.

Due to the reduced appraised value of the home, Mr. [redacted] requested his loan transaction be cancelled and that we transfer his case assignment. Per Mr. [redacted]'s request, his loan was cancelled on June 3, 2013 and his case assignment was transferred to Maverick Funding Corp.

We apologize that Mr. and Mrs. [redacted] are not completely satisfied with their reverse mortgage transaction. Liberty strives to ensure excellent service and customer satisfaction. We hope that we have adequately addressed the concerns Mr. [redacted] raised. Should he have any new concerns, please do not hesitate to notify us and we will be more than happy to address any new concerns he may have.

Review: I got into contract with Liberty some years ago with the reverse mortgage company. I took out money to have my floors done and I was paying $138.00 a month. I took out about $800 one time and paid the money back. The reverse mortgage company switched to Genworth reverse mortgage and then back to Liberty. So my house has been paid off since 2000 and now that I am sickly they are trying to say I owe $7000 and is trying to take me to court knowing I am elderly. This company is trying to take my home from me and I am trying to put my house on the market and move into a senior home and I need my deed to my house.Desired Settlement: DesiredSettlementID: Other (requires explanation)

I would like them to close the account out and send my deed to my house back to me. They can send it to [redacted]. This man has been taking care of all my business and taking care of me very well. You can reach him at [redacted]

Business

Response:

Liberty has sent a full explanation to the borrower regarding the origination of the loan and the loan's current status. The loan in question was originated in 2009 which included paying off a prior mortgage. The $7,000 mentioned in the complaint was not part of the initial loan balance; this amount reflects funds that were advanced by Liberty to pay for outstanding property charges such as tax and insurance. This is amount remains unpaid and has caused the loan to go into a default status as required on a Home Equity Conversion Mortgage. Liberty tries to work with all borrowers when events such as this occur, however we are required to follow specific servicing guidelines on FHA insured loans, especially when there are funds advanced to pay for delinquent property charges.

Consumer

Response:

I am rejecting this response because:I am rejecting this because my husband used his VA Loan to buy this house. The loan I took out was for my floors and that was not that much. I took one loan and never used it again. So where do you get that small loan to a huge amount. I am 81 years old and I am no fool. The loan companies switched twice from gentile to liberty and now you are trying to take my house.

Business

Response:

The borrower closed her reverse mortgage loan on June 11, 2009; this was not a small loan with a purpose to only pay for small repairs. The loan initially paid off a prior lien with [redacted] which totalled $117,018.08 and is evidenced by the enclosed Final HUD-1 Settlement Statement as well as a Payoff from [redacted]. The borrower has been in litigation with Liberty Home Equity Solutions, Inc. since 2012 over this foreclosure matter. Since the filing of this matter with the Chancery Division of Cook County, IL; the borrower has appeared in court where she would have been able to review or dispute any facts in this foreclosure matter.

Review: After filing for a Reverse Mortgage, we were told that our home was only worth $33,000.00, according to our appraised value. We received a copy of the appraisal, and it said that our home is worth $77,000.00. That's a big difference. We were told that our loan would be $23,000.00, and we recieved 17,000.00 cash. I believe that we were subjected to a predetory loanDesired Settlement: Please make up the differance between $33,000.00 and $77,000.00 in a line of credit.

Business

Response:

During the origination process of this loan in 2013 our direct endorsment underwriters and appraisal review team found discrepancies with the initial appraisal and the comparable sales used to value the subject property at $77,000. After review and a separate "drive by" appraisal (which was not charged to the borrower) a value of $38,000 was determined to be more accepatble. As a direct endorsement lender approved by the FHA it is our responsibility to approve lending values that are most appropriate for the subject property. Although the appraiser used for this transaction was an independent FHA approved appraiser the lender still has authority to determine a lower property value if there are reasonable discrepancies. The lowering of the value was addressed with the borrower prior to the closing of the loan and the borrower was also given a 3 day rescission period after reviewing and executing all of the closing documents. We have reached out to the borrower and will be following up with any requests he may have.