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EPISODE #805
AARP joins class action lawsuit against RMF and Celink
[Reverse Mortgage Daily]
AARP has joined a class action lawsuit against former reverse mortgage lender Reverse Mortgage Funding (RMF) and loan servicer Celink.
Other Stories:
- [Money.com] Redfin & Zillow: Where mortgage rates and home prices are heading
- [Ginnie Mae] Ginnie Mae reveals HECM mortgage-backed securities particulars
   
 
3 Comments
Thanks Shannon for the excellent summary of what’s going on in the reverse mortgage world.
Thank you, Bruce!
One issue not being addressed about RMF in this podcast is what, if anything, will come out of the investigation of HUD’s OIG into the impact of the RMF debacle (bankruptcy) on Ginnie Mae? Central to the debacle is what caused it? Not only was RMF a Top 10 lender but it almost seemed to bask in the concept that its management was among the best at handling the financial aspects of the HECM business.
So why in a matter of months AFTER buying a portion of the AAG HECM portfolio, did RMF conclude that servicing that same portfolio would bankrupt RMF??? Was there a deep underlying flaw in its acquisition due diligence analysis and were the smartest HECM guys in the room not as smart as they seemed to make themselves out to be? Was the end of MetLife in the industry a forerunner of what would occur with RMF? Will the root cause of the debacle be uncovered or is it such a disaster no one wants to touch it?
While RMF may have performed the best acquisition due diligence of all time, why have we heard absolutely nothing about it? Did external forces change so dramatically in the few months after acquisition and before declaration of bankruptcy that a successful acquisition relied upon that conclusions about the viability of RMF came into question? If so, was such reliance reasonable based on conditions at the time of acquisition? So many questions and so much silence.
If the debacle had not occurred, would there be the current lawsuit that AARP is supporting? It would seem that HUD, FHA, and Ginnie Mae would want to get to the bottom of this….