The New York Department of Financial Services is reportedly launching an investigation into the reverse mortgage divisions of Nationstar Mortgage and Walter Investment Management Corp., according to the New York Post.
The New York Post article, posted Friday, states that the NYDFS is investigating Reverse Mortgage Solutions, a division of Walter Investment, and Champion Mortgage, a division of Nationstar.
According to the Post, the investigation stems from a previous Post report about the rise in reverse mortgage foreclosures that it published Aug. 24.
From the Post:
In letters sent to RMS President Chris Mullins and Nationstar Executive VP Anthony Villani, which were provided by DFS to The Post, the agency set a deadline of Aug. 17 for detailed breakdowns of all the reverse mortgages the two firms service for New York consumers, or that Champion originated related to New York properties, going back to 2009.
DFS is casting a wide net for information about RMS’ and Champion’s reverse-mortgage operations in New York State. The regulator is seeking documents related to alleged defaults, efforts to help borrowers catch up, complaint logs and responses, a list of all foreclosures against New York borrowers, and a status update on those cases.
According to the Post, a Nationstar spokesperson said the company has never originated a reverse mortgage in New York, while the Post said that RMS did not respond to a request for comment.
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