The testimony of Elizabeth Lavulo, a surviving family member of a OneWest reverse mortgage borrower, about the proposed OneWest and CIT Group merger, is featured in its entirety below. If you were unable to attend the hearing, CRC live-blogged it here and you may also find our CIT Group/OneWest Merger resource page helpful as well. Pictures of the rally against the merger are available here.
TESTIMONY OF ELIZABETH LAVULO
PUBLIC MEETING FEBRUARY 26, 2015, 8 AM to 4 PM
FEDERAL RESERVE BANK, LOS ANGELES BRANCH
Thank you for the opportunity to testify today. My testimony is in opposition to the proposed merger of OneWest Bank and CIT Financial.
My name is Elizabeth Lavulo. My family property is located in Salt Lake City, Utah. I am a Marketing and PR Executive.
When my Grandmother was sold a reverse mortgage her conditional acceptance was for her family to retain the property after her death.
When she passed away, I did everything according to HUD regulations to repay the loan.
Beginning with the repayment letter, One West Bank (OWB):
Did not provide a Single Point of Contact or anyone helpful.
OWB said they didn’t get my documents – time after time. THEY DID
OWB claimed I did not have legal authority to speak to them or act on behalf of my grandmother’s estate – I DID
OWB Accelerated foreclosure 4 months after my Grandmother’s death
OWB refused to honor my letter of intent to repay the loan and refused to grant me the HUD authorized time to obtain a new loan.
I provided proof of loan approval multiple times
The OWB response: 3 attempts to auction the property in 6 weeks – on September 17th, October 17th and October 31st 2014. It was only stopped with hours to spare by HUD intervention.
Escrow proceeded and certified funds were sent per the OWB loan payoff statement.
OWB refused to accept the certified funds and demanded additional legal fees because OWB chose to list the property for auction a 4th time. OWB’s statement to escrow “If the additional fees for listing the property for auction are not paid immediately OWB will return the certified funds and auction the property.”
In order to close the loan I was forced to pay $2,015.60 in foreclosure related costs and legal fees for the decision of OWB to accelerate foreclosure and auction 4 times.
My story in illustrative of OneWest Bank’s refusal to allow consumers to repay reverse mortgage loans with certified funds, to accelerate foreclosure, and violate all federal regulations and consumer rights.
I request an Investigation, audit, and review of OWB Reverse Mortgage Loan Files
- For the servicing violations of Federal Regulations and consumer rights
- To ensure compliance with existing laws and regulations.
Documented evidence of my testimony can be provided upon request.