The testimony of Michael Allen, 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 MICHAEL ALLEN
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 Michael Allen. I live in Phoenix, Arizona. I am Successor Trustee for my mother, the borrower of a Financial Freedom reverse mortgage.
My mother’s intention for her estate was for her family to sell the home to repay the loan. She died on June 12, 2014
At all times, I was in compliance with HUD regulations to the best of my ability based on the limited information provided by OneWest Bank.
OneWest Bank (OWB) did not provide a Single Point of Contact nor provide any guidance or instruction to help me satisfy the loan.
I initiated all calls to OWB and spoke to a different person with a different story and different reason to deny my requests.
OWB claimed they didn’t get my documents time after time. THEY DID
OWB sent me a short sale packet twice after I wrote saying I wanted to pay the lesser amount of the loan balance. The appraised value was about $35,000 more than the loan balance.
OWB refused to perform or pay for a HUD required appraisal.
I called OWB on October 1st to inform them a sale was in process.
On 11/3 I received notification that OWB had recorded a Notice of Trustee sale on September 29, approx 3 months after my mother’s death and 2 months after receipt of the repayment letter.
OWB used Arizona foreclosure laws to violate HUD regulations and my right to time to sell the property.
I called OWB – they refused to postpone auction.
The auction was cancelled with HUD intervention.
OWB added foreclosure related legal fees and drive by appraisal fees to the payoff.
The only phone call I ever received from OWB was on December 19 to tell me they have no intention of removing the accelerated foreclosure fees.
My story is illustrative of OneWest Bank’s violation of my right to repay the loan, the acceleration of foreclosure, and the related legal and appraisal fees of $2,508.50 and an unidentified servicing advance of $1,839.00 we did not receive.
I should not have to pay for OneWest Bank’s violations of HUD regulations or my 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.