The testimony of Noreen O’More, 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 ithere and you may also find our CIT Group/OneWest Merger resource page helpful as well. Pictures are available here.
TESTIMONY OF NOREEN O’MORE
PUBLIC MEETING FEBRUARY 26, 2015, 8 AM to 4 PM
FEDERAL RESERVE BANK, LOS ANGELES BRANCH
My name is Noreen O’More. I live in Salinas California. I am Accounting Assistant in a school district. My testimony is in opposition to the proposed merger of OneWest Bank (OWB) and CIT Group.
My father was a WW2, Korea & Viet Nam Veteran with 38 years military service. He got a reverse mortgage in 2002. My father’s wishes were for us to keep the family home he lived in for more than 50 years. He passed away in August of 2011
We contacted OWB immediately after his death to repay the loan
OWB never told us what our rights, options or responsibilities were.
We were never provided a Single Point of Contact.
We could never talk to the same person twice, our questions were not answered and paperwork was always lost or missing.
OWB did tell us they were required to do an appraisal – the 2011 appraisal was $99,000 we were told to do a short sale
We submitted all the documentation requested by OWB and secured financing 3 months after my father’s death.
We called, emailed and faxed every week or two for status. OWB kept delaying with one excuse after another for more than 18 months
OWB recorded a Notice Of Default in October 2012
OWB required another appraisal due to their delays – appraisal #2 was inflated and filled with wrong information about our property. Value $169,000
OWB posted a Notice of Trustee sale on our house. .
Suddenly in October 2013 OWB said we didn’t have legal authority to pay off the loan and demanded probate
More delays by OWB and a 3rd appraisal for $180,000.00
On October 31, 2013 OWB approved our short sale two years and three months after my father’s death.
Our story illustrates OneWest Bank’s violation of our right to payoff my father’s reverse mortgage for 95% of the appraised value.
OWB accelerated foreclosure and set auctions when we provided proof of funds
OWB delayed the repayment process for over 2 years forcing us to pay an additional $89,000 due to increased property value.
We closed the loan one day before the auction set by OWB.
This bank should not be allowed to merge and become a larger entity. They should be investigated for their lack of compliance with federal regulations, State laws and consumer protection rights.
Documented evidence of my testimony can be provided upon request.