The testimony of Lisa Rinard, 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 are available here.
TESTIMONY OF LISA RINARD
PUBLIC MEETING FEBRUARY 26, 2015, 8 AM to 4 PM
FEDERAL RESERVE BANK, LOS ANGELES BRANCH
My testimony is in opposition to the proposed merger of OneWest Bank (OWB) and CIT Financial.
My name is Lisa Rinard and I am a Registered Nurse at Ronald Regan UCLA Medical Center. I live in Hermosa Beach.
My husband, Ernie Rinard, deeded a condominium to his mother, Millie Rinard, so she could get a reverse mortgage for her support and care in her home as she aged.
Millie had a live in caretaker to assist with her daily living activities.
In 2005 her caretaker began submitting draw requests to OWB without Millie’s knowledge.
OWB approved the forged draw requests without any verification that an 80 year old woman was suddenly withdrawing large amounts of money
OWB deducted the draws from her Line of credit. The caretaker immediately transferred the deposits from Mrs. Rinard’s account to his personal bank account
We only discovered the fraudulent withdrawals in 2010.
The caretaker gave sworn testimony during a court hearing admitting to forging Mrs. Rinard’s signature and taking money without her permission.
Mrs. Rinard’s bank investigated and concluded fraud had occurred by the caretaker.
We notified OWB three times of the forged withdrawals in the amount of $198,504.85
Two OWB Managers acknowledged the signatures were suspicious and said OWB would investigate the matter.
When we requested a refund, OWB denied they had acknowledged fraud and refused to speak to us without a POA.
OWB made a legal and medical determination that the POA was not valid because Mrs. Rinard had dementia.
OWB refused to speak to us without a conservatorship which cost us $6,000
OWB continued to deny fraud and foreclosed.
Because of OWB’s refusal to refund any of the fraudulent funds, Mrs. Rinard was forced to live the last years of her life on Medi-Cal in a nursing home funded by taxpayer dollars.
Financial Freedom sold the Rinard property at a foreclosure sale on December 30, 2013 for $240,000 to OWB (parent company). The mortgage balance was $312,341.54.
OWB either submitted a claim to HUD for FHA insurance benefits or to the FDIC for the loss share agreement.
I request regulators investigate and perform audits of all reverse mortgage loan files for servicing and foreclosure violations and deficiencies I have outlined above. OneWest Bank must be held accountable for their consistent and deliberate failure to service elderly borrowers and their communities.
- The caretaker did not have POA or signatory rights to Mrs. Rinards accounts. All the ccaretaker’s actions were without Mrs. Rinard’s knowledge or consent.
- The Caretaker withdrew draws in the amount of $198,504.85 between 2005 -2010 until the Line of Credit was completely depleted.
- OWB paid the draw requests without verifying Mrs. Rinard’s signature.
Further documented evidence of my testimony can be provided upon request