ComplaintsforSenior Management Group, Inc.

• Initial Complaint

  05/15/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I first spoke with *************************** on Friday, 12 April, and have been corresponding with him frequently since then. I requested that all contact be in writing in order to avoid any misinterpretation or confusion. I was sent the brochure: Use your home to stay in your home. I read that carefully and have relied upon it and ***** representations ever since. In the brochure it indicated that Unlike conventional mortgages, there are no income requirements for these loans. All of my interest and submissions to Senior Management Group followed on from this statement. In researching reverse mortgages, I feel I am a most appropriate candidate. As is the title of your brochure: Use your home to stay in your home'. That is precisely what I wish to do for the time I have left to live. At this time, I have substantial equity in my home, and I wish to use that to provide funds for the near future. I note particularly the statement in their brochure: 'Unlike conventional mortgages, there are NO INCOME REQUIREMENTS FOR THESE LOANS. (Emphasis added)Currently, I am in very poor health. I have had a heart attack, and have stents in my heart, which is functioning at less that 40% efficiency at this time. I have an aortic aneurysm of 4.5 cm. I have only one kidney left, and it is not working properly I have been on dialysis. I have ******** ******. I am able to walk only with the aid of sticks. My life expectancy is certainly much less than that of a 'normal' 77 year old male.I am not able to work, nor am I able to apply for an equity refinance of my home. I am the perfect candidate for a reverse mortgage. Senior Management Group are We are reverse mortgage brokers. ...there are local banks in your area that I heard does waive some income and credit issues that our banks may not be able to. As Senior Management Group is a mortgage broker. I respectfully request that you place the loan with another bank. I have heard nothing since.

  Business response

  05/16/2024

  ****************** called our office regarding a letter he received inquiring about a reverse mortgage. Our loan officer took some initial information and asked ****************** if there was a convenient time to meet in person, to go over the loan program and give him the necessary documents he will need if he is interested in proceeding.   We provide a free in-home consultation and we meet all our clients in person.    A reverse mortgage is a very complex financial product, and we choose to do business this way so there are no misunderstandings.   ****************** requested that we don't meet and do everything via email to avoid what he thinks could have been any misunderstandings.  We complied with his request and conducted business via email.
  
  
  ****************** requested a "Specimen" application and we complied.  We requested from ****************** a list of documents needed to process his loan request. It was also mentioned that every borrower needs to be counseled by a HUD approved counselor before we can proceed.  The counseling is put in place to go over the application, the program in detail and to further answer any questions that a borrower may have.  This is one of the first steps after an application before we proceed. The counselor will ask us for the application to go over with the borrower, and they will also go over the "use your home to stay in home booklet".  When counseled, there is a cost that has to be paid for by the borrower. ****************** requested that the loan be underwritten before he does counseling to avoid and costs to him. In order to send a loan to an underwriter,  we would have to incur the cost of a credit fee, as well as run a tile search. We also mentioned we would pay the cost of his appraisal, roughly $700.00.  
  
  
  ****************** specifically asked via email, what are the income requirements to qualify. 
  
  In a subsequent email , included was a list of required income documents needed to process the loan.    The loan offer stated that the bank needs to see that he can demonstrate the ability to pay real estate taxes, homeowners' insurance as well as ***************.     ****************** complied and sent us the necessary documents so we can send to the underwriter to try to get him pre-approved before he would move forward and incur the counseling fee.   We then needed additional income documentation that ****************** sent in as well.
  
  
  We processed the loan and sent the file to a bank to underwrite.  it was determined by the bank underwriter that part of his income wasn't guaranteed fixed income.  Due to his HOA being somewhat high, he didn't have the ability to maintain the property carrying charges.  ******** would not  be able to do the loan.
  
  
  ****************** after learning this, read the *** HUD booklet where it mentioned the income requirements he is referring to to. However, prior to him mentioning the booklet, it was clearly explained that there were income requirements with these loans.  If we met in person, they would have been explained at the time of application and if he were to be counseled, this would have been explained in detail.  
  
  
  Senior Management Group is a mortgage broker whose primary business is getting homeowners a Reverse Mortgage. ****************** incurred no cost throughout this process.  We tried to comply and do business the way ****************** wanted to. Unfortunately, we couldn't help him with his loan request.
  
  
  Thank you for your understanding.
  
  

  Customer response

  05/17/2024

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  The budsiness responded:  ****************** specifically asked via email, what are the income requirements to qualify. 

  That is not true.  I indicated that I had been declined because of my income, and therefore would not make any advance paymenrts until I was assured that the loan would be approved.
  

  From the outset, I indicated that I had been turned down because of my income.  Thereafter I relied solely on the representations iin the booklet that there were NO INCOME REQUIREMENTRS
  

  Buisiness indicatee that they dealt with banks that had an income requirement, but that there were other banks in my area that did not have such requirment.
  

  Business failed to respond when I asked that, AS A LOAN BROKER, they contact other banks.  ********* has refused to answer queries since.
  

  I will niot deal with this business in any case as I believe they are making untrue and incomplete representatioins.
  

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