Home equity conversion mortgages (HECMs) are what the complaint for this class action calls “the federally-insured version of so-called ‘reverse mortgage’ loans[.]” The complaint calls out the practices of Compu-Link Corporation, which does business as Celink, and Reverse Mortgage Funding, LLC (RMF), alleging that the companies have added fees, costs, charges, and penalties to HECM loans in ways that violate state and federal laws.
The Servicing Fees Class is all borrowers, and the heirs and estates of borrowers, who had a HECM or reverse mortgage loan serviced or subserviced by Celink or RMF since December 21, 2012 and whose loans were charged as assessed fees, costs, charges, penalties, interest, or mortgage insurance premiums related to addition of the following service fees to loan balances: (1) appraisal fees after loans were deemed due and payable, (2) all foreclosure-related fees after Celink failed to provide state-required pre-foreclosure filing notices, and (3) all inflated or false attorneys’ fees or costs.
A New York Subclass has been defined as all members of the above class whose homes securing the HECM or reverse mortgage loan were located in New York.
RMF services HECM loans and subcontracts the servicing to Celink, the complaint alleges, with the additional charges at issue in this case actually imposed by Celink. However, the complaint finds RMF also responsible for the wrongdoing: “RMF failed to adequately supervise, detect, prevent, and correct Celink’s misconduct and systemic violations. RMF is jointly and independently liable for Celink’s servicing violations…”
The additional charges are added to the loan balance, the complaint alleges, which means that the borrowers are penalized not only by the charges themselves but also by the interest on the amounts added to the loan balance and the mortgage insurance also figured as a percentage of the loan balance.
What kind of charges does Celink add? “For example,” the complaint alleges, “Celink routinely files foreclosure lawsuits for its principals, including RMF, without providing mandatory, pre-filing notices mandated by New York law intended to avoid and prevent reverse mortgage foreclosure laws.” The complaint also cites “Attorneys Fees/Costs” and “Appraisal Costs” as examples of false, unlawful or inflated charges that may be assessed to borrowers, and other charges it alleges are in violation of federal laws and regulations.
The complaint points to a similar class action filed in the Eastern District of New York in 2018, alleging similar claims against Celink and RMF.
Among the current complaint’s causes of action are breach of contract, breach of HECM loan agreements, and breach of the covenant of good faith and fair dealing.
Article Type: LawsuitTopic: Loans
Most Recent Case Event
Celink and RMF Reverse Mortgage Extra Charges Complaint
October 14, 2022
Home equity conversion mortgages (HECMs) are what the complaint for this class action calls “the federally-insured version of so-called ‘reverse mortgage’ loans[.]” The complaint calls out the practices of Compu-Link Corporation, which does business as Celink, and Reverse Mortgage Funding, LLC (RMF), alleging that the companies have added fees, costs, charges, and penalties to HECM loans in ways that violate state and federal laws.
Celink and RMF Reverse Mortgage Extra Charges ComplaintCase Event History
Celink and RMF Reverse Mortgage Extra Charges Complaint
October 14, 2022
Home equity conversion mortgages (HECMs) are what the complaint for this class action calls “the federally-insured version of so-called ‘reverse mortgage’ loans[.]” The complaint calls out the practices of Compu-Link Corporation, which does business as Celink, and Reverse Mortgage Funding, LLC (RMF), alleging that the companies have added fees, costs, charges, and penalties to HECM loans in ways that violate state and federal laws.
Celink and RMF Reverse Mortgage Extra Charges Complaint