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In Metro Atlanta, Athens and NE Georgia

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Consumer Complaints

BBB Accredited Business since 05/01/2009

Generation Mortgage Company (Headquarters)

Phone: (404) 995-5500Fax: (404) 995-5401

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Customer Complaints Summary

7 complaints closed with BBB in last 3 years | 3 closed in last 12 months
Complaint TypeTotal Closed Complaints
Billing / Collection Issues1
Problems with Product / Service6
Advertising / Sales Issues0
Delivery Issues0
Guarantee / Warranty Issues0
Total Closed Complaints7

Complaint Breakdown by ResolutionAbout Complaint Details

Complaint Resolution Log (7)BBB Closure Definitions
10/10/2013Billing / Collection Issues | Read Complaint Details
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Additional Notes

Complaint Category: Failure to correct billing errors

Complaint: I have a reverse mortgage with Generation Mortgage and every year they request confirmation of my homeowners insurance. They send a letter and request the insurance information be sent to; /. On 2/14/2013 I sent my information for my policy dated 01/09/2013 to 01/09/2014 and received a confirmation from the site that they received my insurance info. I received a letter dated 03/19/13 saying they were going to place lender's insurance on my house. I called on 3/26/13 and spoke with ****, gave her all my information that she checked was the same as last year. She said she would cancel the insurance and fix my record. On my statement dated 06/30/13 I was billed $414.00 for insurance. I called immediately and spoke with *****. She had me fax her a copy of my insurance declaration statement and again confirmed that my insurance was OK and the amount plus interest would be removed from my account. I received a letter dated 7/23/13 acknowledging the cancellation of the lender's insurance.On my 07/31/13 statement the amount plus interest still has not been removed from my account. After speaking with a couple of people in the office I asked for the manager of the insurance dept. Her name is ***** ******** I left her a message today, since she was on another call, and said if I did not hear from her today to clear up this error of theirs that I would file a complaint with the BBB. Obviously they do not care how they treat seniors and how they do business. How many other older people do they rip off with this kind of shady business practices, I would like to know.
Product_Or_Service: reverse mortgage
Account_Number: XXXXXXXXXX

Initial Business Response
October 8, 2013

Ms. ***** *******
BBB Dispute Resolution Center
503 Oak Place, Suite 590
College Park, GA XXXXX

Via BBB website: -https://atlanta.bbb.org/atlanta/complaintreply/b

RE: Ms. ******* *****, **** ********* ****** ***** ***** ** ********** ("Subject Property")
Complaint Number: Case #XXXXXXXX

Dear Ms. ********

This letter is in response to the above-referenced consumer complaint, which was filed on September 24, 2013 with the Better Business Bureau by ******* ***** ("Complainant"). Ms. ***** is a borrower on a Home Equity Conversion Mortgage ("HECM") secured by the Subject Property.
The complaint states that on February 14, 2013, she uploaded Generation Mortgage Company's ("GMC") required, annual confirmation of her homeowners' insurance coverage directly to the on-line insurance verification system of GMC's third party insurance monitoring provider, ************* ******* ("OSC"). Complainant also states that she received a confirmation from OSC of the delivery of this insurance information. However, on March 19, 2013 the Complainant received notification that lender placed insurance was to be ordered. On March 26, 2013, the Complainant spoke with **** (of OSC) who confirmed receipt of Complainant's insurance and stated she would correct Complainant's account and reverse the order of lender-placed insurance.
On June 13, 2013, lender-placed insurance was charged to the Complainant's loan balance in the amount of $414. The charge was incurred based on what GMC believed to be a lapse in coverage. This charge appeared in the Complainant's Statement for the month ending June 30, 2013.
GMC's independent audit of the borrower's account confirmed that the Complainant had submitted proof of insurance coverage to OSC, and that the assignment of lender-placed insurance was an error. On September 11, 2013, GMCadvised the Complainant that the original $414 charge to her account was reversed. Additionally, on September 23, 2013 GMC mailed the Complainant a check in the amount of $3.25 as reimbursement of the interest amount that was erroneously added to the Complainant's balance. As a result of these actions, GMC believes it has resolved the Complainant's concern.
GMC apologizes for the inconvenience.

We appreciate the opportunity to respond to the complaint as addressed above. Should you have any questions, I can be reached at (XXX) XXX-XXXX.

Sincerely,

***** *****
Director, Quality Risk Management




Final Consumer Response
(The consumer indicated he/she ACCEPTED the response from the business.)
As of my statement dated 9/30/2013 the insurance problem starting in 2/1/2013 is finally resolved. It took monthly calls with promises that it was fixed since 2/2013,then a charge for insurance 6/2013 of $414.00 and then multiple calls to finally remove that amount and interest from my account, 8 months later. This clearly shows they do not know how to run this area of their company. This is the second year I have had to deal with the same problem and in three more months I will probably have to do it again. If you can get a reverse mortgage anywhere else DO IT. DO NOT DEAL WITH THIS COMPANY.

Complaint Resolution: Company resolved the complaint issues. The consumer acknowledged acceptance to BBB.

07/19/2013Problems with Product / Service
12/20/2012Problems with Product / Service
07/12/2012Problems with Product / Service
05/17/2012Problems with Product / Service
02/10/2014Problems with Product / Service | Read Complaint Details
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Additional Notes

Complaint Category: Unauthorized service

Complaint: They sold my Reverse Mortgage account to ******** Mortgage without my having any say.
Product: Reverse Mortgage
Problem Date: 01/12/2014
Purchase Date: Can not remember
Acct # ********** (Generation Mortgage Account)
Acct # ******* ********* ******** Account)

Generation Mortgage sold my account without any notification from them, ******** Mortgage sent us a letter saying they had purchased our loan (not reverse mortgage account).

When we got our first statement from ******** Mortgage our line of credit had decreased by $470 and Outstanding Principle & Balance had increased by $359.70. With Generation Mortgage our line of credit had always increased.

Initial Business Response
Contact Name and Title: ***** *****
Contact Phone: XXX-XXX-XXXX
Contact Email: **********************************
January 27, 2014

Ms. ***** *******
BBB Dispute Resolution Center
503 Oak Place, Suite 590
College Park, GA 30349

Via BBB website: -https://atlanta.bbb.org/atlanta/complaintreply/b

RE: Mr. ***** ********
*** ****** ***** ***** ******** ** ***** ("Subject Property")
Complaint Number: Case #XXXXXXXXX

Dear Ms. ********

This letter is in response to the above-referenced consumer complaint, filed with the Better Business Bureau on January 13, 2014 by ***** ******** ("Complainant"). Mr. ******** is a borrower on a Home Equity Conversion Mortgage ("HECM") that was originally serviced by Generation Mortgage Company ("GMC"). The servicing rights for this HECM were recently sold and transferred to ******** Mortgage, ******** ******** ***************
Complainant states that GMC sold his HECM without any notification and he questions the accuracy of the balances subsequently reported to him by ********* We have researched this complaint and offer the following response:
GMC sold a block of servicing rights to ******** Mortgage. The Complainant's loan was included in the sale. In November 2013, in accordance with the Real Estate Settlement Procedures Act ("RESPA"), GMC notified the Complainant that the servicing of his HECM had been transferred to ********* A copy of that correspondence is included as Attachment 1. Complainant does not dispute the accuracy of the November 2013 statement, which was the last monthly statement prepared by GMC for the Complainant's loan. . Complainant cites to account balance errors reflected on the December 31, 2013 loan statement, which was prepared after GMC transferred the loan. Accordingly, the preparation of the relevant statement was outside the control of GMC. In attempt to avoid duplication of efforts or any other inconvenience to the consumer, GMC has contacted ******** and its parent company ********** Mortgage regarding this type of alleged loan balance error. As a result of these discussions, ********** Mortgage instructed GMC to direct any customer complaints to ******************************. The Customer Relations team at ******** will then address the concerns/inquiries and bring them to resolution. Calls should also be directed back into ******** Mortgage at X-XXX-XXX-XXXX for any information regarding their account. Accordingly, we encourage the Complainant to inquire directly with ******** for the ultimate resolution to his concerns and the accuracy of reported loan balances. However, I have provided the Complainant with my direct contact information to assure his concerns are ultimately addressed by *********
We appreciate the opportunity to respond to the complaint as addressed above. Should you have any questions, I can be reached at (XXX) XXX-XXXX.

Sincerely,


***** *****
Quality Risk Management


ATTACHMENT
November 6, 2013
Loan#: XXXXXXXXXX
***** ** *** ***** ** ********
*** ****** ***** ****
******** ** XXXXXXXXX
NOTICE OF ASSIGNMENT, SALE, OR TRANSFER OF SERVICING RIGHTS
Please be advised that effective 11/30/2013, the beneficial interest and servicing of your loan with Generation Mortgage Company, secured by a Note has been assigned to ******** Mortgage.
The assignment, sale and/or transfer of the servicing of the mortgage loan does not affect any term or condition of the mortgage instrument, other than terms directly related to the servicing of your loan. The terms and conditions of your loan will not change and will be honored by ******** Mortgage.
Except in limited circumstances, the law requires that your present Servicer send you notice of the transfer at least 15 days before the effective day of transfer, or at closing. Your new Servicer must also send you this notice no later than 15 days after the effective date of the transfer or at closing.
Your present Servicer is Generation Mortgage Company. If you have any questions relating to the transfer of servicing from your present Servicer, please call them at XXXXXXXXXXX between 8:30 am
and 5:30 pm Eastern Time Zone, Monday through Friday.
Your new Servicer will be ******** Mortgage. Your loan number noted above will be used by your new Servicer. Beginning December 1, 2013 you should mail all correspondence and LOC draw
requests to your new Servicer at the address indicated below:
******** Mortgage
** *** XXXXX
******** ** XXXXX
If you have any question concerning the transfer and/or status of your account commencing on or after December 1, 2013, please contact ******** Mortgage. Their number is XXXXXXXXXX and
hours of operation are: 8am8pm ET Monday - Thursday, and 8am5pm ET Fridays.
The last date that your present Servicer will accept correspondence or LOC draw requests from you is November 27, 2013. The date that ******** Mortgage starts accepting correspondence or LOC
draw requests from you is December 2, 2013.
You should also be aware of the following information, which is set out in more detail in Section 6 of the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. 2605):
During the 60day period following the effective date of the transfer of the loan servicing, as loan payments are not required to be received, a late fee is not applicable and may not be imposed on you.
Section 6 of RESPA (12 U.S.C. 2605) gives you certain consumer rights. If you send a "qualified written request" to your loan Servicer concerning the servicing of your loan, your Servicer must provide you with a written acknowledgment within 20 Business Days of receipt of your request. A "qualified written request" is a written correspondence, other than notice on a payment coupon or other payment medium supplied by the Servicer, which includes your name and account number, and your statement of the reasons for your belief, to the extent applicable, that the account is in error or provides sufficient detail to the Servicer regarding other information you are seeking. If you want to send a "qualified written request" regarding the servicing of your loan, it must be sent to:
******** ********
** *** XXXXX
******** ** XXXXXXXXX
Not later than 60 Business Days after receiving your qualified written request, your Servicer must make any appropriate corrections to your account, and/or, must provide you with a written explanation or clarification regarding any dispute. During this 60 Business Day period, your Servicer may not provide information to a consumer reporting agency concerning any overdue payment related to such period or qualified written request. However, this does not prevent the Servicer from initiating foreclosure if proper grounds exist under the mortgage documents.
A Business Day is a day on which the offices of the business entity are open to the public for carrying on substantially all of its business functions.
Section 6 of RESPA also provides for damages and costs for individuals or classes of individuals in circumstances where Servicers are shown to have violated the requirements of that section. You should seek legal advice if you believe your rights have been violated.
This is an attempt to collect a debt and any information obtained will be used for that purpose.
However, if this debt is involved in a bankruptcy or has been discharged in a bankruptcy proceeding,
this communication is not an attempt to collect a debt against you and any information obtained or
given will be for informational purposes only.
Regards,
Loan Servicing Department

Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
I did not receive the notification memo for whatever reason. However ******** Mortgage still states that it a Generation Mortgage error for the credit line difference. Generation Mortgage called me stating that ******** said it was their error and that ******** had called me to discuss this with me. I told Generation that this was not true and in fact it was I who called them about the lost of some of our line of credit monies balance. Not a hour after receiving the call from Generation I received a call from ******** they stating that Generation had called and said the error wad theirs (Generation). No matter what I still did not receive a notification from Generation about the sale and now the two companies are blaming the other for the lost after transfer on the line of credit balance.

Thanks
***** ********

Final Business Response
February 7, 2014

Ms. ***** *******
BBB Dispute Resolution Center
503 Oak Place, Suite 590
College Park, GA 30349

Via BBB website: -https://atlanta.bbb.org/atlanta/complaintreply/b

RE: Mr. ***** ********
*** ****** ***** ***** ******** ** ***** ("Subject Property")
Complaint Number: Case #XXXXXXXXX

Dear Ms. ********

This letter is in response to the above-referenced consumer complaint, filed with the Better Business Bureau on January 13, 2014 by ***** ******** ("Complainant"). Mr. ******** is a borrower on a Home Equity Conversion Mortgage ("HECM") that was originally serviced by Generation Mortgage Company ("GMC"). The servicing rights for this HECM were recently sold and transferred to ******** Mortgage, ******** ******** *************** On January 27, 2014, GMC submitted a letter of explanation regarding the above referenced compliant filed with your office. Complainant filed a rebuttal to GMC's explanation on January 28, 2014. This letter is in response to that rebuttal.

The regulations for the HECM program (4235.1REV-1: Home Equity Conversion Mortgages), Chapter 5: Calculation of Payments (11/18/94)) provide that the Principal Limit is the maximum amount of loan proceeds that can be disbursed. The Principal Limit increases each month.

The amount of the Principal Limit available for disbursement is calculated by taking the Current Principal Limit less the Current Service Fee Set-Aside, if applicable, less the Current Outstanding Loan Balance. This amount is referred to as the Net Principal Limit.

As of November 30, 2013, the Net Principal Limit on Mr. ********** loan was:

Current Principal Limit $135,516.26
Current Outstanding Loan Balance (81,866,08)
Service Fee Set-Aside ( 4,823.67)
Net Principal Limit $48,826.51



The amount reflected on his loan statement as of November 30, 2013 should have been $48,826.51. The Line of Credit balance on Mr. ********** monthly statement from Generation Mortgage Company exceeded the Net Principal Limit, which is not allowable under the HECM program. Therefore, the statements issued by GMC contained an error in the Line of Credit balance.

Although the statements from Generation Mortgage Company reflected a higher Line of Credit Balance, that higher amount was never available for disbursement to Mr. ********. Rather, the actual Line of Credit Balance has always been limited to the Net Principal Limit, which is the amount reflected on the statement issued by Mr. ********** new servicer, ******** Mortgage.

GMC has forwarded a copy of this same explanation to Mr. ******** for his records. Should Mr. ******** have any have any further questions regarding this specific situation, he should contact ******* *****, ******** of **** Operations. She *** be reached at XXX-XXX-XXXX ext. **** or ************************************.

We appreciate the opportunity to respond to the complaint as addressed above. Should you have any questions, I can be reached at (XXX) XXX-XXXX.

Sincerely,
***** *****
Quality Risk Management



Complaint Resolution: BBB determined that despite the company's reasonable effort to address complaint issues, the consumer remained dissatisfied.

05/06/2013Problems with Product / Service

Industry Comparison| Chart

Mortgage Brokers, Reverse Mortgage

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