FHA Reverse Mortgage Servicer Novad Management Consulting Named Worst Mortgage Servicer Ever!
The other day I wrote that Tom Lennon’s reverse mortgage case is the craziest case I have had in 13 years.
It’s also the first time I have had to deal with Novad Management Consulting. Novad Management Consulting is one of the most ineptly ran mortgage servicers I have ever dealt with.
Matter of fact, Pee Pants, the inebriated hobo clown could run this company better than CEO Davon Kelly.
Customer calls to Novad get forwarded to the FHA Call Center and HUD. Unfortunately, no one at FHA or HUD has access to your file. So, all they can do is act as glorified receptionists.
Seriously, the incoming HUD secretary needs to examine the FHA’s business relationship with Novad Management Consulting.
Below is the story of the nightmare Novad Management Consulting has put Tom Lennon through.
How The Management Consulting Nightmare Began
Back in August, US Army veteran Tom Lennon decided to pay off his reverse mortgage. He contacted his reverse mortgage servicer, Champion Mortgage about how to pay off his reverse mortgage and Champion emailed him wiring instructions and his payoff figure of $171,939.78. This figure was good through September 1st.
On August 20th, Tom wired transferred the $171,939.78 from his TD Bank account to Champion Mortgage’s account at JPMorgan Chase. Tom assumed Champion Mortgage would record a Satisfaction of Mortgage with the Collier County Clerk.
However, that’s not what happened. Less than a week later, Tom received a letter from Champion informing him his loan had been transferred to FHA. The letter also informed him that FHA was using Novad Management Consulting to service the loan.
MFI-Miami contacted Champion to inquire about the wire transfer of $171,939.78. Champion Mortgage informed us they were no longer in possession of the file because they sold the loan to FHA. Champion informed us we needed to contact Novad Management Consulting.
Did Novad Management Consulting And Champion Mortgage Knowingly Violate Federal Law?
This alone is a serious violation of both the Dodd-Frank Act and the Truth-In-Lending Act (TILA). Lenders are to notify homeowners before the transfer of the servicing occurs. They failed to notify the Lennons of the pending transfer. Yet, they collected the $171,939.78 from Tom Lennon days before the transfer.
Champion also failed to notify the Lennons that they also sold the note and mortgage to FHA. This is also a requirement under the Dodd-Frank Act.
TILA requires lenders to keep mortgage records for 12 months after the loan servicing is transferred or the file is closed.
Champion still has not responded to my request for documents I sent them the first week of October. Failure to comply with QWR is also a TILA violation.
All these TILA violations allow Tom Lennon to seek hefty payouts and attorney fees from the parties involved.
Ironically, FHA’s servicer, Novad Management Consulting has also refused to supply us with documents including a transaction history within 30 days as mandated under the revisions made to the TILA and RESPA under the Dodd-Frank Act. It’s pretty bad when an FHA servicer is violating federal law.
Dealing With Novad Management Consulting Is A Nightmare
I’ve had to deal with a lot of pain in the ass mortgage servicers over the past 13 years. However, I have never dealt with one as irritating and frustrating as FHA servicer, Novad Management Consulting.
It took Novad and FHA nearly two months to give us any answers about what was going on Tom Lennon’s reverse mortgage.
Novad finally responded at the end of October. They informed us that they received the $171,939.78 from Champion Mortgage. However, the pay off amount was incorrect.
Novad claimed there was still an outstanding balance of $580.74. They also informed us that they would not record a satisfaction of the mortgage with the Collier County Clerk unless they were paid the $580.74
Novad Management Consulting Tries To Bamboozle $580.00 Out Of Florida Army Veteran
However, this contradicts the October mortgage statement from Novad. It seems Champion did not make an error in the payoff. Novad was charging the Lennons $580.74 in accrued interest for September and October.
The Lennons decided to pay the $580.74 just to have this loan closed out. We contacted Novad and FHA for wiring instructions to pay off the loan.
Unfortunately, HUD who oversees FHA does not accept wire transfers. They only accept cashier’s checks. Yes, you heard that right. An executive-level federal agency with a $44 Billion budget that answers directly to the President of the United States does not accept wire transfers.
So, on November 4th, Tom Lennon drove to his TD Bank branch in Naples and got a cashier’s check for $580.74. He then stopped by his local UPS store and overnighted the cashier’s check with a copy of the statement to Novad’s corporate office in Oklahoma City.
However, here it over three weeks later and Novad still has not acknowledged receipt of or posted Tom’s payment. UPS indicates Novad received the payment. So why the payment has not been posted is unknown.