I wrote a short blog post about Live Well Financial’s previous situation some weeks ago. But yes, it seems that one of the biggest reverse mortgage competitors in the game is finally shutting its doors for good, and it looks like that’s just the tip of the iceberg. Seems like Livewell has entered a federal investigation with no other than the FBI and the Securities and Exchange Commission.
Once at the top of the american reverse mortgage companies, Live Well Financial stopped all of their originations on May 3. With no real explanation for the sudden halt, more than a hundred employees lost their jobs. Mayor lawsuit were sure the ensue when Live Well was accused of owing more than $74 million dollars.
The company is being pushed toward chapter seven bankruptcy, and both the FBI and the SEC have been in talks with the creditors, these have explained how Live Well has been unresponsive since May 3.
This is what the creditors had to say about the matter:
“Live Well has stonewalled the petitioning creditors’ every attempt to obtain information regarding the repayment of the obligations, the circumstances surrounding the abrupt shutdown of Live Well’s business and Live Well’s intentions regarding the preservation of its assets (...) This is not merely the failure to return a phone call; this is active concealment…”
More information to follow!