Strategic Financial Group, Inc.

On March 13 2015 we sent a letter to the company requesting that they substantiate their mailer. We asked Strategic Financial Group to explain how the HUD Benefit Program and the HUD Home Loan Program applies to a Reverse Mortgage Loan. One would assume that the mailer is coming directly from the U.S. Department of Housing & Urban Development (HUD) as this Government Agency’s name and insignia is located in large font on the letterhead of the mailer. Our office contacted HUD and they were unable to verify if Strategic Financial Group Inc. or Pacific Coast Lending Group were approved lenders. We asked Strategic Financial Group Inc. to substantiate if they are a HUD Approved Lender an FHA Sponsored Originator or if it is an endorsed corporation of HUD and to provide evidence of this. According to their quote package the consumer is required to pay a one-time “upfront” Mortgage Insurance Premium (MIP) with no out of pocket cost for the consumer. We also asked them for clarification of who is responsible to pay for the MIP and at what stage of the Reverse Mortgage Loan process does it have to be paid. ~~On March 25 2015 the company responded by stating they are an approved lending institution by HUD and they use the UD Department of Housing and Urban Development FHA Approved Lending Institution logo on all mailings and it has been approved for use. The company failed to provide any evidence of this and did not provide clarification as to who is responsible to pay for the MIP and at what stage of the Reverse Mortgage Loan process does it have to be paid. ~