Live Well Financial, Inc. ("LWF") was an American privately owned mortgage originator, servicer and investor that operated between 2005 and 2019 when it was put into involuntary bankruptcy.
| Industry | Financial services |
|---|---|
| Founded | April 2005 |
| Founder | Michael Hild |
| Defunct | 2019 |
| Fate | Charged and convicted of fraud |
| Headquarters | 1011 Boulder Spring Dr #420, , |
Key people |
|
| Products | Mortgages |
Number of employees | 300+ (2016) |
| Criminal charge | Securities fraud, wire fraud, bank fraud |
Prior to its demise, it was licensed in the United States to operate in 46 states.[1] The company offered government-insured Home Equity Conversion Mortgage loans (HECM, commonly known as reverse mortgages), FHA single family mortgage loans, and Fannie Mae conforming loans. LWF was headquartered in Richmond, Virginia and had 3 retail origination branches, 2 in Richmond, Virginia and 1 in San Diego, California, with origination capabilities throughout the United States.[2]
The company and its principals were the focus of criminal and civil charges alleging a large-scale financial fraud in 2021, which the company's CEO, CFO, and head trader was found guilty of in a federal court.[3][4] In 2019, Live Well was placed under involuntary bankruptcy protection.[4]
History
editLive Well Financial, Inc. was founded in April 2005 by Michael C. Hild, chairman and chief executive officer.[5][6] In August 2005, the company received approval as a HUD Approved Mortgagee.
In August 2006, the company was approved as a seller/servicer of HECM with the Federal National Mortgage Association (FNMA).[2]
In March 2011, the company was approved for HUD Federal Housing Administration (FHA) single-family FHA loans.[7]
In February 2012, the company was approved as a Government National Mortgage Association (GNMA) Home Equity Conversion Mortgage-Backed Security (HMBS) issuer and issued its first HMBS in April of that year.[8]
In March 2013, the company was approved for GNMA MBS loans.[9] In June 2013, the company was approved as a seller/servicer of traditional mortgages with FNMA.[10]
During the first quarter of 2014 the company opened a retail call center in San Diego, CA. And in the fourth quarter of 2014 it opened a retail call center in Richmond, VA.[2] In August 2014, the company acquired a securities portfolio with a balance exceeding $530 million (notional) and hired a NYC based trading team.[11] LWF has originated and serviced more than $3.3 billion in mortgage loans in the U.S. and Puerto Rico. [12][13]
As of May 3, 2019, Live Well Financial shut down active operations. All forward loans and loan applications in process with them at the time (without closing documents finalized) were notified that they were not funding. All 103 employees were abruptly laid off four months before CEO Michael Hild's arrest, and the company was placed under involuntary bankruptcy protection.[4][14]
Live Well Financial no longer has a working website, however their LinkedIn page is still available to the public.[15] Their former website, LiveWell.com, is no longer affiliated with Live Well Financial, and now serves as an educational resource with financial literacy articles.[16]
Criminal trial
editIn April 2021, Live Well CEO Michael Hild was tried in a federal court on five counts of fraud: one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire and bank fraud, one count of securities fraud, one count of wire fraud and one count of bank fraud. The SEC charged Hild of fraudulently inflating the value of Live Well’s portfolio of bonds to convince lenders to loan more money to Live Well.[4][17] Eric Rohr, who was Live Well Financial’s CFO from 2008 to late 2018, and Darren Stumberger, Live Well's head trader from 2014 to March 2019, were also charged for their parts in the alleged counts of fraud. In a parallel action, the U.S. District Court for the Southern District of New York filed criminal charges against Hild, Rohr, and Stumberger.[17]
Hild was sentenced to 44 months in prison.[18] As of March 2023[update], he is seeking an appeal, contending that his representation in this case was unable to give him proper legal counsel. He has been granted bail pending the outcome of his appeal.[18] Stumberger and Rohr both pleaded guilty to all five criminal counts.[4] Eric Rohr was sentenced to time served and three years of supervised release, a relatively light sentence, for his cooperation in the trial.[19]
Scope
editThe company originated FHA Insured HECM reverse mortgages, FHA single-family loans, Ginnie Mae HMBS and MBS mortgages, and Fannie Mae conforming loans.[2][7][9] LWF was HUD approved in 81 geographical areas.[20] LWF had approximately 300 employees, including loan officers, account executives, and support personnel.[21]
LWF was vertically integrated, with a full complement of products and business lines including origination, servicing, and investment management. Live Well Financial was licensed in 46 states with a full suite of regulatory approvals including HUD, FHA, GNMA, and FNMA.[2][1][8]
References
edit- ^ a b "NMLS Consumer Access". Retrieved 1 April 2016.
- ^ a b c d e "Lender List". Retrieved 1 April 2016.
- ^ "Former CEO Of Live Well Financial Charged In $140 Million Bond Fraud Scheme". www.justice.gov. 29 August 2019. Retrieved 9 October 2019.
- ^ a b c d e From, staff reports (2023-01-31). "Michael Hild, former Live Well Financial CEO, sentenced to 44-month prison term". Richmond Times-Dispatch. Archived from the original on 4 October 2023. Retrieved 2023-10-04.
- ^ "Getting to Know: Michael C. Hild". Richmond Times Dispatch. March 26, 2015. Archived from the original on 16 March 2017. Retrieved 1 April 2016.
- ^ "SEC.gov | Live Well Financial, Inc., Michael C. Hild, Eric Rohr, and Darren Stumberger". www.sec.gov. Retrieved 2023-10-06.
- ^ a b "Desktop Originator Sponsoring Lenders". Fannie Mae. Retrieved 1 April 2016.
- ^ a b Ecker, Elizabeth (31 January 2012). "After 3-Year Wait, Live Well Gets GNMA HMBS Approval". Reverse Mortgage Daily. Retrieved 1 April 2016.
- ^ a b "Approved Single-Family Issuers". Ginnie Mae. Retrieved 1 April 2016.
- ^ Oliva, Jason (25 November 2013). "ReverseVision Adds Live Well, Mason-McDuffie to Lender Roster". Reverse Mortgage Daily. Retrieved 1 April 2016.
- ^ "Live Well Financial Acquires Asset Portfolio & Hires NYC based Trading Desk Team". Richmond BizSense. 9 September 2014. Retrieved 1 April 2016.
- ^ Hazard, Carol. "From mortgages to oysters, Michael Hild is a builder of businesses". Richmond Times Dispatch. Retrieved 1 April 2016.
- ^ "Consolidated Data History". Ginnie Mae. Retrieved 1 April 2016.
- ^ Fernandes, Megan (20 May 2019). "Live Well Financial ceases operations". bizjournals. Retrieved 17 December 2020.
- ^ "Live Well Financial | LinkedIn". www.linkedin.com. Retrieved 2023-10-06.
- ^ "Home". Livewell. Retrieved 2023-10-06.
- ^ a b "SEC.gov | Live Well Financial, Inc., Michael C. Hild, Eric Rohr, and Darren Stumberger". www.sec.gov. Retrieved 2023-10-04.
- ^ a b Crow, Chris (12 May 2023). "Former Live Well CEO Hild granted bail as appeals process plays out". Reverse Mortgage Daily.
- ^ Krechevsky, David (12 May 2023). "Former Live Well CFO Avoids Prison". National Mortgage Professional.
- ^ U.S. Department of Housing and Urban Development. "Lender: LIVE WELL FINANCIAL INC". Lender AAFB Data. Retrieved 1 April 2016.
- ^ Hazard, Carol. "Chesterfield-based Live Well Financial to add 120 jobs". Richmond Times Dispatch. Retrieved 1 April 2016.