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The AARP Foundation announced it has joined a proposed class action lawsuit against Compu-Link (Celink), the nation’s largest reverse mortgage subservicer, and Reverse Mortgage Funding (RMF), formerly the largest reverse mortgage servicer nationwide.

The case was filed by Tusa P.C. and Giskan, Solotaroff & Anderson, LLP on behalf of Sheila Dancy-Wilkins and her mother, Flora Mayweathers, age 93, and a nationwide class of similarly situated homeowners, in the Eastern District of New York. According to the suit, the plaintiffs secured a HUD-approved reverse mortgage (HECM), but after RMF acquired their loan and hired Celink, both companies allegedly added unlawful fees for appraisals, inspections, property preservation, and attorneys’ fees or costs.

The lawsuit claimed Celink and RMF did not provide the required notices before filing a foreclosure lawsuit. The foreclosure was eventually dismissed, but not before the allegedly unlawful fees were added to plaintiffs’ reverse mortgage loan. The complaint also alleged the companies continued to charge extra interest and fees on that wrongfully inflated loan balance every month.

“Older homeowners worked hard to pay their mortgages. When they borrow from their home equity so they can age in place, they deserve fair treatment and protection,” said William Alvarado Rivera, senior vice president of litigation for AARP Foundation. “Protecting the home equity of vulnerable older homeowners from deceptive and unfair practices is one of AARP Foundation’s strategic priorities.”