Reverse mortgage lender gets tax break, fights allegations
Crain's Detroit Business, October 31st, 2007
A reverse mortgage lender has met one of its growth benchmarks by
creating 100 jobs in just four months, under a deal with the state for
$3.5 million in tax benefits.
But even as Melville, N.Y.-based
Vertical Lend Inc.
continues its growth in Troy and plans to add 60 jobs in January, the
company grapples with allegations of deceptive business practices and
use of unlicensed loan brokers in Massachusetts.
Vertical Lend, licensed to operate in 33 states and in the process of changing its name to
World Alliance Financial, obtained $3.5 million in tax incentives in April from the
Michigan Economic Growth Authority to locate a national office in Troy and create hundreds of jobs.
Last
week, the company announced it had created 100 jobs since opening its
Troy office in June. That qualifies the company for a $50,000 training
grant through the
Oakland County Department of Economic Development and Community Affairs, department Deputy Director Maureen Donohue Krauss said.
But
just two weeks before winning the local and state assistance for its
move to Michigan, Vertical Lend received an order from the
Massachusetts Division of Banks to
cease its lending activity in that state, based on results of a January
audit. A hearing is pending on the company's Massachusetts license.
Company
President and CEO David Peskin said the Troy operation has been using
the World Alliance Financial name, and all branches and offices will
convert to the new name by Dec. 1.
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