Kennedy v. WORLD ALLIANCE FINANCIAL CORP.

ORDER

Plaintiff brings several claims arising out of the process by which a reverse mortgage was placed on her home. Defendant moves to dismiss all claims against it. For the reasons discussed below, defendants’ motion is granted in part and denied in part.

I. BACKGROUND

Plaintiff Gertrude Kennedy (“plaintiff’ or “Kennedy”) is seeking rescission of a reverse mortgage agreement she entered into with defendant World Alliance Financial Corporation (“WAF”). At the time, plaintiff, a 71 year old widow, had an existing loan of $101,000 with a payment of $600 a month for her residence located in Vallejo, California.

Plaintiff alleges that on or before September 13, 2008, WAF’s agents solicited her through telephone and mail for a reverse mortgage materially misrepresenting the details of the mortgage with the intent to defraud her. (Pl.’s First Am. Compl. 2-5.) (“FAC”). Specifically, plaintiff alleges WAF’s agents represented that the reverse mortgage would “encumber her property for $300,000,” would allow her to take draws in the approximate amount of $150,000.00, and would relieve her from payments on her existing loan of $101,000.00. Id. at 2. Further, she alleges that she relied…