Forum
|
|
Forum
|
| Subtopic | Msgs | Last Updated | |
 | US Capital Mortgage | 3 | 04/02 10:30pm |
     | Thursday, March 29, 2001 - 08:35 am  This is the short version of my story...on 1/17/01 my husband and I were contacted by a mortgage broker regarding refinancing our properties; on 1/27/01 my husband and I traveled to Phoenix and signed paperwork with the same broker for the following: Primary residence, valued at $120,000, payoff of approx $66,000, cash-out with a new loan at $90,000, 10.7% interest, 30 year fixed-rate. The good faith estimate signed relates the same loan terms with a 2.00% loan origination fee, broker's fee of $500 and total estimated settlement charges of $5,263.34. There is a yeild spread premium of +/- 0-3% but there is no dollar value associated with the line item. The Truth in Lending Disclosure shows 10.7% annual percentage rate, $211,235.35 finance charge, $90,000 amount financed and $301,235.35 as Total of Payments; 359 payments at 836.75 and 1 payment at $842.10. Additionally we have a rental property next door to our primary residence, though I'd indicated we didn't want this refianced if possible, the mortgage broker said he'd ran these calculations for our information. Value of $90,000, pay-off approximately $36,000. Cash-out/home improvement loan of $50,000 at 10.7% interest, 30 year fixed amortization. The Good Faith Estimate indicates this same loan terms with a 2.00% loan origination fee, broker fee of $500, and the same yield spread premium as above, without an associated dollar amount, with total estimated settlement charges of $4,413.34. The Truth in Lending Disclosure indicates 10.7% annual percentage rate; $117,355.97 finance charge, $50,000 amount financed and $167,355.97 total of payments; 359 payments at 464.86 and 1 payment at $471.23. Loan closed for the rental property on 2/23/01 with an additional .5% included in the origination fee, yield spread of $1,160.00 noted, an actual pay-off amount of $37,083.30, and a loan amount of $58,000!!!!!! AND I now discover, this is an ARM, fixed for 2 years at 10.7% but maxes out at 17.5%!!!!! Total settlement charges of $4,828.66 that doesn't include the yield spread. Loan closed for our primary residence on 2/26/01, with an additional .5% included in the origination fee, yield spread of $1,800 noted, loan amount on this one is the same at $90,000 but it too is an ARM!!!!!!! and also maxes out at 17.5%!!!!!!!! Total settlement charges of $7,128.76 that also doesn't include the yield spread. We and our situation we're grossly taken advantage of! We were desperate when we signed the first set of closing documents and told we had no right to rescind as it wasn't our primary residence. We also had been told our loan would be closed within 2 weeks tops of having signed the papers, but by 2/23 we were beside ourselves buried and committed with no choice but to sign at that point, no doubt the rental property was pushed through first! The only indication we had of ARM interest rates was at the signing, the same is true for the additional .5% added to each of the loans, led to believe that the $500 stated was the brokers fee and figured out through surfing that is just not so. Besides being stupid and mortified and really mad at having not being able to walk away from these loans with my middle finger flying, the mortgage broker called last week that there was a mistake at settlement and the appraiser was not paid and has advised that the appraiser is coming to my house on Sunday (3 days to pick up a check), not for the $300 each per appraisal but for $800!!!!! Now I am seething mad, please advise as to whether this appraisal cost is our responsibility and where I can complain or find additional information about the lending process. I thought and trusted that what we'd signed for was what we were receiving, can a broker completely change the terms without telling or asking and you not even have a clue until you have to sign the documents??? And, the broker says he did me a huge favor driving the documents himself to the title company so we could sign and close within deadlines, but, this was no favor, we had less than 1/2 hour to get through both loan packages so he could get back to Phoenix and express them to the lender. I still don't have copies of all that I signed. Please help us if you can, I'm admitting to stupidity, idiocy more like it, is this a lesson I'm gonna have to pay for for the next 30 years? At 17.5% interest, it's a sure thing my family and I won't have a home, there's no way we can afford that payment, NONE. I understood an ARM to go up OR down based on national interest rates, the partial documentation I have seems to indicate that lower interest rates are not an option, regardless of the prevailing rate. Isn't there someone that has to advise about the reality of ARMS, or am I completely misunderstanding? The broker said we could refinance in 2 years if we aren't late on any payments, but I'm betting there's nothing to that effect in the loan documents! I have requested copies of complete loan packages for both properties from the mortgage company. What do I do about the appraisal fees, I understand this isn't the appraiser's problem but I don't think I should be the one paying the bill either?
|
| | Thursday, March 29, 2001 - 09:47 am Re. the appraisal: You didn't order the appraisals. I wouldn't pay. I'd tell the appraiser very honestly that I just got screwed by that broker. The broker should pay. The cost of the appraisals is excessive! Re. the loans: While I am in Arizona right now, I have no clue about AZ State regulations, my experience was in California. Your disclosures SHOULD state where you can file a complaint. I'd start by sending a copy of the posting to the broker and asking for an explanation. Fax works well and is fast. Also, I'd certainly post WHO that broker was, to at least warn other people. This happens every day, even in highly regulated California. Why does it happen? I'm sure you know that tune "Only in America ... land of opportunity ..." It doesn't matter whether the opportunity arises due to peoples' financial distress, medical problems, old age, WHATEVER! It's the American way. Have you read Transamerica? You can go public, you can complain, you can sue. If there's anything you're going to do about this, please keep us posted.
|
| | Thursday, March 29, 2001 - 03:51 pm Tell the Appraiser to collect from the broker. There is nothing they appraiser can do to you. It looks like the broker made 4.5 points on each deal. He can afford it. File a comlaint with: Arizona Association of Mortgage Brokers, Incorporated 331 N. First Ave. Suite 250 Phoenix, AZ 85003 Local: (602) 452-2910 Fax: (602) 452-2929 email: azamb@azamb.com http://www.azamb.com/ Call them and they can probably direct you to the proper state dept. as well. Also, call the BBB and fiel a complaint and what the heck. Send a letter to you News stations about beint taken advantage of. To get everybody going, mention the words, "Predatory Lending". That's the hot topic lately. Good luck.
|
| | Friday, March 30, 2001 - 08:23 am Christine, First let me say THANK YOU, your home page statement that this information isn't available is spot-on and I've found no other forum that openly and honestly addresses these types of issues in the consumer's favor! I found your site because I was surfing on credit repair, the real estate and broker info. was a perk and a BIG one! Just wish I'd done some surfing before the fact instead of after, heavy sigh on the live and learn hindsight :-(. APPRAISALS: I've told the appraiser that I was screwed, she's a buddy of the broker, seems their working relationship is that he sends all his applications to her for required appraising services. Until yesterday after surfing, I didn't know I had a choice about the appraiser that would be used. I learned A LOT yesterday! The appraisal fees were to be paid from the proceeds at closing, were they paid? I dunno, the settlement papers show they were, and they don't show $800 either! I paid an additional .5 on each loan that was slimed in at closing, more than covers the appraisal fees, and yep I DID pay for them! Excessive fees huh? what's a usual fee for a single-family appraisal, is it a set hourly rate? My husband and I have talked to both the broker and the appraiser, our faces our blue! They contend they've done us a huge favor. I took your advice and forwarded my posting to the broker, will see if he's anything to say in writing, I'll sure let you know if he does. His name, btw, is Chad Burgueno, US Capital Mortgage, located in Phoenix, Arizona. I hope any of those names would come up on a search. As well as the lender, New Century Finance. Have I read Transamerica? yes, just yesterday, OMGGGGGGGG, you said only in America, I say, this isn't the America we think it is! To add frosting to my short story, Transamerica sold to Household with Beneficial thrown in somehow is who my primary residence was financed through, think I've some additional information gathering to do because my dealings with them weren't as far along as the story you've documented, but the storyline doesn't change much. Why didn't I know these things, not once but twice now???? each of our properties have been acquired firstly through owner financed carry-backs and in retrospect, that's just where they should have stayed! Shame, shame, shame on us!!!! I swear we aren't dumb and un-educated people, not that it matters much at this point. What do I intend to do? go public, complain and I hope sue too! I'm guessing you must get a lot of questions asked without the follow-up required. I do intend to follow-up and will post next my intentions and what I've found out so far. The problem seems to be, as you well know, there doesn't seem to be consequences for the parties involved, oh, I've consequences and punishments for having signed the loans, but what about those that have been unscrupulous in their dealings with me? Yeah, we're back to only in America!
|
| | Friday, March 30, 2001 - 08:26 am "Your disclosures SHOULD state where you can file a complaint." Is there a magic piece of paper or papers I should have that says disclosures? How do I know if I even got them?
|
| | Friday, March 30, 2001 - 09:39 am What do I intend to do, here's my checklist so far: Find out everything that I can about the lending process, regulatory agencies, what should have happened, what didn't happen, and what options I have! Make sure that I've A paper credit in 2-years and figure out exactly what pre-payment penalties were hidden in my mortgages and what they mean in dollars and practical probabilities for re-financing. Figure out that ARM crap really quick! Get complete copies of loan documents and all that we signed at closing. Advise the appraiser that I’m not paying again for appraisals. Follow-up with a letter. Forward copy of posting to broker for a written response and hold breath (laughing). Forward copy of the same posting to the broker's boss. Via the internet, and thank GOD for it or I'd still haven't a clue, this is what I've found out so far: BROKER/COMPANY/LENDER: AZ Association of Mortgage Brokers (THANK YOU, Don) http://www.azamb.com/ lists US Capital Mortgage as a member, John Calhoun, US Capital Mortgage Corp., and Bill Marcus, US Capital, Inc. There’s an email link to John Calhoun, forwarding a letter to both! The site seems to represent the broker’s interest in transactions though there is a code of ethics and standards of conduct – forwarding a letter to the Association. Brokers in Arizona are required to be licensed by the Arizona State Banking Department ARIZONA STATE BANKING there’s a search feature that takes over an hour to download and the names and companies are listed in such a way that creative searching is needed to find what you are looking for. Calcus, Inc. (note the creative use of combined last names there) has the same address as the broker, the senior loan officer says the business card, what’s the difference between a "Senior Loan Officer" and a "Broker"? US Capital Mortgage is listed as a dba of Calcus, Inc. There’s no specific listing for Chad, though he’s a MB number listed on his business card. Is there a location to search by number or does he operate under a business number? I can’t quite figure out this relationship and hierarchy of business names. Interesting, both of these men are listed at a different address than the broker. The licensing agency requires notification of address changes and annual license renewal. Will surf online address books and find out what comes up for the varied addresses that are all part of the same place and follow-up with listed complaint procedure. Since the business is incorporated there should be additional information online through SEC Filings, will research this further. CONSUMER LENDER LICENSE\AZ Revised Statutes, Title 6, Banks and Finan. Inst., Chap 5, Consumer Loans, Art.1, ARS 6.601 thru 6.675 www.azleg.state.az.us/ and Title 6, Chapter 9, Article 2, 6.941 US Capital Mortgage is listed as being online but the site has been disabled. New Century http://www.newcentury.com has online rate sheets, matrix, code of conduct and requirements for brokers, will follow-up with this and send complaint. The FICO matrix shows programs by score and programs available by credit grade, though Chad told me this information wasn’t available (the sky is parting)! Interesting that the rate sheet says there are no add-ons and that broker’s don’t receive a rebate without a pre-payment penalty included! There’s an option for buying with points the pre-payment too, how come I didn’t know that?
|
| | Friday, March 30, 2001 - 10:12 am Hi Don, thanks for responding! I hope you read that I did follow up on the AZ Association of Mortgage Brokers link and will follow-up with the Better Business Bureau as well. 4.5 points each, nodding, that’s how I calculated too, I’ve another question please, if you can answer, the final closing document shows: There's 2 columns for the two loans, sorry I can't get this to post in straight columns. Loan origination fee 2.5% to US Capital Mort 1,450.00 2,250.00 Processing fee to New Century Mortgage 300.00 300.00 Tax Service Fee to New Century Mortgage 76.00 76.00 Flood Certification Fee to New Century Mortgage 14.00 14.00 **See attached for breakdown 1,245.00 1,245.00 Yield Spread premium to US Capital Mortgage (1,160.00) (1,800.00) The Yield Spread was listed in parens to the left of the paid from boxes. **Attachment: Underwriting Fee to New Century Mortgage 300.00 300.00 Document Preparation Fee to New Century Mortgage 250.00 250.00 Processing Fee to US Capital Mortgage 695.00 695.00 The balance of items itemized are interest, insurance, title charges, recording fee and taxes, the total settlement charges for each were: 4,828.66 7,128.76 My question is, I’ve been surfing on "predatory lending" as you suggested, and a big THANK YOU to you for that, how come there’s so many processing and underwriting fees???? Those aren’t includedas part of the points? Or are these duplicate charges for the same thing? Also, on the 2nd loan only an Appraisal fee to US Capital Mortgage, listed in parens to the left of the columns as well ($400.00 POC).
|
| | Friday, March 30, 2001 - 12:06 pm Sassy, sure appreciate your postings! Re. appraisals: POC means "Paid Outside Closing," so you didn't pay for them. The only good news so far! What should appraisals cost? In the late 90s I paid $250 to $300 for homes below $400K in the high priced San Francisco area. When a borrower had TWO properties, especially in the same neighborhood, I got discount. I worked with several appraisers and prices depended a little on demand and whether it was a RUSH order. Because I had few or no agents, I wasn't able to get volume discounts like the big outfits with 20 or 50 agents. I don't know what's customary in AZ, but considering the lower cost of living and doing business, I consider $800 for 2 appraisals excessive. Disclosures I think it was a separate piece of paper in California and I can't even remember if they were State or Federal requirements . The Department of Banking would know for sure. Re your broker and loans: I can't say what rate you should have gotten since I don't have your credit and loan package, but it sure looks like you've been taken big time. Regarding the Mortgage Broker Associations: "By brokers FOR brokers." I found out that the California Mortgage Broker Association referred all complaints about violations of their Code of Ethics to the Department of Real Estate. Real Estate and Mortgage Definitions contains some of my experiences with regulatory agencies and professional organizations. I hope you complain to the Arizona Mortgage Broker Association and let us know how THEY respond. I'd like to add some more CURRENT info to Definitions page. Of course you also want to complain to the Department of Banking. You ** could ** try sending your complaint to HUD, and maybe you'll have more luck than I had. I still don't understand how 3 certified mailings could get lost ... I just added the "Create subtopic" button to the top of this page. It would be great if you'd post complaints and the subsequent results in separate subtopics, makes it easier to track. Sometimes you also get better results when businesses know that they're getting publicity. It would be interesting to see if you broker cares. I learned that ENFORCEMENT barely existed in California. Hopefully we'll all get to see how this works in Arizona.
|
| | Monday, April 02, 2001 - 05:17 pm I correct myself, it looks as though this broker actually made closer to 5.5 points with their little processing fee stuck in the closing costs. The New Century Fees don't bother me as much as they seem pretty typical at least for them. I do have to ask one question though and maybe i missed it above. Why did you close? You could have walked away from both of these loans. Though this definately looks like a bait and switch, you still could have said no. You should also file a complaint with the Arizona banking dept. Just mention the word, victimized and predatory lending and your going to get somebody's attention. You could also email or write to these organizations. Links Atlanta Legal Aid Society (http://www.law.emory.edu/PI/ALAS/) AARP Home Equity Information (http://www.aarp.org/hecc/home.html) Center for Community Self Help (http://www.selfhelp.org/) National Consumer Law Center (http://www.consumerlaw.org) Coalition for Responsible Lending (http://www.responsiblelending.org) Consumer Federation of America (http://www.consumerfed.org) Consumers Union (http://www.consumersunion.org) National Association of Attorneys General (http://www.naag.org) A group that I've become involved in is against what just happened to you. We are working on ways to eliminate these types of brokers. Anybody interested may want to visit a site called http://www.mtgprofessor.com I think you'll find some good information if you looking for a loan to purchase or refi.
|
Credit Forum CreditCourt Forum 2003 Credit Suit CreditFactors Order Credit Reports |