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     | Monday, April 02, 2001 - 04:52 pm  Hi Christine, sorry it took me so long to fire up the ‘puter, a nasty flu bug the kids brought home had me down for the count. Really, you appreciate my postings? LOL, I was worried I was too wordy and boring you with all the minutia on this mortgage drama. I appreciate having a place to post where there’s consumer advocating minds to bounce my thoughts off of. I was laughing when I read your post, though it’s not funny that I’m just now figuring out what POC means, I found the disclosures that I should have received when I signed papers online, HUD’s settlement costs and helpful information brochure for buying a house http://www.hud.gov/fha/sfh/res/stcosts.pdf and for ARM’s, the consumer guidebook to adjustable rate mortgages at http://www.hsh.com/pamphlets/consarm.html. The most consumer directed sight I’ve found to date is http://www.hsh.com and they’re library at http://www.hsh.com/library.htm Thought I’d share the links in case some other weary surfer happens this way. The problem is, with the disclosure requirements, when they aren’t provided, there’s no penalties. This is about when I started humming God Bless America, LOL, there’s no incentive for a broker who’s processing your loan to be upfront, he’s just passing you on. RESPA only has substantial penalties associated with the kickbacks but it doesn’t make it easy for individuals to pursue enforcement. Hopefully, the Arizona State Department of Banking imposes penalties. I’m thinking a one-page disclosure or checklist would be a good thing. What IS the big deal in providing the information anyway? That's a bad thing? No ethics in business is the problem, says me. The appraiser gave us a few good days of grief, she insists we are solely responsible for the appraisal fees, and while I didn’t mean to imply in my previous posting that I’d paid those appraisals directly, I do feel as though with all that was packed and hidden and added into those loans, I’ve paid for those appraisals over and over and over. My thinking on this of late has been, why are they asking for payment outside of the closing/settlement process anyway and without the closing agent? Those federally required forms and line items are one of the few protections adhered to, it doesn’t seem right to me, that even if an up and up mistake was made at closing, that the way to properly and legally rectify it is outside and around those same closing documents. Hmmmmm, lots of skirting around the limited federal requirements. Skirting on the fringes even! I read your link on your experiences with filing complaints and again am humming God Bless America. I’m not hopeful that I’ll get any more of a response than you did, but I do feel that's were I gotta start. It will be a clean paper trail and accumulation of documents for a real estate/contract attorney to review. The only good thing, if there is a good thing, is that, had we not been contacted about the appraisal fees, I wouldn’t have been surfing and found any of this information, I wouldn’t have found your site either, and I do appreciate having a place to post and gather information, it serves as motivation and encouragement too! The story goes with predatory loans is that in 2 years when you think you can refinance at a better rate with improved credit, you typically and practically can’t! This is when people start finding themselves in foreclosure, as plotted by the lender all along. Since I know the plot, I can take steps now to ensure that won’t be where we end up. Which reminds me, with a bankruptcy discharged and showing on credit reports for 7/10 years, is it even possible to have A-grade paper? I may have to change my to-do list, is it possible to get out of the sub-prime market if that’s your only derogatory? I had a heart attack and we subsequently filed for chapter 13 bankruptcy in 1998 at 100% repayment, not that it matters whether it was 100% or not, but it makes me feel better to type it. The pay-off on 2/26/01 was $3,300.00, we’re still waiting for the final papers from the court, but that’s done with. Sent a copy of the following letter to Chad with complaints to: Calcus and US Capital, in all there variants. Better Business Bureau of Phoenix, with complaint (yep, they were listed as members) AZ Association of Mortgage Brokers, with complaint National Association of Mortgage Brokers AZ State Banking Department, with complaint. New Century Mortgage with complaint I’ll start working first thing in the morning on posting each of the separate complaints under the subtopic button. Attachments: AZ Association of Mortgage Brokers, Standards of Practice AZ Association of Mortgage Brokers, Code of Ethics National Association of Mortgage Brokers, Model Disclosure Form National Association of Mortgage Brokers, Best Business Practices National Association of Mortgage Brokers, Code of Ethics New Century Mortgage, Broker Code of Conduct New Century Mortgage, Broker Fair Lending, 2 pages of 28, Initial Disclosures and Conclusion, entire training book available online New Century Mortgage, Fair Lending, complaint, pages 9 and 10 of 23 Predatory Loan Problems and Their Solutions, National Consumer Law Center Next up will be the AZ State Attorney General’s Office, they don’t accept complaints until you’ve pursued all possible remedies at the bottom first, then onto the federal level, and finally I should have quite a few boxes on documentation for an attorney to review. Dear Chad: The application and good faith estimate we signed on January 27, 2001, was for a $90,000 loan on our primary residence and $50,000 on our rental property; both were to be 30-year fixed rate loans; 10.7% interest. At closing on February 23, 2001, the loan amount on the rental property was increased to $58,000. Additionally, you will recall that at the application signing, when we indicated that we didn’t want to alter the mortgage on the rental property because there were only 10 years remaining on the loan, you convinced us to do so by retrieving a calculator. Adding the lower monthly mortgage payment realized by refinancing, with an additional $250.00 per month toward the principal, (the amount of our chapter 13 payment that would be paid-off at loan closing), resulting in the property being completely paid off in 8 years. At closing (February 23rd – Rental Property, February 26th – Primary Residence), both loans were processed as adjustable rate mortgages with substantial pre-payment penalties. The application and good faith estimate we signed was for a 2.00% loan origination fee on each loan. At closing, the loan origination fee for each loan was increased by .5%, paid to US Capital. The application and good faith estimate we signed indicated a broker’s fee of $500.00 together with the loan origination fee of 2.00 points for each loan. At closing, not only was the loan origination fee increased for each loan but a "yield spread premium" was disbursed, in the amount of 2 additional points for each loan. Further, a review of the documentation available online at New Century Mortgage’s website indicates that no "rebate" is payable without inclusion of a pre-payment penalty; in fact, there is a buy-out option of the pre-payment penalty. We absolutely should have had the right to be informed of this option and to consider exercising it! By denying us the knowledge, you ensured additional payment from the lender in the amount of 2 points on each loan. US Capital was paid 2.50 points in origination fees on each loan, 2.00 points as a "yield spread premium," "rebate," "hush money," for each loan, and an additional $695.00 processing fee for each loan, this is in addition to processing, underwriting and document fees charged by New Century. We were not consulted regarding these modifications to our contract and we certainly signed nothing; we were not provided with the required federal disclosures. We believe it is highly unethical that such broad and substantial changes could be made to the terms of both our loans without us having been advised nor consulted in any manner. Further, all indications reveal that these tactics are indicative of predatory lending! We find it unconsciable that you are now attempting to collect from us, outside of the legal settlement process, appraisal fees that we are now told were not paid from the loan proceeds at the time of closing, in the increased amount of $800.00, and request that US Capital pay these fees. Sincerely,
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| | Monday, April 02, 2001 - 05:25 pm Irene, On top of all this it looks as though you may have been eligible for an FHA loan EVEN THOGUH YOU WERE IN A CH13. This loan would have been between 7-8% fixed with no PPP. FOR ANYONE ELSE IN THIS SITUATION, PLEASE EXPLORE THIS OPTION!! Check out http://www.hud.gov for more information on FHA loans.
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| | Monday, April 02, 2001 - 10:30 pm Irene, I really DO appreciate your postings, can't wait for the results of your complaints. Hope you're feeling better, knock on wood, I haven't had the flu EVER? It's definitely been so long I can't remember it. I highly recommend that you DO look into getting an FHA loan. If you are qualified your broker should at the very least refinance your loan at NO charge and pay all fees, including prepayment penalties. Well, that's MY opinion. Which reminds me, with a bankruptcy discharged and showing on credit reports for 7/10 years, is it even possible to have A-grade paper? I'm sorry to hear about your Ch. 13, wished you had discharged. You definitely need to check your credit reports. Start by reading Improving your credit scores and reading the credit pages at bayhouse.com. Making sure that everything is correctly reported and re-establishing REPORTED credit is the key.
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