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Resource CenterHere is a link to National Mortgage Lenders we recommend for being fair and honest. Honest Mortgage Lenders
The National Mortgage Complaint Center Wants To Team Up With Actual Law Firms To Assist Homeowners With Loan Modifications and Foreclosures According to the National Mortgage Complaint Center, "the Internet, TV and radio are filled with groups offering to do loan modifications or save a homeowner from foreclosure. There is one slight problem -- typically these are not actual law firms; more often than not, these groups are schemers trying to bilk a homeowner one last time, before they lose their home." The group says, "there will be record numbers of foreclosures in 2009 and 2010 and we want to create a list, to be posted on our web site, of actual law firms in each state that actually have the ability to assist a homeowners facing foreclosure." For more information law firms with a real estate, consumer or bankruptcy practice should call the National Mortgage Complaint Center at 866-714-6466, or contact the group via its web site at Http://NationalMortgageComplaintCenter.Com. (PRWEB) June 22, 2009 -- The National Mortgage Center is one of the most quoted sources in the US on predatory mortgage lending and the group is initiating a campaign to list real law firms on its web site, in order to get real help for homeowners needing a loan modification, or foreclosure assistance, in each US State. The group is saying, "we are sick and tired of the phony TV ads, the misleading radio commercials, and the fraudulent web sites, offering loan modifications, and/or foreclosure relief from non attorneys. We want to put an end to this by listing real attorneys or law firms in each state that actually have the ability to assist consumers with loan modifications and/or foreclosures." For more information, lawyers or law firms that have a practice area in real estate, foreclosures, bankruptcy, or short sales should contact the National Mortgage Complaint Center at 866-714-6466, or contact the group via its web site at Http://NationalMortgageComplaintCenter.Com.
From a credibility standpoint, the National Mortgage Complaint Center actually has been featured on CNN, NPR, or in Newsweek Magazine, Money Magazine, the Wall Street Journal, Good Housekeeping Magazine, CNN Money, The Los Angeles Times (As The Good Watchdog), CBS Market Watch, and numerous other publications. According to the group, "we expect the 2009 and 2010 foreclosure situation to get worse, and we need real attorneys or law firms to help these people." For more information law firms or attorneys can contact the National Mortgage Complaint Center at 866-714-6466, or contact the group via its web site at Http://NationalMortgageComplaintCenter.Com.
According to the National Mortgage Complaint Center, "we want to put the phonies out of business; we intend to list attorneys or law firms in each state that have the proper skill sets to help homeowners with mortgage or foreclosure issues, and we will do weekly press releases for years to make sure consumers in their state know where to go or how to get help. The group will allow no more than two law firms in each state to participate; this initiative is based on first come, first come, first serve, and its intent is to really get some help for homeowners in what could be the worst mess of their life. The cost for participation is $425 for a law firm, and the law firm must be based in the state it offers the foreclosure, loan modification, bankruptcy law, or short sale assistance. For more information law firms that specialize in real estate law, bankruptcy law, foreclosures, short sales, or consumer law should contact the National Mortgage Complaint Center at 866-714-6466, or contact the group at its web site at Http://NationalMortgageComplaintCenter.Com.
If a real estate professional or law firm knows of a colleague with these specialties, please share this press release with them. Americas Watchdog Wants To Talk With Countrywide and Washington Mutual Employees About Loan Serving Practices
Consumer Advocates Disclose the Yield Spread Premium Kick Back on MortgagesRISMEDIA, Jan. 8, 2008-For the last four years Americas Watchdog has been vocal about double standards that exist in the U.S. mortgage industry. Because of these double standards, Americas Watchdog estimates that 9 out of 10 current U.S. homeowners pay a higher monthly mortgage payment than what they could have, or should have received when they financed or refinanced their home. A “yield spread premium” is a kick back that banks or mortgage lenders receive for inflating a consumer’s interest rate on a home loan. According to Americas Watchdog, “mortgage brokers have to disclose this kickback to consumers, but banks and mortgage bankers are exempt from this disclosure requirement”. Also known as a rebate; according to Americas Watchdog, “yield spread premiums have a whole lot to do with the current US real estate disaster. Had U.S. consumers actually been able to see what their bank, or mortgage banker was making off their mortgage transaction, or how much it increased their monthly mortgage payment, most consumers never would have agreed to do the mortgage in the first place.” According to Americas Watchdog and its National Mortgage Complaint Center, “the U.S. Congress and consecutive White House Administrations have failed to require banks, mortgage bankers and home builders to disclose the yield spread premium kick back, because these business groups are some of the largest campaign donors to members of Congress, the U.S. Senate, and consecutive White House Administrations”. Americas Watchdog added, “if most citizens want to know why we have an epic real estate disaster in the U.S., one needs look no further than Washington D.C. and an army of paid lobbyists to see how it happened”. Americas Watchdog went on to say, “Wall Street is also complicit in the U.S. mortgage disaster because most of the biggest investment bankers, and financial advisers sold US pension funds garbage mortgage loan portfolios, that now could literally bankrupt many of our nation’s pension funds.” So how bad is the mortgage yield spread premium kick back issue? According to the National Mortgage Complaint Center, “it’s so bad that only 1 out of 100 consumers even know what it is. Even worse, on mortgage broker transactions, where the broker is required to disclose the yield spread premium kick back, only 2 percent of all consumers even know what it was, or how it affected their monthly mortgage payment.” On mortgage loans or refinances from a bank or mortgage banker there is no requirement to even disclose the kickback, even though like mortgage brokers, they get these kick backs too. Americas Watchdog’s President estimates “the average U.S. homeowner pays about $125 more per month, because a bank, mortgage banker or home builder failed to mention that they received thousands of dollars for inflating an unsuspecting consumer’s interest rate over the best interest rates available. In the end an unsuspecting consumer simply ends up with a much higher monthly mortgage payment”. So what immediate federal reforms are needed with respect to U.S mortgages/home loans? 1. Mortgage brokers, banks, mortgage bankers and home builders acting as mortgage lenders, should all be required to disclose to the consumer the yield spread premium kick back they are getting for inflating the borrowers interest rate, & what difference this will make in the borrowers monthly mortgage payment. 2. Banks, mortgage bankers and home builders acting as mortgage lenders should be required to disclose the “service release premium” (SRP) they get for selling a consumers mortgage to a loan servicer. A SRP is typically $1500 to $3000, and the home loan borrower should see this fee up front, in order to fully understand what the lender is actually making on the mortgage transaction. 3. According to the group, it should be illegal for banks, mortgage bankers or home builders to be set up phony title insurance companies, and then resell the title insurance policy to a title insurance company for pennies on the dollar. The National Mortgage Complaint Center has proof national home builders are deeply involved in this scheme. According to the group, “it’s an election year and voters need to see how their Congress person or US Senator participated in this disaster. A bribe from special interest group is still a bribe, and millions of U.S. homeowners have been cheated, gouged and many may now lose their home.” If a homeowner or home buyer intends to finance or refinance a home loan in 2008, the National Mortgage Complaint Center is encouraging all consumers to call its national toll free number for the name of a honest mortgage lender that can help them with a conventional, FHA or VA mortgage. For more information, visit http://HomeOwnersConsumerCenter.com.
2005 Taking Out The Garbage-San Francisco Chronicle July 2005
TAKING OUT THE
GARBAGE
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December 14, 2005 |
How to Prevent
Excessive Loan Fees
by Lew Sichelman
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Whether you are looking to finance a new house or refinance the one you're already in, you can protect yourself from being overcharged by following this list of "dos and don'ts" from the National Mortgage Complaint Center, a for-profit company which inspects loan documents for unnecessary and duplicative lender fees prior to closing. Do: Check out any lender with whom you are considering doing business. Check with your local better business bureau, consumer affairs agency and the state agency which supervises the mortgage business. Find out if any complaints have been lodged against them, the nature of the complaints and how they were resolved. Ask each lender to give you a quote that includes not only the interest rate but also all the fees associated with the mortgage. And make the request before allowing them to run your credit report. You should be honest about how good or bad your credit history is, but you should not have to pay for a credit report or anything else in advance of obtaining a quote and actually making a formal application for a mortgage. Remind the lender that he is required by law to provide a Truth in Lending statement and a Good Faith Estimate of your closing costs within three days of applying for the loan. Don't just remind the lender, though, but also inform him that you expect him to comply with these federal regulations. No excuses. Confirm in writing whether you will be paying the broker twice, once in the form of an origination fee and again in the form of a "yield spread premium." YSPs are back-end fees which are paid by the funding lender to the broker for landing customers willing to pay a higher interest rate. There are reasons why a borrower might be willing to pay more. You might want to roll the closing costs into the loan amount, for example, or you might want to borrow more than the house is actually worth. But you also have a right to know if the broker is double-dipping. According to Thomas Martin, president of the National Mortgage Complaint Center, "yield spread premiums are the number one source of overcharges in the mortgage industry." Also confirm whether or not the loan you are seeking comes with a prepayment penalty for paying off the mortgage early, typically within the first three years. If the lender is unwilling to make either of these two disclosures in writing, Martin strongly suggests that you "find another mortgage lender." Have NMCC or some other reliable but also independent third party review the loan documents for possible overcharges or unjustified fees. The complaint center charges $45 for a narrative report detailing the fees it finds excessive. Don't: Do not be swayed by slick TV and radio ads. Some may be from legitimate lenders, but many are from companies which act as nothing more than middlemen who charge lenders for sending them "leads." Do your own homework. According to Martin, "These middlemen frequently get huge fees for sending the borrower to the most expensive lenders, with the net result being, you end up paying more money." Do not be fooled by offers that sound too good to be true. If it sounds too good to be true, it usually isn't true at all. Do not sign any papers in which the blanks are not completely filled in or crossed out. And don't be talked into fibbing on your loan application by someone who says "everybody does it." It is illegal to falsify loan documents. Don't go with the builder's in-house lender just because it is convenient to do so. Compare what the builder is offering to the rates and fees other lenders charge. His may or may not be the best deal, and sometimes the builder will sweeten the pot to gain control over the entire transaction. But remember, builders who also act as lenders are earning the same fees -- or maybe higher fees -- that other lenders charge. Martin, who has reviewed thousands of transactions on behalf of borrowers, says some of the highest charges he's seen come from builders acting as mortgage brokers. Do not allow yourself to be forced into closing the loan if you don't understand all the terms or if the terms don't match what you were told in the beginning. Give yourself some leeway – at least several days – between closing on the mortgage and moving into the new house so that if something isn't satisfactory, you won't be stuck with a loaded moving van and a car full of screaming kids waiting to get into their new digs. Realize that both the lender and the seller have just as much incentive to close as you do. So if something isn't right, stick to your guns. Make one of them flinch first. |
Homeowners Beware Of TV/Internet Mortgage Services and National Mortgage Referral Services (Press Release)
by Mike Adams, the Health Ranger,
NaturalNews Editor
According to a just released report
by the National Mortgage Complaint
Center, homeowners wishing to
finance or refinance their homes
should consider steering clear of
any mortgage service/mortgage
referral service that promotes
itself on TV or the Internet as a
way to get mortgage firms to fight
for their business, or as your
helpful way to "get rid of debts or
credit card bills".
According to the report, in the vast majotity of cases inspected, the lenders that would fight each other to give the homeowner "the best possible deal", were in many cases the very same lenders that have a reputation for gouging or over charging consumers nationwide (one lender that came up very often as a "competitive lender" is under investigation by numerous state attorney general's for gouging consumers). According to Thomas Martin, President of the National Mortgage Complaint Center, "this could be the biggest case of individual or massive fraud in US History, because the homeowner does not know who/what they are dealing with. In many to most cases studied, the Internet mortgage lender/ mortgage referral service appeared to be getting the most money out of the homeowner in fees, or in excessive interest rates". As a solution Martin suggested, "keep it local, deal with people you know, or deal with companies that have been around for a while".
Martin went onto say that his "biggest worry is mortgage firms promoting exotic interest only mortgage products that have starting interest rates as low as 1.5 percent to 2 percent", "or mortgage firms that charge excessive interest rates using the excuse that its better than paying for a huge credit card bill". "At some point reality will set in, and homeowners will realize that they received a mortgage interest rate that was much higher than what they deserved/could have received, the homeowner will realize that the mortgage lender's fees were excessive, and or the homeowner will be put in a position; no longer able to afford his/her mortgage payments". As a result Martin predicts a huge new wave of forclosures starting sometime early next year. While Martin claimed to have identified a few honest companies on the Internet/TV, he indicated that the majority should not be trusted with something as important as a home loan or the largest financial transaction in a typical persons life. At the same time Martin pointed out, "without federal laws that level the disclosure playing field between Mortgage Brokers & Mortgage Bankers regarding a kickback scheme called a yield spread premium", "the consumers have no chance of getting a fair or fully discosed deal". Currently banks and mortgage bankers are not required to disclose a kick back for increasing the borrowers interest rate, while mortgage brokers must disclose it. Martin attributes this un-even playing field to campaign "contributions" from banks & mortgage bankers to the US House & Senate Banking Committee Members along with the current and previous federal administrations.
Martin indicated; "most disturbing of all; the working class, the elderly and or minority groups are the most vulnerable to the Internet mortgage referal service or TV ads that say "we can help you", or "we can send you $10,000 right away to pay off your debts", or "we can get 25,000 banks to fight to the death over your mortgage". According to Martin it would be more correct for these lenders or mortgage referral services to say; "Call us so we can help ourselves to your home's equity, or call us so we or our friends can rob you blind". Martin also expressed a deep concern that these same types of companies force appraisers to come up with unrealistic valuations to qualify a medium, or low income borrower, for a home loan they cannot afford. Martin described this type of appraisal fraud as a "train wreck waiting to happen", and he indicates inflated appraisals are happening at historic levels nationwide.
If you think you have been a victim of being gouged in an TV/Internet mortgage transaction or by a mortgage referral service you should contact the National Mortgage Complaint Center for a thorough review of your documents. The National Mortgage Complaint Center web site is located at http://NationalMortgageComplaintCenter.Com/.
If you have information as a current or former employee of a mortgage origination TV/Internet operation or a mortgage referral service that took advantage of consumers, or if you are an employee of an appraisal service that was forced to provide false valuations on bank or a mortgage lender's orders, you are also encouraged to contact the National Mortgage Complaint Center.
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2004---Mortgage Bait & Switch
Borrowers Beware Of Bait & Switch
According to the National Mortgage Complaint Center, the number of fraud cases in the mortgage has increased over the recent years. Mortgage companies have been using false documents and getting them signed by borrowers. Many of them have even charged high interest rates and borrowers have been making such high interest payments due to lack of awareness on recent market trends.
It is found out that an average homeowner in the United States has to pay $1250 more in sub-prime mortgage industry. Sub-rime mortgage are offered to high risk borrowers who may have been rejected by other lenders. In recent years this industry has seen a considerable growth with a lot of consumers getting qualified for this loan. Consumers who face difficulty with the credit market are generally availing this loan. But, this growth has simultaneously given rise to predatory lending affecting the most vulnerable lenders. This kind of abusive lending is generally directed to the lower income and minority borrowers. Generally the elderly homeowners with reduced incomes become the target of these sub-prime home equity lenders as they often have considerable amount of equity in their homes. The most harmful practice begins with a loan based on the home equity rather than on borrower's ability to repay. These borrowers often fail to repay and the lenders acquire the borrower's home equity and ultimately the borrower loses his home through foreclosure or by signing a deed to the lender in lieu of the foreclosure. There are some other kind of abusive practices which are illegal under various federal or state laws.
Considering the growing rate of predatory lending in the mortgage industry, the National Mortgage Complaint Center has decided to have an audit service for protecting homeowners from abusive lending practices. But borrowers should also be aware of such unlawful activities and keep themselves away from such lenders.
Borrowers should consider some preventive measures to protect themselves from predatory lenders. They should not go by the rates that lenders often advertise. These rates are in fact, much lower than the actual fees charged by such lenders. The lenders advertise such low rates just to lure consumers so that they can approach them for loans.
Borrowers should demand a written copy of the fees that they keep paying to the lender on a monthly basis. This is because lenders often provide an estimate of fees at closing and later they charge higher fees pretending that they have forgotten to include these charges. But keeping the proofs of such documents will help borrowers in case of any discrepancies in the mortgage process.
If there is a rise in rate in the market during the time period between the application and closing, the lenders charge higher rate to borrowers. On the other hand if the rate falls downwards, the lenders try to ignore it and the borrowers are deprived of the advantage of the lower rate. So, the borrowers should monitor the market during this period.
The borrowers should try to keep a track of all the documents involved during the process and ask for proper clarifications wherever they have a doubt. Going this way will minimize the problems of being cheated by the mortgage companies to some extent. The borrowers should try to consult an Attorney or a professional known to the borrower and get the documents verified by them.
PR
News Now
Consumer Alert Home
Builders Create Mortgage Monopoly Building
Standards Also Questioned
Newsweek
Money: Read the Fine
Print - Newsweek: Tip Sheet Money -
MSNBC.com
A
second set of eyes -
Closing-cost maze spawns document-review
services
Appraisal fraud: your
home at risk
The Los Angeles
Times
A good watchdog can take a bite out of
lender's junk fees
TAKING OUT THE GARBAGE
/ The average mortgage borrower pays $1250
...
American Mortgage Info
Mortgage SOS (Second
Opinion Service) Could Save Borrowers
Thousands on Home Loans
Mortgage Industry May
Owe Homeowners Billions For Overcharges.
Millions of U.S. homeowners have been
cheated or overcharged by mortgage lenders
when financing or refinancing their home a
new survey/study finds.
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Catherine Anderson, Attorney At Law |
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National Advocacy Group for Consumer Protection and Corporate Fair Play