Has your loan ever been sold? Well you better review your balance if Virtual Bank sold your loan.
As a direct instruction from the CEO and CFO of Virtual Bank they are keeping any and all principal reductions that are not scheduled to the new servicer. I quote the CEO, "if the borrower pays additional principal, keep in in a receivable for six months, if the new servicer does not invoice us, we will book it to income". Only after the OTS (the industry which over sees banking) noticed the violation did the CEO change his mind. His word exactly were "I know what I said, but you as management should have challenged me".
The new policy is to keep the principal for 30 days then send it to the new bank. This impacts the interest paid at the new servicer and is poor ethics.
When you get your next mortgage, ask the broker who the bank is, if they say Lydian or Virtual, run. You are 100% guaranteed to be sold in 30 days. And, do not pay extra to principal with your last payment. Did I mention they make 1-2% on the principal balnce sold?
Did I also mention they love Option Arm loans, you know the ones where the borrower rolls the negative interest into the principal balance? Senior management is aware the brokers are lying to the customers - and they plan to nothing about it, less sending a brochure to them detailing the options.
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