Just another victum of select portfolio. While not having troubles like most of what i have read here i think ours are just begining. We bought our home 2 years ago at a fixed rate of 7.5 for 2 years going to a variable rate after 2 years.
Our original motgage co sold our mortgage to select. Our contract states that we cannot go under 7.5 not over 10.5 at the first review and only by 1 point at each 6mo review not to exceed 13.5 as a cap. We trusted that any increase would be a result of the market at the time of the review. Just recieved a letter stating that our rate effective nov 1st our rate would increase to 10.5 the currant rate in the market is falling and i believe prime is 6.5 at this writting.
According to my understanding of what we agreed to i do not believe we should have a increase at this reveiew certainly not 3 points. Our credit status is better now than when we bought the house being close to the 7 rated as pretty good. Have not been late or missed a payment, many made long before due date the same as all our bills. I contacted select about this and was baisicly told that its going to 10.5 because they can regardless of the lower rates now in effect.
It is my expectation that they will raise 1 point every review untill they get to the cap of 13.5 regarless of the market or our credit standing. They made it clear they do not care Clearly they don't play fair and are preditory lenders.
Do not do buisness with this company and as we have found out check out all lenders for other names they operate under this is all a clear indication of the sad state this country is coming to that companys can operate in this manner. Where is consumer protection and laws to protect us from these greedy and heartless lending intitutions?
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