It is a low down dirty shame of how the Mortgage companies these days are operating.instead of being "customer motivated" they are "commission/bonus motivated." The days of honest business, good ethical conduct, professionalism has taken it's place among the "endangered species."
I can relate to Upset for being very unhappy to what are being done to the senior citizens of this country. The same individuals that help build this nation to it's God-Blessed glory... Are the ones whose homes are being "rushed to foreclosures, were levied excessive and unreasonable fees for settlement services.
And it appears that they also marks up fees charges for services provided by third party (ies) as all part of the mortgage settlement process. There has been plethora of homes appraised higher than the SEV (State Equalized Value) than expected.
My question implies to my mother. How is it that she went from a mortgage of $11,478.78 in 1993 to over $70,000.00 in only thirteen years??? A real example: In 2002 her mortgage was with Traveler's Bank and Trust for $44,471.63.in 2003 she refinanced with Harbor Financial and her new mortgage was $63,000.00. Then her mortgage was bought by Argent Mortgage Company in the same year which her mortgage was still $63,000.00. The Ameriquest bought the servicing rights in the same year 2003 and her Mortgage was $62,000.00. Being disenchanted and poor service by Ameriquest, she refinanced with Hamilton Mortgage in 2004.
The mortgage with Hamilton Mortgage was $70.550.00. This is how it went down. My mother wanted to do a complete consolidation with a cash out of $1,000.00 on a fixed term. So the numbers were crunched and these terms were possible for a loan. An new loan originator that we worked with wasn an individual who we will call Toddy.
There were a few calls exchanged to iron out the details. On May 31 I drove my mother and to the brand new Portage office to sign the papers. I looked over them and realized there was something not right. Upon hearing this Toddy immediately went into the "scare tactic" mode of reminding my mother that she couldn't get another loan right away from anybody else but there are pending bills that can be taken care of right now. I asked Toddy to leave us alone to discuss this.
I told my mother that somethng just isn't right. But being scared, she mentioned that Toddy was right there were pending bills I have to take care of to keep from damaging my credit history.
During the three day "cooling period" Toddy kept in touch to assure my mother that everything would be alright. He told her that since the adoption subsidy will run out in two years, it was in the best interest to go with a conventional 3/27 ARM, which she will have lower payments (An ploy to cover the true nature of Toddy).
Then the after the cooling period the communications with Toddy stopped. I was looking over some of the documents.in the appraisal report, the house was appraised at $83,000.00.in the "Truth in Lending" the amount financed was $65,607.24 and the Prepaid Finance Charge was $4,942.76 for the total of $70,550 dollars. This leaves $12,500.00 in equity. This represents 84.94% LTR, when Toddy told her that the highest LTR she would be able to do was 80%.
Here are the charges of the "Itemization of Amount Financed" as follows:
Itemization of Prepaid Finance Charge -
Origination Fee: @ 0.000% $1,589.00 To Hamilton
Processing Fee: $900.00 To Hamilton
Interest @. 1677/day from 4/5/04 to 5/1/04: $420.36 To Hamilton
Hazard Insurance Premium: $436.33 To Farm Bureau Insurance
Closing Fee: $350.00 To Transnational Title
Amount paid On My Account / Paid to Other on my Behalf -
Discount Fee: @ 0.000% $800.40 To Hamilton
Appraisal Fee: $250.00 To Appraisal One Company
Credit Report: $30.00 To Factual Data
Commitment Fee: $350.00 To Hamilton
Underwriting Fee: $250.00 To Hamilton
Notary Fee: $75.00 To Advantage Financial Services
Title Insurance: $409.00 To Atlantic Title Agency
Recording Fee: $59.00 Transnation Title
Flood Certification: $18.00 To Hamilton
Courier Fee: $45.00 To Transnation Title
Administration Fee: $200.00 To Hamilton
Total Settlement Charges - $6,202.09.
To make things worse, the. 91 cents cash out at closing. This looks like it has hints of "equity stripping" as well. Toddy wasn't looking out for my mother's best interest at all. He KNEW that it would be harder for me to make payments once the adoption subsidy terminates in two years and the follow year of the "change date" that the interest could increase the payments to the point where I can not afford to pay. Toddy was only motivated by the commission/bonus and he hasn't been with Hamilton long at that point in time.
Last year we contacting the Portage office to inquire on Toddy. We were informed that he was let go for certain reasons they would not say. From what I understand, Hamilton is being investigated by the Office of Financial and Insurance Services of Michigan. I will keep you posted.
The mortgage servcing rights was sold to Encore Credit Corp and then to Option One Mortgage Corporation all under the "Notice of Assignment, Sale or Transfer of Servicing Rights" 06/01/04. Then two months later 08/01/04 to Specialized Loan Servicing, LLC who has demonstrated unethical business practices, deceptive loan servicing, poor record management accountability, aging payments, servicing abuse, purposely shortens time to foreclosure, and who knows what else for over two years.
Look up Specialized Loan Servicing or "SLS" to see the four reports.
These people should be and will be stopped. They are the true "killers" of the ultimate American Dream... Homeownership. What if all the above and other report happened to you elderly loved one? It's time to stop this. Don't let them get away with it!
Fight back! Fight back! Fight back! No fear!
May God bless and keep you in his love!
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