The Mortgage BanQ was a net branch of First Source Financial USA for about 1 1/2 years (ended in December). We always followed protocol, and always looked out for the best interest of corporate (First Source Financial USA). Everything was going well for over a year or so; we were funding over $10,000, 000 in volume each month. First Source was making about $50,000 per month on our branch buy charging us licensing fees and by making back end rebates (YSP) on our correspondent loans we funded through their correspondent division.
One day they told us that the way we market to customers can no longer be done, so we found another company that would allow us to. After fining another company to fund loans through, we gave our 30 day notice to First Source. Once they received our notice, they said to continue business as usual until we fund out our pipeline (all loans in processing) with them, then they'll pay us a final check which will include all commissions ($200,000).
After submitting all of our files and clearing them all through their compliance department, they sent us a partial payment of $78,000 which BOUNCED! I called their accounting department (Rea Stanco one of the owner's daughters) and the operation's manager (John Loveless) and was told by John Loveless that it was a knee-jerk reaction, and to cash it again. Well, it BOUNCED again!
After that, First Source stopped all correspondence with The Mortgage BanQ. I tried many time to reach members of corporate, and the only response I received was from Rea Stanco. She told me that she has no idea why First Source would do this to their best branch, and told me that she was instructed by Joe Guiliano, President of First Source to cease from any correspondence with The Mortgage BanQ.
We now have attorneys trying to help us recover our stolen commissions, but First Source is trying to say that they didn't pay us due to a potential lawsuit that was caused by our direct mail (which was approved by First Source's Marketing Department). That's like the State of California saying that it is okay to drive at 70 miles an hour, and then giving the citizen's of California tickets for driving 70makes no sense. Bottom-line, we were their biggest and top producing branch and they were upset with us for leaving, so instead of thanking us for all the money we made them, they screwed us for $200,000.
Basically, we were RIPPED OFF $200,000. On top of that we had to pay $79,500 in marketing to make that $200,000, plus pay commissions on the loans that First Source stole from us to our loan officers. When it is all said and done we were RIPPED OFF over $300,000. This is White Collar Crime at its best!!! I can't believe we need lawyers to resolve this, and not police. I guarantee in the olden days, they would have been hung for this crime. Joe Guiliano and all of First Source have absolutely no ethics, and I feel sorry for them. Karma is something I wouldn't want to mess with, but in time Karma will always catch up to you.
This is a warning to everyone out there that is thinking of teaming up with First Source, or is currently teamed up with them.
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