Nations Choice Mortgage ('Nations') is a mortgage company, operating out of Gilbert, Arizona. Nations has misinformed, hidden fees, increased rates to take advantage of unknowing borrowers to misappropriate moneys for Nations own benefit. (Please review Attachments A1-A19, complaint, from 2004 to 2007 past Nations clients, filing complaints against Nations) Nations and its agents acted in concert, with foresight and malicious intent, in this case and on numerous other occasions, to swindle borrowers out of money. Nations continual behavior constitutes a 'criminal pattern of behavior' to steal borrowers funds for years.
On August 18, Linda Schrader ('Schrader'), a Nations' loan officer, informed us, she could get him a 6.75 or he could buy the rate down for '1 point' ('pt) to 6.25. This was the bait and the lie. Schrader intentional lied, for she was quoting ING's wholesale rates (Lender), which stated, at 6.25 the lender would give the broker $1,016.88 for sending them the loan, and 6.75 the lender would give the broker $9,951.88 for sending them the loan. The '1 point' was not to buy down the rate; it was a rebate or original fee of $8,000, which we informed Nations we would not pay, it was a 'deal breaker'. (Please Review Attachment C 1) Schrader generated documents to support her lie that the funds were allocated to 'buy down' the rate. (Please Review Attachment B) We had informed Schrader, both orally and written, we would not pay a loan officer or broker 1 point to submit his loan to a lender. This had no affect on Schrader. She proceeded to process our application, moving and hiding her '1 point' fee by generating fraudulent documents. (Attachment C 1)
On August 18, at approximately 9:44 A.M. (PST), Schrader emailed loan documents with a message to us (Please Review Attachments B 1, August 20, Schrader's email to us; Attachment B 2 - Internet Headers; Attachment B 3 - Application 1003, Page 4, Details of Transaction; B 4 - Good Faith Estimate). Upon reviewing those original loan documents, we informed Schrader that we would not agree to 1 point original fee, stating, it was a 'deal breaker'. (Attachment C 1) Schrader informed us the '1 point' was to 'buy down' the rate, and that she would send a new and 'accurate' document, which would show Nations (Mortgage Broker) was receiving a Lender Flat Fee of $1495. (Please Review Attachment C 2) Schrader also pointed to the 'Good Faith Estimate' which stated the Loan Origination Fee was 'ZERO'. (Please Review Attachment B 4) In the accompanying email Schrader wrote:
'On the last set of documents I sent you if you look at the Loan Financing agreement it should say $1495.00 under the lender I corrected it. When I put the 1 point on the Good Faith Estimate under Loan Discount it copies it over to the Loan Financing agreement under Lender Fee. The 8000.00 is your 1 point on the loan and the 1495.00 is the lender fee.' (Attachment C 1)
On September 19, we received ING's (the Lender's) 'Good Faith Statement' (Please Review Attachment D).
On September 20, we called Nations to address the 1 pt Fee. Schrader's Manager, Ronald Goetz, joined the conspiracy to further Nations' fraud, by authoring a letter to us, stating ING limits Nations ability to disclose. (Please Review Attachment E) We had requested Goetz to disclose all fees by itemizing each fee. Goetz intentionally did not disclose or itemize fees.
On September 20, at approximately 10:00 A.M. (PST), we called ING to clarify ING's 'Good Faith Statement'. Ms. Zee Stewart, who answered the phone for ING, said 'can't talk to you about anything'.inG's lack of action to clarify their own documents further Nations ability to defraud us, and should be held accountable, in line with State Court's ruling in Georgia and Illinois.
This was not the first time Schrader and Nations lied to borrowers. (A 1 A 19) Nations is a predatory group of unethical individuals who feed upon unknowing borrowers, by switching, hiding and lying about charges and fees, to rob funds from borrowers. When we questioned both Goetz and Schrader on fees in the Good Faith Statement, both employed intimidation tactics by screaming at us, saying he did not know what he was talking about, for if he had been in the 'business', he should know this is how things are done. Nation's manager, Goetz stated ING had never sent out an accurate 'Good Faith Statement', in all the loans he had done and this was just one more inaccurate 'Good Faith Statement' by ING.
On September 26, we met with a signing notary to sign the loan documents. These documents clearly show Nations was to receive $9,951.88. If Nations did buy down the rate to 6.25 from 6.75, both Nations and ING violated RESPRA, by receiving and/or grant a rebate to a broker from a lender, if the borrower had been told he was buying down the rate. As RESPRA clearly states: the combined acts of borrowers' funds are alleged used to buy down a rate and granting a rebate on the same loan is nothing more than a thin veiled 'pass through' of the borrowers funds back to the broker. If Lenders were allow to give brokers rebates on a loan which the borrower 'bought down a rate', the only figure which would change is the amount of money the broker was able to extract for the borrower under the veneer of buying down the rate. This type of transaction only misinforms the borrower of who truly benefits from the 'buy down'. The rate is not discounted because those funds are going back to the broker in the form of a rebate - a pencil exchange. (Please review Attachment F, 'Mortgage Broker Rebate from Lender', Rebate paid by Lender to: Nations Choice Mortgage - $1,016.88).
We are requesting all funds spent with Nations Choice Mortgage be returned, and all funds lost for not securing Our Loan as originally agreed upon.
Furthermore, we are requesting your office to initiate a vigorous and immediate investigation into Nations Choice Mortgage past actions. Listed within the attached Attachments are dozen of individuals who have voiced their complaints about Nations. They will confirm the above allegations. Nations Choice Mortgage is the perfect example of why the public perception of a mortgage broker is a cancer that has infected our financial well being, feeding on innocent homeowners. Nations Choice is incapable of telling the truth. Any response by Nations is more of the same ly.
We are requesting your office take whatever action necessary to protect the public from any organization which continues to employ deceitful tactics to swindle funds from borrowers. Nations acts of fraud reaches far beyond the requirements necessary for a successful Class Action Suit.
Respectfully submitted,
Robert & Tiffany
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