Fannie Mae & Freddie Mac
Intentionally Deceived Consumers? What they don't want you to know!

Fannie Mae & Freddie Mac Intentionally Deceived Consumers??? What they don't want you to know! *CONSUMER TIPS. & how to pay off that mortgage

Fannie mae & freddie mac will cost home owners over a billion dollars if action is not taken immediatly!

On January 1st 2001 the secondary market (Fannie Mae and Freddie Mac) removed your right of prepayment on a home mortgage.

(the following was removed)

"The note holder will use (all of) my prepayments to reduce the amount of principal that I owe under this note. 1"

What does this mean to the average consumer?

That they will be required to make "all monthly payments due under the Note 2" before they can reduce the principle.

In laymen's terms

It means that you can not prepay a mortgage or reduce the amount of interest that you will pay on your mortgage loan. This will cost a homeowner thousands of dollars.

Fannie mae and freddie mac looked out for who!

Their stock investors at the expense of "American home buyers". This is apparent by looking at the new note language as of January 1st 2001 compared to the prior note language.

AFTER READING THE INFORMATION BELOW
For more information, you may contact
John S. Combs, Sr.
(815) 397-2100
jcrealty@aol.com... Keep reading first.

1) Multistate Fixed Rate Note - Form 3200 12/83 (updated 9/91)
2) Multistate Fixed Rate Note - Form 3200 1/01

Fannie mae and freddie mac rip off consumers???

Historically homeowners have had the right to prepay their mortgages and only pay interest on the money that they owe from time to time. Changes made in the Multistate Fixed Rate Note (3200) as of January appear to have take away this right.

The note that originated in 12/83 and was modified in 9/91 has changed. The first change is in section 3 of the note titled "Payments". Originally the note said "My monthly payments will be applied to interest before principal." This has been changed to "Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal."

The second change is in section 4 of the note titled "Borrower's Right To Prepay". The changes are as follows;

1/01 I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. (Added to end of first paragraph)

12/83 The note holder will use all of my prepayments to reduce the amount of principal that I owe under this note. (“all of” Deleted from second paragraph)

1/01 However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. (Added after second Sentence in second paragraph).

Why did fannie mae and freddie mac change the language of the note so drastically that has not changed since before december of 1983?

Because of one individual that was trying to help the consumers save interest charges with a few simple changes in how they paid their mortgage. Because of something called the ‘Mortgage Maximizer' that was presented to Fannie Mae in February by John Combs.

Can this be proved?

It can be proved that the ‘Mortgage Maximizer' was presented to Liz Ryan, Senior Affordable Housing Business Manger of Fannie Mae at the Chicago Association of Realtors. The ‘Mortgage Maximizer' information system was shown to Liz on that date and she took the video program to show to others at Fannie Mae.

Since Fannie Mae said (www.fanniemae.com/savings/index.html) it is all about saving money for America's home buyers Mr. Combs thought that this would be a great program to help consumers and showed it willingly to Fannie Mae. Mr. Combs was eager to get this out to the public and called several times after the initial showing of the program to Fannie Mae but no calls where returned.

It can be shown that before the ‘Mortgage Maximizer' was presented to Fannie Mae consumers could prepay and the note holder would be required to use all of the prepayments to reduce the amount of principal that the borrower owed under the note. (see Deleted line from 2nd paragraph of 3200 note 12/83).

If done correctly under the old note (3200 - 12/83) borrowers had the ability to use the lenders payment (amortization) schedule to track, audit and prepay a mortgage to eliminate scheduled interest payments saving thousands of dollars over the course of the mortgage.

With the removal of ‘All of’ from "The note holder will use all of my prepayments to reduce the amount of principal that I owe under this note" only one conclusion can be drawn, that Fannie Mae and Freddie Mac do not want consumers to prepay a mortgage and save interest. Considering that this happened after the presentation of the ‘Mortgage Maximizer' from John Combs it is a logical conclusion.

Who is aware of the note change that occurred january?

John Combs has talked with title people, attorneys, accountants, lenders and real estate professionals and to date none of them where aware of the changes. This puts many of them at risk for giving out incorrect information in regards to prepaying a home mortgage.

Who should be aware of the "mortgage maximizer" and the changes to the multistate fixed rate note?

Bankers or lenders, title people, attorneys, accountants, real estate professionals and everyone who has a mortgage, plans to have a mortgage or is planning on refinancing a mortgage.

Bankers or lenders may not care about the changes to the note, but should be aware of it.

Title people, attorneys, accountants, real estate professionals and others that advice consumers in real estate transactions need to know the changes so that they don't give misinformation to consumers.

Consumers need to be aware that if they plan to refinance that they will lose their rights to prepay their mortgage and the ability to save interests and private mortgage expense. (PMI), based on the new mortgage language.

Is the new language on the note clear?

No! Due to the confusing language of the Multistate Fixed Rate Note released January many lenders, Realtors and lawyers have different opinions. Only when comparing notes to each other does it become obvious that the intent of the changes where to stop borrowers from being able to prepay to skip and thus save scheduled interest payments. This is especially apparent after viewing the ‘Mortgage Maximizer'.

What is the intent of fannie mae and freddie mac in changing their note language?

John Combs can not to date get Fannie Mae to clarify the intent of the language. It is apparent to John that the new note language takes away the right to borrowers to save interest expense by prepaying and that the changes to the note were a direct result of him showing his ‘Mortgage Maximizer' to Fannie Mae. If that is not their intent then they need to clarify the new note language that can be interpreted as not taking away the borrowers right to prepay to avoid interest expense on the prepayment amount.

WHAT IS THE "Mortgage Maximizer"?

It is a learn for life do it yourself mortgage tracking and prepayment system that allows borrowers to properly prepay their mortgage systematically, on a payment to payment basis, as they can afford to and within their monthly budget. Provided on a 30 minute VHS tape, it takes you through all the required steps to properly prepay your debt to eliminate paying scheduled interest payments and reducing required Private Mortgage Insurance payments. This is possible by properly utilization the lenders payment (amortization) schedule.included is how to adapt the Lenders payment schedule for your use, provides you the required written notice of a prepayment as required by your note and much more. Conceived in 1992 the ‘Mortgage Maximizer' resulted in the creation of a not for profit organization in 1999 called the "Consumer Debt Reduction Institute". John Combs is the founder and president.

The Consumer Debt Reduction Institute is an organization that was formed to be a resource and advocacy organization for consumers throughout the Continental United States with regards to consumer debt. It's purpose will be to research, provide programs, partner with others and provide education to all consumers on how best to deal with consumer debt from the consumer's prospective.

What you can do to help yourself

1. Contact your State and Federal Congressman and Senators and request that they protect your right to prepay a home mortgage to save interest charges. Let them know of the changes to the Multistate Fixed Rate Note that remove the note holders requirement to use all of your prepayments to reduce the amount of principal that you owe under the note.

2. Call, write, send e-mail, go see anyone who you think might be able to get this change to the Multistate Fixed Rate Note changed back to the way that it was and give us our right to prepay back.

3. Don't be silent, let everyone you know what is happening and ask them speak out for our rights and those of our children.

4. Let me know what is going on in your community. If you know anyone that you feel may listen and help the Consumer Debt Reduction Institute to get the facts out - Contact us!

5. Get and use the mortgage payment system called the "Mortgage Maximizer" and use it to force lenders to treat you fairly when it comes to controlling your amortized mortgage debt. Questions on the ‘Mortgage Maximizer' can be answered by visiting our web page at http://www.stopinterest.com.

6. Financially support the Consumer Debt Reduction Institute so we can work full time to help and support borrowers rights against those that want to take them away. A donation of $5 to $10 or more from each of you can allow us to afford to be your eyes, ears and voice in regards to this important issue. Our address is Consumer Debt Reduction Institute 4315 East State Street Rockford, IL 61108

Fannie mae & freddie mac note language conventional loans taken from the original note.

Multistate fixed rate note - single family - fnmafhlmc uniform instrument form — 3200 12/83 — 9/91

3. PAYMENTS
(A) Time and Place of Payments
I will pay principal and interest by making payments every month.

I will make my monthly payments on the % day of each month beginning on %.

I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note.

My monthly payments will be applied to interest before principal. If, on %, I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "maturity date" I will make my monthly payment at % or at a different place if required by the Note Holder.

(B) Amount of Monthly Payments My monthly payment will be in the amount of U.S. $

4. BORROWER'S RIGHT TO PREPAY
I have the right to make payments of principal at any time before they are due. A payment of principal only is known as a "Prepayment". When I make a prepayment, I will tell the note holder in writing that I am doing so.
I may make a full Prepayment or partial Prepayments without paying any Prepayment charge. The note holder will use all of my prepayments to reduce the amount of principal that I owe under this note. If I make a partial prepayment, there will be no changes in the due date or in the amount of my monthly payment, unless the Note Holder agrees in writing to those changes.

: New as of January 1

Multistate fixed rate note - single family - fnmafhlmc uniform instrument form — 3200 1/01

3. PAYMENTS
A) Time and Place of Payments
I will pay principal and interest by making payments every month.

I will make my monthly payments on the % day of each month beginning on %. I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on %, I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "maturity date" I will make my monthly payment at % or at a different place if required by the Note Holder.

(B) Amount of Monthly Payments
My monthly payment will be in the amount of U.S. $

4. BORROWER'S RIGHT TO PREPAY
I have the right to make payments of principal at any time before they are due. A payment of principal only is known as a "Prepayment". When I make a prepayment, I will tell the note holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note.

I may make a full Prepayment or partial Prepayments without paying any Prepayment charge. The note holder will use my prepayments to reduce the amount of principal that I owe under this note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial prepayment, there will be no changes in the due date or in the amount of my monthly payment, unless the Note Holder agrees in writing to those changes.

For more information, you may contact
John S. Combs, Sr.
(815) 397-2100
jcrealty@aol.com

Company: Fannie Mae & Freddie Mac
Country: USA
State: Nationwide

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