We applied for and were approved for a 30-year loan with a fixed rate. CTX deliberately with held all terms until closing. It was changed to an ARM with terms we could never meet and a 36-month prepayment penalty that prevented us from ever refinancing and set us up to default from day one - which we did.
Aside from the countless mistakes we found on nearly every page of the closing documents after the closing, an audit provided 37 pages of violations in lending laws and accounting errors. HUD 1 and Truth in Lending laws were violated. The actual underwriter was not the one on file with the title company and was not licensed in Colorado. (That made it a 3rd party loan which is illegal.) The underwriter threatened us 10 days prior to closing and told us if we didn't come up with a certain amount of cash to "buy down the interest rate" and meet his demands, he would cancel the loan. According the the auditor, it's most likely he pocketed at least a portion of that money.
The auditor told us they have never seen a loan as bad as this one and that they have seen people go to jail for a lot less than this lender and underwriter did to us and that criminal charges needed to be filed. We have spent 30 months researching and documenting and have enough evidence to send someone to jail, but can't find anyone in the legal system in this state with enough backbone to help us and defend the countless thousands of victims of mortgage loan fraud in this state. Colorado is now ranked in the top 5% of foreclosures in the country and we are certain that CTX is one of the reasons. We were not the first victim and were not the last.
How do predatory lenders get away with it? We think we found the answer. It's called a "Mandatory Arbitration Agreement" which they gloss over at closing and 99% of everyone who purchases a home signs - unknowlingly giving up your Constitutional rights to seek and attorney or a trial by jury. Your signature is a license for CTX to lie, cheat, steel, engage in kickbacks and racketeering and violate every lending and consumer law in the books. And when they are done, your lose your house, your credit is destroyed, your family is out on the street. Unless you have very deep pockets to pay a private attorney - good luck trying to find anyone to enforce the state and federal predatory lending laws. We have yet to find anyone in this state with the guts to stand up to their corruption.
CTX Mortgage has perfected the art of deception and taken mortgage lending crimes to a new level at our expense. Stay away from this lender at all costs!
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