Aurora Loan Services
Ripoff-greed non-responsive for their benefit fraudulent ripoff business

In the fall of when interest rates were dropping to rock bottom, Aurora pumped my interest up to 10.75% and chuckled that they would be able to go to 14%. I got caught in an economic down turn but was able to side step foreclosue by getting a bridge loan. Yet when it came time to get a refinance, they tacked on a $21,000 prepayment penalty!

My new lender did not see that one coming so I investigated. It turns out that they had a loan that could do that. BUT ONLY if my originating loan was less than 50% of my gross pay (plus other normal costs) at the time of consumption I had been out of a full time job and was therefore not earning any fixed, defined income. Ameriquest (another dirtbag) was the originating and they fully knew that I was between jobs.

[Code of Federal Regulations]
[Title 12, Volume 3, Parts 220 to 299]
[Revised as of January 1]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR226.32]
[Page 235-237]
TITLE 12—BANKS AND BANKING

Chapter ii—federal reserve system

PART 226—TRUTH IN LENDING (REGULATION Z)
7) Prepayment penalty exception. A mortgage transaction subject to this section may provide for a prepayment penalty otherwise permitted by law (including a refund calculated according to the rule of 78s) if:

Iii) At consummation, the consumer's total monthly debts (including amounts owed under the mortgage) do not exceed 50 percent of the consumer's monthly gross income, as verified by the consumer's signed financial statement, a credit report, and payment records for employment
income.

ANYHOW I submitted this to them in February to ask for payoff without the prepayment penalty. They have strung this illegal action out since July. Still only get "we're looking into it".

Does anyone wanna say class action?

Company: Aurora Loan Services
Country: USA
State: Nebraska
City: Scottsbluff
Address: P.O. Box 1706
Phone: 3082202518

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