Home Buyer Beware of Shady Mortgage BrokersApproved Mortgage CorporationA. J. Bellassai, William Bell, Harry Jakobs, Robert Stowell8655 East Via De Ventura G-200Scottsdale, Arizona 85258 (866) 854-8800
Fact: Harry Jakobs, Mortgage broker license #18637, has been affiliated with three Mortgage Brokerages in the past year; Westgate Mortgage, Coppertree Mortgage and now Approved Mortgage Corporation? (I guess since they couldn't affiliate with an approved mortgage corporation for very long, they decided to make one!?) Fact: Jakobs uses illegal bait and switch tactics when quoting loan rates. How does he do it? The Federal Truth in Lending Act requires upfront disclosure, which he provides and has you sign it. He gives you the feeling that everything is ok. The first couple of meetings he is personable and responsive. Then as it gets closer to the deadline for the funding of the loan, he stops returning calls. Then when the heat is put on him by the seller/home builder, he has lied about clients' financial situation. He has even missed guaranteed closing deadlines, causing clients to suffer financial penalties. Then when he has you sufficiently over the barrel, he will bring you to closing, but the Federal Truth in Lending Good Faith Estimate has been redone. Higher interest rate, origination fees drastically increased, settlement charges changed processing and admin fees added; all which were previously undisclosed. Fact: He advertises:... 8/15/01 - Bond yield - 5.532% change -11/32 - yield change 2% - 11:31 A.M. Mst - zero down loan programs - loans up to 107% loan-to-value. Call for extremely aggressive rates on jumbo loans. All quoted rates are subject to a. 500% origination fee and a 0% discount fee. There is evidence that he does not honor this advertising. Fact: You can do nothing, if you still want the house. Check with a lawyer, he will tell you the same thing. If you sign the new Federal Truth in Lending Good Faith Estimate (even with the new date) you accept Harry's final twist of the arm. Fact: I reported the matter to the Better Business Bureau and received no appropriate response. The main motivation of the BBB is evidently to help Business do Better Business. We just have not understood the nuance; they mean more profit for business even at the expense of the consumer. Fact: I reported the matter to the Arizona Attorney General, Janet Napolitano, who transferred the matter to the Department of Insurance. They told me what I already knew. Harry worked for Westgate Mortgage at the time and they are out of business. I couldn't believe that Arizona would not pursue such a flagrant violation of federal and state law, so I contacted the Attorney General again. No returned calls until I called my State Senator Jay Blanchard. They assured Senator Blanchard they would work on it. Now I've been told that other issues have been placed ahead it. What I need is an aggressive attorney that wants to work pro bono to help me clean up the money lenders and the home-building industry in Arizona.
0 comments