Introduction
I entered into a refinance loan from Affinity Funding (broker), Alliance Bancorp and Washington Mutual. The terms of my loan were a misrepresentation which was perpetrated by Lance Blanchard. Now, I am in a loan that I never wanted. I even tried to let Washington Mutual know before they bought the loan from Alliance Bancorp, effective 12-1-06 but I got no response from them regarding my complaint. This was even after they said they would look into the matter, twice. And now I find that they are honoring the loan that Alliance Bancorp sold them even after I told them of the misrepresentation.
Previous Loan
I was in a negative amortization loan at 4.5% with Countrywide Home Loans. I found that if I only made a minimum payment my loan balance would go up every month which was the difference between a minimum payment and an interest only payment. My interest rate went up every month which made my interest only payment higher each month. I was keeping up although I was getting very worried. I needed to get out of this loan but I certainly did not need to get into another loan with a higher interest rate which keeps going up month after month, negative amortization and another prepayment penalty loan.
Offer from Affinity Funding
On 9-7, I was quoted a 1% per annum fixed interest mortgage payment for the first five years on my refinance loan by Lance Blanchard of Affinity Funding. I asked him numerous times if this was a minimum payment schedule or an interest only payment schedule. He assured me that it was interest only payment schedule for the first five years and then we could renegotiate another loan after that first five years. I asked numerous times to send me a payment schedule of what I would be paying for the first five years. He finally sent me a Truth-In-Lending Disclosure Statement payment schedule that went up every year for 5 years and then a big payment schedule for the rest of the 30 year mortgage.
We signed the documents for the loan that was being funded by Alliance Bancorp. The documents I signed did not have anything about the first five years being an adjustable rate loan. I believe they switched the pages as I did not initial any of the Adjustable Rate Note pages. They switched pages on that document from the 1% per annum fixed interest mortgage rate to the adjustable rate.
I had only signed at the end of 6 pages. There was no provision regarding the interest rate changing every month. When I got the first monthly payment coupon from Alliance Bancorp, it reflected a payment of $1,723.99 for principal and interest. After making the calculations with the 1% per annum interest rate it did show that payment for interest was $521.11 toward interest and the remaining to principal. There were no other options.
Loan sold to Washington Mutual
Alliance Bancorp sold the loan to Washington Mutual after only one month. Now I find I am in a mortgage payment schedule that is $1,723.99 as minimum payment, $3,787.62 as interest only payment and $4,114.05 as fully amortized payment. There is no way that I could afford a $3,787.62 interest only payment on what I make in income. I would not and could not have agreed upon this. I could afford the $1,723.99 and that is what I agreed upon. I do have the documents to show all of this. The interest rate on this mortgage is now at 8.5%. This is a 1% interest rate hike every month I have had this mortgage. Because of the misrepresentations made by Affinity Funding and Alliance Bancorp, I did not think Washington Mutual would buy this loan.
Alliance Bancorp Mortgage Interest Statement
I received my Mortgage Interest Statement from Alliance Bancorp that they are reporting to the IRS regarding my payment. It clearly shows that $521.11 was for interest and $1277.32 to principal. I have a copy of that form. This payment toward the principal was not reflected on the payment coupon for the next month. My principal went up and I was given option arm payment choices. I am now in a negative amortization loan rather than what was promised me.
Complaint Made With Affinity Funding
I contacted Jason Radwan, the owner of Affinity Funding after not getting any return calls to me from Lance Blanchard. I finally spoke with him and he told me that I had signed the documents reflecting the variable interest option arm loan. I emphatically told him that I did not sign any documents that showed that. I also mentioned to him that I was told by Lance Blanchard the Mortgage was a 1% interest per annum loan. This is what I had agreed to. He told me that is not what Lance Blanchard said and it was his word against my word.
I expressed to Mr. Radwan why would I go from a negative amortization loan that I was already in at 4.5% to another negative amortization loan at a higher interest rate of 6.5%. That didn't make any sense at all. The whole reason I went along with this refinancing was to get out of a negative amortization loan. What attracted me to the loan was the offer of 1% fixed interest for five years. He told me that it because I got cash out. That was not my intent of the loan. The cash out was an offer made by Lance Blanchard to do some home improvement. Again, he said that it was my word against Lance Blanchard's word.
I was also told by Mr. Radwan that if 1% interest rate per annum sounds too good to be true, it must be a scam. I reminded him of the fact that it was Lance Blanchard, his employee, who offered me the 1%. What Mr. Radwan was in essence saying, that their company is operating a scam.
Complaints Made
I sent an email letter of complaint to Affinity Funding, Alliance Bancorp and Washington Mutual. I got a call back from Affinity Funding but I had heard nothing from Alliance Bancorp. I got an email twice from Washington Mutual saying that they would be looking into this matter but they never did. I know this because I have tried to do another refinance in order to get out of the negative amortization loan but they still are going to charge me the six months interest rate prepayment penalty.
Other Items
Appraisal Fee
I was told that Affinity Funding would pay for the appraisal fee of $495.00. It was after several calls to Lance Blanchard and my initial email to Mr. Radwan did I finally get the check for the appraisal fee.
Checks from Escrow Company
I received two checks from the escrow company for payments T-Mobile and Union Adjustment which was on my credit report. I told Lance from the beginning that I did not know about these listings on my credit report and I have been trying to get it resolved for over 5 years. He told me that he would credit my loan with $1,000.00 in order to pay the negative listings on my credit report although I knew nothing about them. Because I did not know anything about those listings, I had no idea where to send the two checks to. Lance Blanchard was going to get that information for me. To this date I have not heard anything from Lance Blanchard on where to send the checks to.
Cruise
As an incentive to doing a loan with Affinity Funding was a cruise for two. When they sent me the brochure, it was for a 7 day cruise. Later, I found out it was just a 5 day cruise. But, when I finally got the certificate it was for only a 4 day cruise. If I wanted to get a longer cruise I would have to pay the difference. I also found out too late that it was a cruise for 2 adults. This is false advertising and deceit.
I got the brochure from Travel America Vacations with a Registration Form asking for $20.00 registration fee. I sent it in on 10-25-06 and I have not heard anything from them as promised by their Registration Form. They would be sending me sailing dates, booking procedures and a toll free number to contact them. I have not gotten anything from them.
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