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Junk faxes and SPAM

Tuesday, March 07, 2006

Open letter: First Magnus Financial Corporation Payments of Illegal Kickbacks And False Advertising

Below is my complaint to the AZ Department of Financial Institution.  I submitted a complaint to them about a year ago and they did nothing.  The unlicensed “Mortgage Center” hung up on them!  So there was nothing they could do. 

I expect nothing but more material for a book on corruption in America.  I have NEVER seen any licensing agency do anything about my complaints regarding TILA, RESPA or TCPA violations.

The economy runs on the fumes created by these loans.

The cash out refis to pay off the credit cards and buy stuff nobody needs, the purchases of overpriced houses to slow down the collapse of the housing market ... it’s what keeps the economy going and the regulators do anything to support mortgage origination at ANY cost.

My 3/7/06 complaint to the AZ Dept. of Financial Institutions:

Tuesday, January 10, 2006

Illegal KICKBACKS paid by First Magnus Financial to junk faxer

Last week I sent my initial disclosures and discovery requests, posted at CreditCourt and the junk fax and correspondence are posted at First Magnus dba Great SouthWest Mortgage

Their loan agent Justin had the nerve to BLOCK my number after first admitting that he knew the leads came from faxes and then refusing to give me the contract with the lead generator in exchange for NOT suing them. 

After I sued, these morons refused to accept any liability.  So now they’ll be my poster child for illegal kickbacks and Truth in Lending violations, I’ll amend my complaint to include those claims.

As just about ALL mortgage faxes, they advertised the 1% rate I previously posted about at Housing sales slowing down - house-poor Californians - mortgage fraud rampant

First Magnus ignored my written request for the specs on the advertised loan. 

From my interrogatories:

8) Provide all terms for the mortgage advertised in the 6/24/05 Junk Fax, such as loan fees (points), repayment period, negative amortization, interest rate, index, margin, maximum rate, rate adjustment periods, adjustment limits, re-amortization period and prepayment penalty.

From my requests for admissions:

14) Admit that the 4% APR advertised in the Junk Fax is lower than the true APR.

15) Admit that the “SAVINGS” advertised in the Junk Fax are not savings, but deferred interest.

16) Admit that the mortgage advertisement on the Junk Fax is lacking disclosure of terms such as loan fees (points), repayment period, negative amortization, interest rate, index, margin, maximum rate, rate adjustment periods, adjustment limits, re-amortization periods and prepayment penalty.

For over half a year I’ve been calling on these faxes and I STILL don’t have a complete program description and for the most part I get nothing but lies about the interest rate.  I looked at the Truth In Lending Act (TILA), but it looks like it provides only for administrative enforcement.  Please let me know if I’m missing something!

FDIC and HUD Settle Case Against New England Mortgage Company for Accepting Kickbacks for Business Referrals
http://www.fdic.gov/news/news/press/2005/pr11605.html

“… “RESPA can’t be any more clear when it comes to the giving or receiving of ‘things of value’ in exchange for the referral of business-it’s illegal,” said Brian Montgomery, HUD’s Assistant Secretary for Housing-Federal Housing Commissioner. “The message to the rest of the industry should be equally clear-we will not only investigate those who give, but those who receive kickbacks.”

“RESPA provides important protections for home buyers. We fully support enforcement of this important consumer protection legislation,” said Chris Spoth, Acting Director of the FDIC Division of Supervision and Consumer Protection.

....”

As regular readers know, there’s a very good chance that Mr. Soth is going to get an Open Letter from me, asking for enforcement.  Of course they probably don’t regulate mortgage brokers and bankers, so I’ll be dealing with the DO NOTHING AZ Dept. of Banking again.  I am TOTALLY fed up with the mortgage scum - NOT because of the faxes, but because of the false advertising on the faxes and the CONTINUED misrepresentations by the loan agents.

I wish I had found this RESPA illegal kickback section before I settled with Ameriquest because they ADMITTED to buying the lead and continued to buy leads.

I really don’t understand why HUD is upset about some people getting gifts for referrals when these totally false mortgage advertisements are faxed by the millions and so many people will lose their homes in foreclosure.

Well, I guess I DO understand, HUD is another extremely corrupt organization.  I wonder if they regulate Ameriquest.

This also applies to LendingTree and LowerMyBill.com (Experian), they RECEIVE the illegal kickbacks.

Wednesday, December 21, 2005

Feds issue “proposed guidance” regarding the “innovative” 1% mortgages

UPDATE 3-U.S. warns about nontraditional mortgages

Tue Dec 20, 2005 05:40 PM ET
(Adds Gov. Bies comments)
By Mark Felsenthal and Kristin Roberts

WASHINGTON, Dec 20 (Reuters) - U.S. bank regulators issued proposed guidance on Tuesday telling mortgage lenders they should take caution with innovative new mortgage products that may strain the finances of borrowers and banks as interest rates rise.

“While innovations in mortgage lending can benefit some consumers, the agencies are concerned that these practices can present unique risks that institutions must appropriately manage,” bank regulators said in a statement accompanying the proposal.

The guidance targets interest-only and payment option adjustable rate mortgages and the practice of pairing exotic loans with second mortgages and allowing reduced documentation for borrowing.

The proposal was issued by the Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the National Credit Union Administration.

The proposed guidance follows a five-year rally in the U.S. housing market that has seen home construction and sales notch annual records and sent prices up more than 53 percent on average nationwide.

Price gains in some local markets have been even greater. In California, for example, prices have soared nearly 110 percent over five years, according to government data.

Regulators and some economists have started raising concerns about loose lending practices and the more aggressive use of what Federal Reserve Chairman Alan Greenspan called “exotic” mortgages that carry greater risks than traditional 30-year fixed-rate loans.

Those loans have helped sustain the housing rally by giving homebuyers the ability to afford ever-pricier houses, even though household income has not risen as quickly.

Some economists now worry that as interest rates rise, so will delinquency rates and borrowers may find themselves unable to make payments. Rising delinquency rates also may pressure banks that offered those mortgages and the investors who hold much of the risk due to their purchases of mortgage-backed securities.

“We want to make sure that, at this stage of the housing expansion, lenders are not taking on excessive risk in the housing market,” U.S. Federal Reserve Gov. Susan Bies told Reuters.

“Sometimes, lenders stretch to grow the volume of lending as the market shrinks. As they stretch to grow volume, they take on more risk. We want to make sure they manage the risk appropriately,” she said.

She also noted that a lot of the products regulators are concerned about are being offered by a small portion of banks.

...

That is SO Much CRAP!  Those are just about the ONLY products advertised.  Susan Bies lives on Mars?

Back in August I posted at Housing sales slowing down - house-poor Californians - mortgage fraud rampant about my call to the Bridge Capital branch Mortgage Standard and how Mike Clark lied to me about the rate being 1% for 3 years. It’s really about 6% and is a negative amortization loan.

I’ve since received many new faxes from many other brokers and mortgage bankers, ALL advertising this program and none provided a truthful explanation on the phone.  To date, they ALL refused to provide me with the written terms for this program.

THAT is the problem and as usually, the totally corrupt regulators entirely ignore it.

They’re sweating bullets, don’t want to tighten the money supply because they expect the real estate market to collapse.  So they put out this “proposed guidance” in a lame attempt to cover their asses.

As usually, the regulators couldn’t care less how many people will lose their homes because they refinance their unsecured credit card debt into their homes with these awful loans, after being lied to about the terms by mortgage brokers and bankers.  The regulators don’t mention the entirely illegal advertising of these loans through massive junk fax and SPAM campaigns.

Many home owners will end up in foreclosure a few years later when they owe MUCH more than they borrowed, the payments increase dramatically and they can’t refi again because they have NO equity.

Friday, December 09, 2005

Bank account info needed for American Agencies and American Home Loans (CBSK) to collect judgments

Two readers wrote that they have UNPAID judgments against American Agencies (collector) and American Home Loans (CBSK), a scummy junk faxer.

Since I’m way behind on mail this week I’ll just reply to both here and maybe this posting will get me some of the info to assist with the collection of these debts.

I’m aware of numerous settlements by both companies, most likely paid from the company checking account.  However, since they haven’t paid *me*, I don’t have this info handy.  If I had nothing else to do, I could certainly spend a few hours going through my email and contacting people who wrote that they settled, but unfortunately I’m way too busy.

However, if you email me the scanned judgment (or fax to 571-222-1000) for posting (I can take your personal info off), it’s quite likely that someone will submit banking info and I’ll make a personal effort to get you paid.

I’d love to post judgments against a DEADBEAT collector like American Agencies and junk faxer CBSK.  That American Agencies isn’t paying doesn’t surprise me at all, but that CBSK won’t respond to collection letters for a judgment obtained because they didn’t pay for services is hard to believe.  I know the loan business is slow, but is it THAT slow?  Is CBSK going to be one of the first mortgage companies to go out of business?

I’m sending this URL to the CBSK attorney to make sure this is real.

Thursday, November 03, 2005

Got my $2,000 after all - mediation worked out very well

I’m SO glad I didn’t sign that Bridge Capital 9-page settlement agreement.  The mediator reduced it to two sentences.  Actually Bridge only assisted with the settlement with The Mortgage Standard, one of their branches and they insisted that they had nothing to do with the junk fax, which could of course be true.  I do know that Bridge Capital used to junk fax and I probably have some of their 2004 faxes in my pile of unidentified faxes.

I posted about my initial call to The Mortgage Standard at Housing sales slowing down - house-poor Californians - mortgage fraud rampant and My small claims suit against Bridge Capital (The Mortgage Standard)

EVERY court should have a similar mediation program.  Attendance is mandatory, but of course you’re not forced to settle. The mediation discussion is confidential, but the settlement isn’t. 

Got a lot to scan and post, also settled the Olympic Home Loan - Central Pacific fax, although for only $500.  The owner of OHL is to STOP faxing and that was more important to me than more money.  Hadn’t realized that the settlement isn’t confidential and I wanted to be able to post that he KNOWS that faxing is illegal.  I really want others to get treble damages if they get any OHL faxes.

At Fight Back!!!:  Central Pacific Mortgage - Olympic Home Loans

If all the junk fax litigants made their settlements public, I’m sure just about all judges would award the treble damages if they got the previous NOT secret settlement agreements.

The Central Pacific Mortgage CEO/THUG John Courson never even told OHL to stop faxing and of course ignored me.  I hope I soon get around to finishing my letter about the mortgage scum to the Cal. AG.