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.
Posted by Christine on 01/10/2006 at 02:39 AM
Credit - Collection - Economic News • Junk faxes and SPAM • (0) Comments • Permalink
