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:
To:
Consumer Affairs
Arizona Department of Financial Institutions
2910 N. 44th Street, Suite 310
Phoenix, AZ 85018
March 7, 2006
Re: First Magnus Financial illegal junk fax mortgage lead purchases, payment of illegal kickbacks and false advertising of mortgages in violation of RESPA and TILA.
To Whom It May Concern:
Please investigate the First Magnus Financial Corporation dba Great Southwest Mortgage payments of illegal kickbacks in violation of the Real Estate Settlement Procedures Act (RESPA.) First Magnus paid kickbacks for mortgage referrals to lead generators who illegally sent unsolicited faxes with entirely false advertising of mortgages, violating the Truth In Lending Act (TILA) and the Telephone Consumer Protection Act (TCPA.)
First Magnus Financial Corporation #2
DBA: Great Southwest Mortgage
603 N. Wilmot Road
Tucson, AZ 85711
(520) 618-9000
home office #0903297
For your reference, I am including the 6/24/05 junk fax received on behalf of First Magnus, advertising an ARM with a 4% APR and rates of 1.25%, 1.343%, 1.444%, 1.552% and 1.669% for the first 5 years.
The advertised SAVINGS are not savings at all. In fact, they are DEFERRED INTEREST added to the loan amount.
Also enclosed are my 3/2/06 Motion for Reconsideration and my Initial Disclosures regarding the First Magnus violations of the TCPA in my suit in Kingman, AZ, Justice Court case # 80105 CV 2716 UN. First Magnus was recently dismissed because it did not send the fax to me and only paid the lead generator for the mortgage referral.
First Magnus loan agent Justin Fish was fully aware of the fax and its content, the audio recording is posted at http://fight-back.us/forum/index.php?showtopic=1088 First Magnus failed to acknowledge any wrong doing and apparently continues to pay these illegal kickbacks for mortgage leads obtained through false advertising and illegal junk faxes.
Please enforce RESPA and TILA not only with respect to First Magnus, but also issue an advisory letter to inform all mortgage brokers and mortgage bankers that lead purchases are violating RESPA’s illegal kickback provisions.
Just last week I received 3 more of these mortgage junk faxes advertising loans with entirely false terms and today I received an unsolicited call promising approval for “the lowest rate” regardless of credit and income! The call is posted at CreditSuit.org
Too many consumers’ lives are destroyed because they were deceived by unscrupulous lead generators and loan agents. Often their lies cause foreclosures, divorces and sometimes even death. I hope you consider the protection of unsophisticated consumers more important than scummy mortgage corporations’ profits.
Sincerely,
Christine Baker
c: posted at http://mylitigation.net/, http://fight-back.us/forum/index.php?showforum=89, http://creditsuit.org/ and at other websites
Posted by Christine on 03/07/2006 at 10:10 PM
Credit - Collection - Economic News • Junk faxes and SPAM • (4) Comments • Permalink
Thought this news item was just PAR for the course on how the FCC views Junk Faxes.
http://yro.slashdot.org/yro/06/04/07/1436239.shtml
Thanks, interesting that they’re talking about it NOW. It’s too LATE to fax legislators now and of course the FCC has been soliciting comments prior to their order.
At slashdot:
“Under the new rules, a junk faxer could visit your website and call that an existing business relationship.”
This is absolutely NOT true, the order is very specific about that.
I haven’t had time to deal with faxes, but I’ve been following the discussions at the junkfax litigation list and several people really put in an effort to prevent major damage by lobbying with various influential organizations and they prevented major damages.
It’s been a month since I sent the above complaint about the illegal kickbacks, I have NOT received any kind of response or acknowledgement.
I do get at least 2 or 3 mortgage faxes a week - that’s after having sued a bunch and my number is KNOWN as a litigant’s number. Business must be SLOW for the mortgage companies.
The FCC keeps issuing citations, I don’t know if they ever collect.
And I’m still waiting on the final ruling in my local suit against First Magnus. They continued to buy those leads AFTER I sued them and others are going after them and the lead generator.
First Magnus was kind enough to attach a printout of my complaint with the AZ Dept. of Financial Institution to their response filed with the court. They are so proud of their illegal activities. Too funny!
Never the big companies will admit they do illegal activities but they will always be proud doing it
First Magnus went bankrupt last year, I was lucky they paid the settlement just a couple months earlier.
However, the AZ Banking department is still around, still doing nothing.
