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Discussion in 'Homesteading Questions' started by heelpin, Aug 27, 2004.
This may be your mortgage lender, but ours was not deceiving us in any way that we could determine. We have checked things out several times, and have refinanced twice. She gave us a good rate each time, and we could easily lock in to the lower rate.
I guess we are in a good area, and you apparently are not. Sorry to hear that.
Glad to hear you live in a good area with honest bankers.
Personally, I don't think that Bob is out of the woods yet unless his lender absolutely does NOT sell notes on the secondary market. If they keep them in-house for the life of the note then he's got a chance. Otherwise, you need to not only keep an eye on your lender, (and remember that you have a 3 day right of recission from the day of closing should you find something askew in your paperwork such as GFE disclosures/HUD 1's) but you also have to keep an eye out should your mortgage SERVICER change. A lender and a servicer can be two completely different animals and you will most likely NEVER know when your note is sold as long as the servicer stays the same. In other words, your note could be sold 100 times and you simply will not know unless you perform your own title search - as long as the servicer stays the same. Per RESPA, I believe, you are only required to be notified when your mortgage SERVICER changes but THAT notification has to come from both new AND old servicers within 15 DAYS of transference of servicing rights. Failure to do so within that time period or at all is a RESPA violation.
May 2004, Fairbanks Capital Corp, (NOW known as Select Portfolio Servicing, Inc.), whose primary function is mortgage servicing, took 750,000 victims for a ride when the Federal Trade Commission and HUD agreed to settle USA/Curry v. Fairbanks for $40 million. Fairbanks was allowed to NOT admit any wrongdoing and put up the cash meaning that each victim that opted IN to the settlement is receiving anywhere between $50 - $500 on average restitution in exchange for forfeiting all of their legal rights to ever go after the company for any violations ocurring between Jan 1999 and Dec 2003. Many people have lost their homes to this company due to illegal foreclosures and many more are still fighting to save their homes. I know of marriages that have been destroyed due to illegal and underhanded trickery of not only Fairbanks but other mortgage servicers as well. I have also heard of several suicide attempts and "successes" due to frustration from trying to deal with this issue. From payments being recorded as reeived but not applied until after grace periods, to force placed insurance despite having your own homeowners policy, to illegal interest on corporate advances to the tune of literally 999%+ mortgage servicers are making 100's of millions of dollars per MONTH simply by juicing accounts an extra $10 or $50. ($10 x 1,000,000 loans per month)
Bottom line - lenders aren't the only ones that deserve close scrutiny. Many, if not all, servicers fall through WIDE cracks in the system when it comes to enforcementand/or legal action. I know of states that simply have no RSA's on their books that address servicers and, therefore, have no way to keep them in check or penalize them.
Try checking out www.MSFraud.org for more info on servicers and take a peek at the discussion forum there as well.
Feel free to drop me a line directly also as I'll attempt to answer any Q's.....
Many people have lost their homes to this company due to illegal foreclosures and many more are still fighting to save their homes.
Thanks Mike, for very good information, I remember seeing on the local news about this happening to some home owners here.
The loan officer told me that she has not had any sold on the secondary market from her Savings and Loan company for the 19 years she has been there. There is no reason for them to sell to the secondary market, they make their money on the interest on the loans, not the sale of them to another firm.
Our first loan on a house was with the same savings and loan. We paid it off in 19 years instead of 30. We were impressed by their flexibility.
It is a savings and loan company, not a bank.
"It is a savings and loan company, not a bank."
Sounds like you did your homework, Bob. DEFINITELY good for you. Next time, should there be one, that I need to look for a mortgage I'm going to look at CU's and small locals first and try and find something along the lines of what you found.
The only thing I could think to caution on is that Silverado was also a Savings & Loan. From my research, it may very well have been the fact that Silverado went belly up that was at least partially responsible for the creation of Fairbanks Capital/Select Portfolio Servicing. You can easily play "Six Degrees of Separation" and go from Silverado and Neil Bush to Fairbanks and Thomas Basmajian. Of course Basmajian had already skated on a previous RICO charge stemming from illegal business conduct in the mid/late 80's when he created Fairbanks.
Always do as much homework as posible BEFORE you sign on the line and make absolutely sure that you have a paper trail "just in case". After my experience I will never again conduct mortgage/banking business strictly by telephone again. Hard lesson for me to learn but definitely worth learning.
Lenders have you over a barrel.
I took may time and asked to see every shred of paper pertaining to my loan and every document that I would be requested to sign weeks before closing.
At the end, at closing, it's a joke. 20 pages with double-sided small print shoved at you to sign. Sometimes completely contradictory in content or incomprehesibly dense. And the norm is for you to sign. So there you are surprised and lied to. You've got earnest money, credit report fees, attorney fees, searchs and all sort of money already tied up and your only recourse is to stand up and walk away and swallow you loss.
No one in the business is truthfull up front.
MikeD: Good idea, however in our case every time we were able to get a lower rate from the S&L than we could from the two credit unions we were members of.
I suppose it depends on ones location to determine the best solution, I guess just do your homework and you will get the best loan available in your area.