MIBOR: Code of Ethics "Bait and Switch"

Scott Veerkamp removed my property from the MLS after I filed a complaint with MIBOR.  After spending some time reviewing my options, I contacted another REMAX agency to see if they would put my property back on the market.  The REMAX agency I contacted refused to list my property.

It is important to note that I was not living in this property.  The people at MIBOR and REMAX knew it was costing me $1,000 per month.  They seemed to feel it was permissible for Scott Veerkamp to remove my property from the MLS without my permission.  In other words, MIBOR and REMAX declined to offer me any assistance in this difficult situation. 

They watched Scott Veerkamp's sting operation collect $26,000 at my expense.  This is another example of MIBOR using the "Golden Rule" as a bait and switch tactic.

REMAX Central: Open House ?

Scott Veerkamp had an "open houses" link on a previous website.  Nonetheless, he refused to conduct an open house on the property I listed with him in Wanamaker, IN.  (Property value $120,000)

Scott lived in the same neighborhood where the property was listed. This is the same property he used to collect approximately $26,000 in profit with his "Bait and Switch" strategy.  This deceptive strategy involved a land contract with a "due on sale clause."  As I mentioned earlier, this experience felt like a "mafia hit" on behalf of The REMAX Central Sting Operation.

Apparently, Scott felt $26,000 was not enough money to justify "driving one block down the street" to conduct an open house.  As you might expect, REMAX of Indiana presented Scott Veerkamp with a "Lifetime Achievement Award" for his effort in collecting $26,000 at my expense. 

Please note:  Jonathan Nicholas (NAR) was informed about the shady business tactics of Scott Veerkamp.  I included documentation of Loan Steering and Predatory Lending in the complaints I filed with his office.  Jonathan Nicholas presented Scott Veerkamp with additional "awards" after reviewing evidence that REMAX Central was preying on the unsuspecting public.

Email response from REMAX agent Dick Gaylord / NAR President 2008

Please review my email and the response I received from Dick Gaylord (NAR.)  As I said before, this is a mass scale "Bait and Switch" operation with REMAX and the National Association of Realtors.  

Jim,

    The process for ethics complaints works where there are complaints within the jurisdiction of the Association.

    As you mentioned to me you have taken your complaint to numerous entities and none will take it on.

    I am sorry I cannot help.  This matter falls under the jurisdiction of the local association and I have no authority to get involved.

    I wish you the best in your future real estate endeavors.  My personal advise:  don't let this consume you;  get on with your business and life.

    I am off to D.C. for NAR's midyear meetings.

         Dick Gaylord

 ----- Original Message -----

From: "jim bruggenschmidt"

Sent: 05/10/2008 07:31 AM AST

To: dick@dickgaylord.org

Subject: NAR Ethics Complaint

Attn:  Mr. Dick Gaylord / NAR President

I have contacted several different members of the Indiana Association

of Realtors (State Board.)  In addition, I have contacted a member of

the Board of Directors with MIBOR.  To date, I have not found anyone

willing to discuss my complaint with me.  As you know, NAR members say

they are dedicated to "protecting and promoting the interest of the

client."

I have not found this to be the case in Indiana.  Unfortunately, it

would appear that Scott Veerkamp continues to use "predatory lending"

tactics with his customers.  As you know from reading my letter, there

is a possibility that Scott has caused financial harm to over 1,000

clients in the last 5 years with the use of YSP.

I find this information to be disturbing...

Sincerely,

Jim Bruggenschmidt

REMAX: "Team Building"

Scott Veerkamp had the following statement on a previous website...

"Scott is nationally recognized by REMAX International and has been featured as a speaker on Team Building on the REMAX training system that was broadcast to REMAX offices nationwide."

Here are the questions I have regarding this statement: 
1. Was Scott Veerkamp teaching REMAX realtors how to use their clients as a "profit center" at closing?  2. Is manipulation and deception part of the "Team Building" process at REMAX International?  3. Was Predatory Lending and YSP included as part of the training system?

I find it strange that REMAX continued to recognize Scott with specific awards when they knew he was preying on the unsuspecting public.

YSP and Prepayment Penalties

Please review these two statements from the Center for Responsible Lending regarding YSP and prepayment penalties...

Yield Spread Premium:  1. "Many lenders pay this premium---essentially a kickback to brokers---only when the loan has a prepayment penalty that helps trap the borrower in the higher-cost loan long enough for the lender to recoup the cost of the payment to the broker."

2. "Because YSP's encourage prepayment penalties, these kickbacks not only make loans more expensive from the beginning, they also effectively penalize borrowers for developing good credit over time."

Obviously, this information makes it difficult for NAR to say Yield Spread Premium "protects and promotes the interest of the client."

Excessive Interest Rates

The Center for Responsible Lending estimates that excessive interest rates cost families $2.9 billion each year.  CRL states:  "When a borrower loses a home to foreclosure, society pays the price in the drop in surrounding property values and lost tax revenues."

Perhaps this is one of the reasons for the lack of funding in our school systems...

http://www.wthr.com/story/12029420/growing-school-districts-suing-over-funding

ISBA Code of Ethics

The Indiana School Boards Association has the following statement written in their Code of Ethics:  "A School Board member should meet his responsibilities to his community."

Is Scott Veerkamp meeting his responsibilities to his community when he "steers" people into high cost loans? 

NAMB: Code of Ethics

Please review this information regarding the National Association of Mortgage Brokers policy on processing and administration fees: 

NAMB says processing and administration fees are a violation of their Code of Ethics "because they are generally not related to any actual service performed by a broker."

In addition, NAMB says it is not necessary to pay an application fee on your mortgage.

School Board Censorship / Toni Morrison

http://iphone.indystar.com/posts/22137

www.ftcsc: Scott Veerkamp / Preying On Consumers

David Knight, David Wright, and Sheryl Owen grabbed a "ringside seat" at REMAX Central closings.  They helped Scott Veerkamp prey on the unsuspecting public with deceptive lending tactics.

I find it interesting that Scott refers to himself as a Christian Businessman.  He wants people in his community to believe he is praying for them.  In reality, he is preying on them.  Please do not be fooled when he describes himself as a "Christian Super Servant."

Upon review, you will see he uses the following entities to gain trust with the public:  1. NAR Code of Ethics.  2. ISBA Code of Ethics.  3. Indian Creek Christian Church.  4. Christian Phone Book. 

In my personal experience, Scott will literally say anything to gain access to your money.  Here is the perfect example:  "You can trust our REALTORS to always keep your interest first and foremost." 

Again, a $4,799 Yield Spread Premium represents the extreme opposite of this statement.

Scott Veerkamp's "Switching" Technique

"Going In and Going Out" is a term I use to describe the mortgage
transaction I had with Scott Veerkamp. This term is synonymous with
Bait and Switch. Please take a moment to review the following
explanation:

The "Going In" phase typically represents a statement from Scott's
website or his affiliation with NAR. As I mentioned earlier, this
statement is often used as "BAIT."

The "Going Out" phase shows the financial result for his client. As
you might expect, this is where the "SWITCH" takes place. Please
review the following "Going In and Going Out" examples... ( *
indicates junk fee )

Group A: 1. "Serving Others First" going in---and a $500 "processing
fee" going out.* 2. "Keeping the interest of my clients above all
else" going in---and a $960 "application fee" going out.* 3.
"Dedicated to providing the finest service possible" going in---and a
$150 "underwriting fee" from the lender going out.* 4. Scott
describes himself as a "Super Servant" going in---and Scott
"blindsides" his client with a $4,799 "Yield Spread Premium" going
out. 5. "Protecting and promoting the interest of his client" going
in---and a $409 "administration fee" from the lender going out.* 6.
Following the "Golden Rule" going in--and $1,920 in "discount points"
going out.* 7. "Someone You Can Trust" (public awareness campaign)
going in---and thirteen examples of "deception" and "financial harm"
going out.

Group B: 8. "Be truthful in all communications with the public" going
in---and Scott collects $6,239 in "secret bonus payments" and YSP
going out. 9. "Fairness and high integrity" going in---and a $35
"electronic filing fee" going out.* 10. "We go the extra mile to help
you achieve your goals" going in---and a $425 "administration fee"
from the lender going out.* 11. "We'll make your home buying or
selling experience a pleasant one" going in---and a $250 "document
preparation" fee going out.* 12. "You can trust our REALTORS to
always put your interest first and foremost" going in---and a $1,440
"Yield Spread Premium" going out. 13. "You need a professional team
that understands the industry and is positioned to stay ahead of the
game" going in---and a $50 "courier fee" going out.* 14. "We will do
our very best to help you get the lowest interest rates possible at
the lowest possible price" going in---and a whopping $10,938 in junk
fees and "kickbacks" going out.

Hopefully, this information will give you a better understanding of
Scott's "switching" technique. He consistently does the opposite of
what he says he is going to do. As you can see, he often receives a
large financial sum for "steering" people into high cost loans.
Unfortunately, these large financial gains are coming at the expense
of the public.

In summary: The examples above total $10,938 in junk fees and
kickbacks, or $5,469 per loan. Scott collected $6,239 in Yield Spread
Premium from the lender. As discussed earlier, the Center for
Responsible Lending says YSP "steals equity from struggling families."
Nonetheless, Scott describes this scenario as: "Keeping the interest
of his clients above all else."

NACA: Predatory Lending / YSP

National Association of Consumer Advocates (Predatory Lending Information):
http://www.naca.net/predatory-lending-practices/

Elizabeth Warren: Yield Spread Premium Information...

Elizabeth Warren:
http://www.law.harvard.edu/news/2007/10/03_warren.php

Elizabeth Warren: Consumer Protection Watchdog

Elizabeth Warren:
http://seattletimes.nwsource.com/html/nationworld/2012930329_warren18.html

CRL

http://www.responsiblelending.org/mortgage-lending/research-analysis/ib-ysp-110507-final.pdf

Legal Information: Yield Spread Premium

We believe that the circumstances surrounding the issuance of Yield
Spread Premiums are potentially actionable under state and federal
laws, as long as the claims are brought within 1 to 2 years from the
occurrence.

Any inquiries can be directed to the following:
Price Waicukauski & Riley LLC
Re: Yield Spread Premiums

The Hammond Block Building
301 Massachusetts Avenue
Indianapolis, IN 46204

Scott Veerkamp: Deceiving The Public

I was referred to Scott Veerkamp by a lifelong best friend. My friend
knew Scott from Indian Creek Christian Church.

I must admit, I was shocked when I discovered Scott was a con artist
and a Predatory Lender. Unfortunately, Scott Veerkamp uses
"Christianity" as a tool for gaining trust with the public. As you
know, I have already provided documentatation of "Bait and Switch"
advertising in Christian Phone Book.

Scott deliberately misled the public when he presented the following
statement on one of his websites...

"As a Christian business owner, it truly is the desire of my heart to
not be a "Superstar," but rather a "Super Servant" with the hope of
achieving excellence by keeping the interest of my clients above all
else."

REMAX Realtors: Disclosure of Yield Spread Premium

Regarding disclosure of Yield Spread Premium, would this be a typical
conversation between a REMAX Realtor and a client?

REMAX Realtor: I can get you a loan at 4.5%, or I can get you a loan
at 5%. I will receive a kickback on the 5% loan for increasing your
interest rate. Which loan do you prefer?

Client: Please give me the 5% loan so you can receive a kickback on
my mortgage. In addition, I want to pay thousands of extra dollars
over the life of my loan so you can deposit the kickback in your bank
account.

REMAX Realtor: Thank you for understanding and appreciating the
benefits of YSP.

Client: You are welcome. As you know, there is a high probability
that REMAX will honor you with a "Lifetime Achievement Award" for your
effort in assisting me with Yield Spread Premium.

REMAX Realtor: You are correct. REMAX requires us to follow a strict
Code of Ethics in the representation of our clients. In fact, we are
required to follow the "Golden Rule" at all times. This is the reason
we are presented with "Lifetime Achievement Awards" each year.

Client: Congratulations on your accomplishments. However, I have one
final question: Should I use Countrywide Home Loans or Wells Fargo to
provide the funding for my predatory loan? I noticed these companies
were listed as "Platinum Sponsors" with members of the National
Association of Realtors.

I think you get the picture... In my opinion, I believe it is more
appropriate to use the word "disguised" when referencing YSP. This is
more realistic than using the word "disclosed."

Why would anyone agree to a higher interest rate if they understood
the financial impact it was having on their mortgage? For obvious
reasons, this is why Senator Merkley refers to Yield Spread Premium as
a "secret bonus payment" and a scam.

Please note: The Center for Responsible Lending and the National
Association of Realtors produced a brochure entitled: "How to Avoid
Predatory Lending." The brochure refers to Yield Spread Premium as
Predatory Lending.

As I mentioned earlier, MIBOR says "Realtors are held accountable for
their ethical behavior." Who is holding REMAX and the National
Association of Realtors accountable for deliberately misleading the
public?

NAR: The National Association of Ripoffs

http://www.ripoffreport.com/Search/scott-veerkamp.aspx

REMAX Agent Pam Aguirre (NAR)

Pam Aguirre is a member of the Metropolitan Indianapolis Board of
Realtors. I mailed a complaint to Pam regarding Scott Veerkamp's
Predatory Lending tactics. The complaint included documentation of
Loan Steering with YSP and Junk Fees. (She refused the delivery of my
complaint.)

This response provides additional evidence that REMAX and the National
Association of Realtors are participating in a "pattern of deception"
with the public. As I mentioned earlier, MIBOR states the following:

1. "REALTORS shall be careful at all times to present a true picture
in their advertising and their representations to the public." 2.
"The Code of Ethics is a promise to the public that when dealing with
a real estate agent who is a REALTOR, they can expect honest and
ethical treatment in all transaction- related matters." 3. "Only
REALTORS pledge to abide by the Code of Ethics, and only REALTORS are
held accountable for their ethical behavior."

The public can expect honest and ethical treatment in all transaction-
related matters...? Clearly, this is a mass scale "Bait and Switch"
operation with REMAX and the National Association of Realtors.

REMAX Central: $26,000 In Profit On A $120,000 Property

Again, I want to emphasize Scott Veerkamp made approximately $26,000
in profit on a $120,000 property. Please understand this is a real
number. It is not a "misprint."

Scott accomplished this profit using a "Bait and Switch" strategy with
a REMAX Central listing in Wanamaker, IN. This is why I refer to his
company as the REMAX Central Sting Operation. In my personal
experience, this felt like a "mafia hit" on behalf of the REMAX
organization.

I mailed a hard-copy complaint to 13 different contacts affiliated
with the REMAX organization. This includes REMAX of Indiana and REMAX
International. I was consistently "brushed aside" and ignored by
REMAX corporate and members of the National Association of Realtors.
Obviously, Scott Veerkamp was not focused on "protecting the interest
of his clients." In reality, he used his customers as a profit center
to expand his personal bank account.

Please take a moment to review the following information:
1. REMAX of Indiana presented Scott with a "Lifetime Achievement
Award" after reviewing my complaint. 2. My complaint included
documentation of Loan Steering and Predatory Lending. 3. Jonathan
Nicholas (NAR) presented the award to Scott Veerkamp. 4. In return,
Scott used the award to recognize himself with another advertisement
in Christian Phone Book.

Scott Veerkamp: "Bait and Switch" Advertising

Scott ran the following advertisement in Christian Phone Book: "We
will do our very best to help you get the lowest interest rates
possible at the lowest possible price."

As discussed, Yield Spread Premium and Junk Fees represent the
"extreme opposite" of the statement above. In fact, Predatory Lending
puts the public at risk for serious financial harm. This is the same
public Scott Veerkamp claims to be "Serving."

REMAX Agent David Bickell (NAR)

David Bickell was the President of the Indianapolis Metropolitan Board
of Realtors in 2008. According to MIBOR: 1. "REALTORS shall be
careful at all times to present a true picture in their advertising
and their representations to the public." 2. "The Code of Ethics is a
promise to the public that when dealing with a real estate agent who
is a REALTOR, they can expect honest and ethical treatment in all
transaction- related matters." 3. "Only REALTORS pledge to abide by
the Code of Ethics, and only REALTORS are held accountable for their
ethical behavior."

Clearly, there is a "pattern of deception" emerging with REMAX and the
National Association of Realtors...

NAR and Wells Fargo

Wells Fargo is nationally recognized for their Predatory Lending
tactics in the subprime market. Nonetheless, Indiana NAR members
listed this company as a "Platinum Sponsor" in 2009.

NAR and Countrywide Home Loans

The Indiana Attorney General sued Countrywide Home Loans for deception
and Predatory lending in 2008. Nonetheless, Indiana NAR members
recognized Countrywide Home Loans as a "Platinum Sponsor" in 2009.

Articles Regarding Loan Steering and Predatory Lending

Loan Steering Lawsuit:
http://www.huffingtonpost.com/2010/06/30/countrywide-lawsuit-racia_n_630661.html

Subprime Loan Steering:
http://industry.bnet.com/financial-services/10003019/ex-wells-fargo-loan-offi...

Loan Steering Lawsuit:
http://www.dailyfinance.com/story/real-estate/wells-fargo-subprime-mortgage-e...

REALTORS and Yield Spread Premium:
http://www.realtyresourcesil.com/Seven-Signs-of-Predatory-Lending.asp

National Association of Realtors and Predatory Lending:
http://www.realtor.org/home_buyers_and_sellers/how_to_avoid_predatory_lending

Center for Responsible Lending:
http://www.responsiblelending.org/mortgage-lending/research-analysis/ib-ysp-1...

Center for Responsible Lending:
http://www.responsiblelending.org/mortgage-lending/tools-resources/ib011-YSP_...

Senator Jeff Merkley and Yield Spread Premium:
http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-...

NAR Code of Ethics:
http://www.realtor.org/mempolweb.nsf/pages/code

Scott Veerkamp: YSP and Junk Fees

You can review the dollar amount of each Junk Fee on your settlement
statement. Junk Fees will be listed as follows: Application fees,
processing fees, document preparation fees, etc. Yield Spread Premium
will be listed as P.O.C. or "paid outside of closing."

Clearly, these fees do not "protect the interest of the client."
Unfortunatelty, Scott Veerkamp collected large sums of money by
"steering" people into high cost loans with with YSP and Junk Fees.

Please take a moment to review two examples of Predatory Lending and
Loan Steering:
Loan 1: (Property value $150,000) A. $4,799 yield spread premium B.
$500 processing fee C. $250 document preparation fee D. $50 courier
fee E. $35 electronic filing fee F. $425 administration fee (lender
fee)

Loan 2: (Property value $120,000) A. $1,440 yield spread premium B.
$960 application fee C. $1,920 in "discount points" (paid to Scott
Veerkamp) D. $409 administration fee (lender fee) E. $150
underwriting fee (lender fee)

REMAX / Fiduciary Responsibility

REMAX claims their agents have a fiduciary responsibility to their
clients. Are inflated rates and REALTOR "kickbacks" in the best
interest of the client?

Senator Jeff Merkley: Yield Spread Premium and Predatory Lending

Please review this Information from Senator Jeff Merkley regarding
Yield Spread Premium. Senator Merkley refers to YSP as a "secret
bonus payment."

http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F

Scott Veerkamp: Inflated Interest Rates

Have you ever known anyone that deliberately searches for a higher
interest rate when they want to borrow money? This is what Scott was
doing with Yield Spread Premium. He was helping his clients search
for a higher interest rate.

REMAX Agent Dick Gaylord (NAR)

Dick Gaylord was the President of the National Association of Realtors
in 2008. I told him Scott may have misrepresented over 1,000 people
in a 5 year period with YSP kickbacks.

In fact, I included this information in a written complaint I mailed
to his office in California. To my knowledge, Dick made no effort to
protect the public from Scott Veerkamp's manipulation and deception.

REMAX International

REMAX International was fully aware of Scott Veerkamp's Predatory
Lending tactics. To my knowledge, REMAX corporate made no effort to
protect the public from his abusive lending.

American Liberty Mortgage

Scott Veerkamp's sister (Sheryl) worked for American Liberty Mortgage
in the REMAX Central office at Beech Grove. She helped Scott
implement deceptive lending tactics with YSP and Junk Fees at closing.

Jonathan Nicholas / REMAX of Indiana

Jonathan Nicholas was with REMAX of Indiana when I alerted him about
Scott Veerkamp's Predatory Lending tactics. To my knowledge, REMAX
did nothing to prevent Scott from "stealing equity from struggling
families."

"The REMAX Central Sting Operation"

David Knight and David Wright helped Scott Veerkamp implement his
"Bait and Switch" tactics at closing. REMAX Central deliberately
misrepresented their clients with Yield Spread Premium and Excessive
Fees.

Countrywide and Wells Fargo / Ripping Off Homeowners

Countrywide and Wells Fargo Articles:

http://industry.bnet.com/financial-services/10009902/countrywides-foreclosure-scam-its-not-the-only-lender-ripping-off-homeowners/

REMAX: Scott Veerkamp "Bait and Switch" Tactics

In my case, Scott Veerkamp made approximately $26,000 in profit on a
$120,000 property. He was able to accomplish this profit with a
complex "Bait and Switch" tactic involving the National Association of
Realtors.

It is very important for consumers to be educated about YSP and
"steering" payments to brokers. NAR recommends alerting consumers,
the media, and REALTORS when discovering Predatory Lending tactics in
your community. Therefore, I am taking their advice and forwarding
this information for your review.

Please note: Scott Veerkamp was affiliated with the RE/MAX
organization when I wrote the articles in Ripoff Report. Therefore, I
filed complaints with RE/MAX of Indiana and RE/MAX International
regarding his Predatory Lending tactics. They responded in the
following manner: RE/MAX presented Scott Veerkamp with a "Lifetime
Achievement Award." In return, Scott used the award to recognize
himself with another advertisement in Christian Phone Book.

Countrywide Home Loans / Loan Steering

Please review this information regarding the financial impact of "Loan
Steering":

http://www.huffingtonpost.com/2010/06/30/countrywide-lawsuit-racia_n_630661.html

http://www.responsiblelending.org/mortgage-lending/tools-resources/ib011-YSP_Equity_Theft-0604.pdf

NAR: "Protecting the Client"...?

NAR says REALTORS are required to "protect and promote the interest of
their client" at all times.

NAR: "Golden Rule"...?

NAR says REALTORS are required to follow the "Golden Rule" at all times.

NAR Code of Ethics

According to NAR: REALTORS are required to "put the interest of the
client ahead of their own at all times."

Center for Responsible Lending: Equity Theft

According to CRL: "The effect of Yield Spread Premium is to steal
equity from struggling families."

Scott Veerkamp: (Franklin Township School Board Member)

Predatory Lending is a major contributor to the economic turmoil we
are currently experiencing.

Here is an example of what I am talking about:
Scott Veerkamp / Predatory Lending (Franklin Township School Board Member.)

Please review this information from U.S. Senator Jeff Merkley
regarding deceptive lending practices:
"Steering payments were made to brokers who enticed unsuspecting
homeowners into deceptive and expensive mortgages. These secret bonus
payments, often called Yield Spread Premiums, turned home mortgages
into a SCAM."

The Center for Responsible Lending says YSP "steals equity from
struggling families."
1. Scott collected nearly $10,000 on two separate mortgages using YSP
and junk fees. 2. This is an average of $5,000 per loan. 3. The median
value of the properties was $135,000. 4. Clearly, this type of
lending represents a major ripoff for consumers.

http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F

Scott Veerkamp: Predatory Lending Blog

Scott Veerkamp: Predatory Lending Blog: Scott Veerkamp: NAR / "Bait and Switch" Example: "In doing some research on the Code of Ethics, I found the following information listed on the RE/MAX International website: 'The REALTOR you..."