myftef.org: Scott Veerkamp Con Game

Re: Franklin Township Education Foundation

When I filed my initial complaint with REMAX of Indiana, Jonathan
Nicholas had the following designations: NAR, CRB, CRS, and GRI.
As I mentioned earlier, my initial complaint included documentation of
Loan Steering and Predatory Lending. Likewise, I informed Jonathan
that Scott Veerkamp removed my property from the MLS without my
permission.

Please review this important information:
1. Jonathan Nicholas refused to meet with me and discuss my experience
with the REMAX Central Sting Operation. 2. Scott Veerkamp made
approximately $26,000 on a $120,000 property with a "land contract
scam." 3. Scott refused to conduct an open house on this property.
4. Scott lived "one block down the street" from this property. 5.
Jonathan Nicholas presented Scott Veerkamp with a "Lifetime
Achievement Award" for misrepresenting the value of this property and
stealing my money. 6. Scott used the award to recognize himself with
another advertisement in Christian Phone Book. 7. Apparently, this is
supposed to be an example of how to "protect and promote the interest
of your client." 8. In reality, this felt like a "mafia hit" on
behalf of the REMAX organization. 9. This "mafia hit" included the
following components: A. Loan Steering B. Predatory Lending C.
Inflated property value D. Land contract with a "due on sale" clause.
E. $26,000 "heist" for Scott Veerkamp...
REMAX agent David Bickell was the President of the Metropolitan
Indianapolis Board of Realtors (local association) in 2008. Likewise,
REMAX agent Dick Gaylord was the President of the National Association
of Realtors in 2008. Clearly, there is a "pattern of deception"
emerging with REMAX, NAR, and Loan Steering.

Please take time to review this example of Scott Veerkamp's deception:
"You can trust our Realtors to always keep your interest first and
foremost."

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)

myftef.org: Scott Veerkamp Predatory Lending

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

myftef.org: Scott Veerkamp Loan Steering

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: Deceptive Advertising

In doing some research on the Code of Ethics, I found the following
information listed on the RE/MAX International website: "The REALTOR
you hire adheres to a strict Code of Ethics and professionalism while
protecting ownership of property." "In the U.S., all of our agents
are members of their local REALTOR board and uphold the associated
strict Code of Ethics."

Please be advised that I am providing evidence of "Bait and Switch"
advertising on behalf of Scott Veerkamp and his organization. Scott
and his company 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."

Upon review, you will see two examples of "Bait and Switch"
advertising in this message. Please take time to review the following
examples...

Example #1: A $4,799 Yield Spread Premium does NOT represent "the
lowest possible interest rate." Again, I refer you to the Center for
Responsible Lending and their definition of Yield Spread Premium: "A
YSP is a cash bonus that a broker receives from a lender for placing
borrowers in a loan with a HIGHER interest rate than the lender would
accept. The higher the interest rate, the higher the premium received
by the broker." "The effect of YSP is to steal equity from struggling
families."

Example #2: A $960 application fee does NOT represent the "lowest
possible price." As discussed earlier, the National Association of
Mortgage Brokers says it is not necessary to pay an application fee.
Therefore, "the lowest possible price" for an application fee is ZERO.
With regard to advertising, the Better Business Bureau defines "Bait
and Switch" in the following manner: "A "bait" offer is an alluring
but insincere offer to sell a product or service which the advertiser
does not intend to sell. Its purpose is to SWITCH consumers from
buying the advertised merchandise or service, in order to sell
something else, usually at a HIGHER price or on a basis more
advantageous to the advertiser."

After reading this description, it is evident Scott Veerkamp meets all
of the requirements for "Bait and Switch" advertising. Here are 4 key
points to review: 1. Obviously, Scott was not sincere about offering
"the lowest possible interest rate" or "the lowest possible price" to
his clients. 2. He simply used these statements as "bait." 3. In the
next step, Scott "switches" his clients to Yield Spread Premium and
junk fees. 4. Clearly, these HIGHER fees are more advantageous to the
advertiser.

In doing some additional research on the Code of Ethics, I found the
following information listed on the Metropolitan Indianapolis Board of
Realtors website: 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."

Previously, Scott Veerkamp 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."

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

Countrywide Home Loans / Worst Company Hall Of Fame...

http://consumerist.com/2010/10/10-reasons-why-countrywide-belongs-in-the-worst-company-hall-of-fame.html

Countrywide Home Loans, NAR, and Predatory Lending

The Indiana Attorney General sued Countrywide Home Loans for deception and Predatory Lending in 2008.  Therefore, you may find it strange that Indiana NAR members recognized Countrywide as a "Platinum Sponsor" in 2009.

Please review this article about Countrywide Home Loans...

http://www.wthr.com/story/8892040/state-sues-countrywide-over-lending-practices?redirected=true

Obviously, this information makes it difficult for NAR to say Countrywide Home Loans "protects and promotes the interest of their clients."  As you can see, NAR consistently uses the Code of Ethics to mislead the public.

CRL

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

Wells Fargo, NAR, and Predatory Lending

As discussed, Wells Fargo is nationally recognized for their Predatory Lending tactics in the subprime market.  Did you know that members of the National Association of Realtors recognized this company as a "Platinum Sponsor" in 2009?

Please review these articles about Wells Fargo...

http://www.cbsnews.com/stories/2009/02/09/eveningnews/main4788018.shtml

http://www.bnet.com/blog/financial-business/ex-wells-fargo-loan-officer-details-shady-practices/1257

http://www.dailyfinance.com/story/real-estate/wells-fargo-subprime-mortgage-exit/19548625/

Obviously, this information makes it difficult for NAR to describe Wells Fargo as a company that "protects and promotes the interest of their clients."  

In my personal experience, NAR could care less about protecting the client. Their number one priority is to protect the interest of their personal bank accounts.  For this reason, NAR should revise the Code of Ethics and replace the "Golden Rule" with the "Greedy Rule."

CRL and Loan Steering

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

NAR: Golden Rule... or Greedy Rule ?

I have discovered an interesting fact about the National Association of Realtors.  When money is involved, the "Golden Rule" is quickly transformed into the "Greedy Rule."

Here are two examples...

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)  

Media Censorship, YSP, and Predatory Lending

The local media will not cover my story on YSP because REMAX spends a lot of money advertising with major media outlets.  For obvious reasons, REMAX wants to keep this information hidden from the public.  In my personal opinion, this represents an example of "media censorship."

As you know, Scott Veerkamp was allowed to express his thoughts and feelings about Toni Morrison in the traditional media.  He referred to her book (Song of Solomon) as "garbage."  Freedom of speech allows Scott to express himself in this manner.

Unfortunately, I have not been allowed to express my thoughts about Scott Veerkamp in the traditional media.  To date, I have been forced to communicate my information in the following manner:  1. Hard copy documentation  2. Email  3. Blogs  4. Twitter

You are probably wondering if I have contacted "investigative reporters" with this information.  The answer is yes...

It is obvious their voice has been silenced by REMAX and "Big Corporate Money."  The media knows I have mounds of documentation to support the information in my articles.  Nonetheless, the traditional media refuses to cover this story.

This is my belief:  If you can prove you are telling the truth, the public has a right to hear your voice.

In fact, this is the perfect example of Wall Street versus Main Street.  In this case, "Big Corporate Money" has used its influence to keep this information out of the media.  In other words, they want the people on Main Street to absorb the financial repercussions of this scam.

Here are the questions I have regarding the mortgage meltdown:  A. What keeps us from bailing out the people that were ripped-off and lied to by Predatory Lenders?  B. Why do we keep bailing out Wall Street firms that were preying on consumers?

Essentially, the government is rewarding Wall Street for preying on the public.  The consumer gets burned in two different ways:  1. Predatory Lending:  In the beginning, consumers were misrepresented with deceptive mortgages that were difficult to understand.  As you know, these mortgages were loaded with Junk Fees, Yield Spread Premium, and Prepayment Penalties.  2. The bailouts:  In the next step, the victims in this scenario were asked to bailout the companies that initiated the Predatory Lending.

Here is an example of what I am talking about:  Wells Fargo is nationally recognized for their Predatory Lending tactics in the subprime market.  They consistently used deception to steal equity from the public.  Nonetheless, the government gave Wells Fargo $25 billion in bailout funds.  The victims in this scenario received nothing from the government---yet they were asked to support the bailout. 

In summary, it is obvious that "deception" has played a critical role in this financial crisis.  Clearly, no one would agree to pay a higher interest rate if they understood the financial impact it was having on their loan...

http://www.realtor.org/home_buyers_and_sellers/how_to_avoid_predatory_lending

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

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

http://www.naca.net/predatory-lending-practices/

http://jmb27.posterous.com/email-response-from-remax-agent-dick-gaylord

http://www.realtor.org/mempolweb.nsf/pages/code

http://www.cbsnews.com/stories/2009/02/09/eveningnews/main4788018.shtml

http://www.bnet.com/blog/financial-business/ex-wells-fargo-loan-officer-details-shady- 

http://www.dailyfinance.com/story/real-estate/wells-fargo-subprime-mortgage-exit/19548625/

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

Scott Veerkamp (NAR):  "You can trust our Realtors to always keep your interest first and foremost."

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) 

www.ftcsc: Scott Veerkamp / Deceptive Lending

Upon review of my documentation, you will see that Scott Veerkamp must have "skipped class" the day they held ethics training at the National Association of Realtors.

NAR and the Center For Responsible Lending produced a brochure entitled:  "How to Avoid Predatory Lending."  Please take a moment to review this information from the NAR website...

http://www.realtor.org/home_buyers_and_sellers/how_to_avoid_predatory_lending

NAR says:  "Here are some common problems with predatory loans."  (I have included examples from my personal experience with Scott Veerkamp.) 

1. High interest rates and fees: 
Example A:  $960 application fee.  Example B:  $500 processing fee.  As discussed earlier, the National Association of Mortgage Brokers says it is not necessary to pay "application" fees and "processing" fees.  Therefore, the cost of these items should be ZERO as opposed to $1,460. 

2. Loan "Steering": 
Example A:  $4,799 Yield Spread Premium.  Example B:  $1,440 Yield Spread Premium.  The Center for Responsible Lending states the following with regard to Yield Spread Premium:  YSP is "a bonus a lender pays to reward a mortgage broker for placing or "steering" a borrower into a higher-cost loan than the borrower qualifies for."  "Yield Spread Premiums are a destructive feature of the subprime market because they give brokers an incentive to act contrary to a borrowers best interest."  "The effect of YSP is to steal equity from struggling families." 

3. Broken promises, "Bait and Switch.": 
Example A:  "As qualified professionals, we'll guide you through the entire home buying experience and assist you in being an educated buyer."  Example B:  "We will do our very best to help you get the lowest interest rates possible at the lowest possible price."  Example C:  "You can trust our REALTORS to always keep your interest first and foremost."  Example D:  "Keeping the interest of my clients above all else."  Example E:  "Serving Others First."  Example F:  REALTORS are required to "protect and promote the interest of the client" at all times.  Example G:  REALTORS are required to follow the "Golden Rule" at all times.  Example H:  "The term REALTOR has come to connote competency, fairness, and high integrity."

In addition, NAR says you should ask the following question:  "Does the lender belong to a trade association with ethics requirements for members"?  In my case, the answer is yes.  Scott Veerkamp is a member of MIBOR and the National Association of Realtors.

The article also encourages people to do the following:  "Share predatory lending "horror" stories with regulators, other consumers, REALTORS, counseling groups, housing professionals, and the media."  As everyone knows, I have taken their advice on this issue.  I believe it is important for consumers to be aware of Predatory Lending tactics in their community.

In closing, please review the articles below from the Center for Responsible Lending.  This will give you a better understanding of the "Bait and Switch" tactics some brokers use when misrepresenting their clients.

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

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

www.ftcsc: Scott Veerkamp / Predatory Broker

Please review this information from U.S. Senator Jeff Merkley regarding deceptive lending practices.  Senator Merkley makes the following statement in his letter to the President:

"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."

In addition, Senator Merkley references an article in the New York Times entitled "Predatory Brokers."  The article makes two important statements regarding predatory lending:  1. "The first step must be to outlaw the kickbacks that lenders pay brokers for steering clients into costlier loans."  2.  "The most clearly unethical form of payment is the so-called yield spread premium." 

NAR members are supposed to help their clients avoid predatory lending tactics.  The code of ethics requires them to follow the "Golden Rule" in the representation of their clients. 

If Scott Veerkamp was applying for a loan, would he select a mortgage that is loaded with yield spread premium and junk fees?  The answer to this question is obvious.  Unfortunately, Scott refuses to comply with the "do unto others" philosophy in the code of ethics.  He uses NAR as a selling tool to build trust with his clients. 

After gaining trust, he "blindsides" his clients with YSP so he can receive a kickback on their loan.

This concept is called "steering" and it can be very costly for consumers.  No one would agree to a higher interest rate if they understood the financial impact it was having on their loan.  This is why Senator Merkley refers to yield spread premium as a "secret bonus payment."

Please take a moment to review two examples of predatory lending using YSP and junk fees: 
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) 

I have provided documentation Scott collected nearly $10,000 on two separate mortgages using YSP and junk fees.  This is an average of $5,000 per loan.  This type of lending represents the extreme opposite of "protecting the interest of the client." 

As I mentioned earlier, predatory lending can cause serious financial harm to the unsuspecting public.  Therefore, I agree with Senator Merkley when he says yield spread premium has turned the home mortgage industry into a "SCAM."

Indy Christian Media

http://indychristianmedia.com/profile/ScottWaddell

Jonathan Nicholas and The REMAX Central Sting Operation...

When I filed my initial complaint with REMAX of Indiana, Jonathan Nicholas had the following designations:  NAR, CRB, CRS, and GRI.

As I mentioned earlier, my initial complaint included documentation of Loan Steering and Predatory Lending.  Likewise, I informed Jonathan that Scott Veerkamp removed my property from the MLS without my permission.

Please take time to review this important information:

1. Jonathan Nicholas refused to meet with me and discuss my experience with the REMAX Central Sting Operation.  2. Scott Veerkamp made approximately $26,000 on a $120,000 property with a "land contract scam."  3. Scott refused to conduct an open house on this property.  4. Scott lived "one block down the street" from this property.  5. Jonathan Nicholas presented Scott Veerkamp with a "Lifetime Achievement Award" for misrepresenting the value of this property and stealing my money.  6. Scott used the award to recognize himself with another advertisement in Christian Phone Book.  7. Apparently, this is supposed to be an example of how to "protect and promote the interest of your client."  8. In reality, this felt like a "mafia hit" on behalf of the REMAX organization.  9. This "mafia hit" included the following components:  A. Loan Steering  B. Predatory Lending  C. Inflated property value  D. Land contract with a "due on sale" clause.  E. $26,000 "heist" for Scott Veerkamp.

The information above provides additional documentation that REMAX and the National Association of Realtors are participating in a "pattern of deception" with the public.

Fact Sheet: Yield Spread Premiums

http://www.responsiblelending.org/mortgage-lending/tools-resources/fact-sheet-yield-spread.html