Scott Veerkamp Predatory Lending: This shows the financial impact Yield Spread Premium has on the homeowner.

Scott Veerkamp is the President of the Franklin Township School Board and a member of the National Association of Realtors. I have documentation of two loans initiated by Scott containing Yield Spread Premium...

Loan 1: Contains a $1,440 Yield Spread Premium on a $120,000 property.

Loan 2: Contains a $4,799 Yield Spread Premium on a $150,000 property.

(a) The following documentation is not an example of a loan initiated by Scott Veerkamp. I am merely providing this example to show the financial impact of YSP on the homeowner.

(b) On average, mortgage brokers receive 1% of the loan amount each time they raise the interest rate .25%. In other words, the lender pays the broker a "kickback" for increasing the interest rate on the loan.

(c) What is the difference in cost between a 6% rate and a 6.5% rate on a $200,000 loan over 30 years? Here is the answer according to bankrate mortgage calculator: -($23,414.40)

(d) On the mortgage above, the broker would receive a $4,000 kickback or (2% of the loan amount) for increasing the interest rate .5%. Therefore, a family would pay an extra -($23,414.40) over 30 years because they did not receive the interest rate they qualified for.

(e) I believe most families would prefer to invest the $23,414.40 in EDUCATION. Clearly, this makes more sense than "wasting it" with a predatory loan.

(f) Therefore, I am asking Scott Veerkamp to answer the following questions: 1. How does Predatory Lending "protect and promote the interest of the client"? 2. How does Yield Spread Premium "keep the interest of the client above all else"?

*You can find YSP on the settlement in your mortgage documents. It will be listed as POC or "paid outside of closing".

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)

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.

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."

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)  

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."

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.

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

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."

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.

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?

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.

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

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: 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.