RIPOFF: Is Scott Veerkamp honoring his fiduciary responsibility to his clients?

Download Veerkamp_loyalty_and_fiduciary.pdf

On a previous website, Scott posted the following information regarding his commitment to his clients: (a) Loyalty to clients. (b) Fiduciary responsibility to clients. (c) Truthfulness in statements and advertising.

Regarding his statements, please take time to review all the bullet points on his website. Upon review, it is obvious Scott is not being truthful with the information he is presenting. Clearly, Scott is using false statements to mislead the public with "Bait and Switch" tactics.

Here is an example of his deception...
http://narrealtorbaitandswitchblog.blogspot.com/2012/12/consumer-alert-scott-veerkamp-uses.html

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."

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

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

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? 

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 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: 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.

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..."