kickinbrick: Scott Veerkamp Misrepresents The Public

Loan Steering:  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."

1. Here is the formula:  Yield Spread Premium and excessive interest rates = loss of tax revenues from mortgage defaults.  2. Clearly, this is one of the reasons for the lack of funding in our school systems.  3. I find it Ironic that Scott Veerkamp has not paid his taxes and FTCSC wants to sue the state over a "funding formula."  4. In other words, Scott wants taxpayers to pay for the lawsuit going in---and Scott feels no responsibility to pay his own taxes going out.  5. On a scale of 1-10 Scott Veerkamp's level of integrity is at ZERO.

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

CRL and Loan Steering

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

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

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

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

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