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."

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.

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.

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? 

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."

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 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.

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.