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

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."

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 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.

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."

Scott Veerkamp: YSP and Junk Fees

You can review the dollar amount of each Junk Fee on your settlement
statement. Junk Fees will be listed as follows: Application fees,
processing fees, document preparation fees, etc. Yield Spread Premium
will be listed as P.O.C. or "paid outside of closing."

Clearly, these fees do not "protect the interest of the client."
Unfortunatelty, Scott Veerkamp collected large sums of money by
"steering" people into high cost loans with with YSP and Junk Fees.

Please take a moment to review two examples of Predatory Lending and
Loan Steering:
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)

American Liberty Mortgage

Scott Veerkamp's sister (Sheryl) worked for American Liberty Mortgage
in the REMAX Central office at Beech Grove. She helped Scott
implement deceptive lending tactics with YSP and Junk Fees at closing.