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)  

Media Censorship, YSP, and Predatory Lending

The local media will not cover my story on YSP because REMAX spends a lot of money advertising with major media outlets.  For obvious reasons, REMAX wants to keep this information hidden from the public.  In my personal opinion, this represents an example of "media censorship."

As you know, Scott Veerkamp was allowed to express his thoughts and feelings about Toni Morrison in the traditional media.  He referred to her book (Song of Solomon) as "garbage."  Freedom of speech allows Scott to express himself in this manner.

Unfortunately, I have not been allowed to express my thoughts about Scott Veerkamp in the traditional media.  To date, I have been forced to communicate my information in the following manner:  1. Hard copy documentation  2. Email  3. Blogs  4. Twitter

You are probably wondering if I have contacted "investigative reporters" with this information.  The answer is yes...

It is obvious their voice has been silenced by REMAX and "Big Corporate Money."  The media knows I have mounds of documentation to support the information in my articles.  Nonetheless, the traditional media refuses to cover this story.

This is my belief:  If you can prove you are telling the truth, the public has a right to hear your voice.

In fact, this is the perfect example of Wall Street versus Main Street.  In this case, "Big Corporate Money" has used its influence to keep this information out of the media.  In other words, they want the people on Main Street to absorb the financial repercussions of this scam.

Here are the questions I have regarding the mortgage meltdown:  A. What keeps us from bailing out the people that were ripped-off and lied to by Predatory Lenders?  B. Why do we keep bailing out Wall Street firms that were preying on consumers?

Essentially, the government is rewarding Wall Street for preying on the public.  The consumer gets burned in two different ways:  1. Predatory Lending:  In the beginning, consumers were misrepresented with deceptive mortgages that were difficult to understand.  As you know, these mortgages were loaded with Junk Fees, Yield Spread Premium, and Prepayment Penalties.  2. The bailouts:  In the next step, the victims in this scenario were asked to bailout the companies that initiated the Predatory Lending.

Here is an example of what I am talking about:  Wells Fargo is nationally recognized for their Predatory Lending tactics in the subprime market.  They consistently used deception to steal equity from the public.  Nonetheless, the government gave Wells Fargo $25 billion in bailout funds.  The victims in this scenario received nothing from the government---yet they were asked to support the bailout. 

In summary, it is obvious that "deception" has played a critical role in this financial crisis.  Clearly, no one would agree to pay a higher interest rate if they understood the financial impact it was having on their loan...

http://www.realtor.org/home_buyers_and_sellers/how_to_avoid_predatory_lending

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-

http://www.naca.net/predatory-lending-practices/

http://jmb27.posterous.com/email-response-from-remax-agent-dick-gaylord

http://www.realtor.org/mempolweb.nsf/pages/code

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- 

http://www.dailyfinance.com/story/real-estate/wells-fargo-subprime-mortgage-exit/19548625/

http://iphone.indystar.com/posts/22137

Scott Veerkamp (NAR):  "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) 

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."

Indy Christian Media

http://indychristianmedia.com/profile/ScottWaddell

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.

Fact Sheet: Yield Spread Premiums

http://www.responsiblelending.org/mortgage-lending/tools-resources/fact-sheet-yield-spread.html