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Exposing Fraud and Damages in Home Mortgage Loans
It is true that most
consumers are unfamiliar with the procedures, requirements and complexities
that entail a home mortgage loan application, such as: calculation of
interest; right to recession; appraisal fee, loan origination fee, was your
yield spread premium disclosed (“YSP”); illegal kickbacks, federal
disclosure requirements, discount points, switching rates between initial
disclosure and closing, mortgage fraud by lenders and brokers; prepayment
penalties; total interest (%); adjustable rate mortgage fraud (“ARM”); bank
fraud; flipping, the list is endless. To assist you, below are some examples
of predatory lending practices.
Our primary goal at SMS is
to provide you with a thorough evaluation, assessment and audit of your
loan. Only after a careful examination and assessment are we able to reveal
any potential predatory lending violations and abuses. Once this has been
done, we will assist you in finding competent legal counsel to take matters
further. We aim to give our clients a chance to fight back for predatory
lending abuse.
SMS’s goal and prime
objective is to expose potential fraud and damages. As part of our
services, we provide experienced mortgage audit professionals whose
responsibility it is to thoroughly examine all documentation that will
reveal fraud, deceit, unfair practices, misrepresentation, violations of the
Truth in Lending Act, violations Regulation Z, Real Estate Settlement
Procedure Act violations, violations of Regulation X, including State law
requirements within the lending industry.
All violations that are
revealed will be forwarded onto your attorney for there review. Obtaining a
thorough examination, assessment and evaluation of all your loan documents
may even stop foreclosure proceedings on your home, restore your credit
rating, provide you with damages and punitive damages for substantial
violations of Federal and State laws. This is all part of our services
undertaken by our loan auditing experts, which is to find and expose fraud
and damages. All contact information is subject to confidentiality and
privilege laws of the United States.
SOME EXAMPLES OF EXPOSING
PREDATORY LENDING AND FRAUD
Example of Interest Rate Increase:
Loan amount $200,000; Quoted 6%; 7% at Closing
$200,000 @ 7% = $1,330.60
$200,000 @ 6% = $1,199.10
Difference of $
131.50 per month
x
12 months
Increase of $ 1,578.00 per
year
Times 30 years x 30
$
47,340.00 The actual cost over the term of the loan.
Example of Yield Spread Premium (YSP) Interest Rate
Increase:
Loan amount $200,000; 3 POINTS YIELD SPREAD
In non conforming loans each point of Yield Spread
Premium will increase your interest rate by .60%. 3 points; .60% x 3 = 1.80%
increase of the interest rate. If your interest rate was 6%, 3 points of
Yield Spread would make the new rate 7.80%.
$200,000 @ 7.80% = $1,439.74
$200,000 @ 6% = $1,199.10
Difference of $
240.64 per month
x 12 months
Increase of $ 2,887.68
per year
Times 30 years x 30
$
86,630.40 Actual Cost over the Term of the Loan.
Example of Adjustable Rate Loan (ARL) Interest Rate
Increases:
This example is for
people that did not have it disclosed to them that they were being put into
an adjustable rate loan.
Loan amount
$200,000; interest rate adjustments from 8.750% to 14.750%. In a 2 year
Adjustable Rate Loan your payments are fixed for the first 24 months. At the
end of 24 months your first rate adjustment can be 3% increase; 8.750% to
11.750%. Every 6 months after that your interest rate can adjust up by 1%
every 6 months until you are at the fully adjusted (indexed) interest rate
of 14.750%.
$ 10,813.44 Actual Extra Cost to you
over the first 42 months of the Loan.
$291,144.90 Actual Extra Cost to you
over the balance of 318 months of the Loan.
$301,958.34 Actual Extra Cost to you
over the Term of the Loan.
The above are just some
examples that expose predatory lending and fraud on part of the broker,
appraiser (if appropriate), title company (if appropriate) and lending
institution. Our auditing professionals will conduct a complete and thorough
audit of all your loan documents with the specific purpose of looking for
potential or actual fraud and/or damages.
As stated in the first
paragraph of this section, SMS conducts audits on every aspect of your loan
application right through to closing. SMS also consults a variety of Federal
and State law including but not limited to, Truth-in-Lending Act (“TILA”)
disclosure laws, Regulation Z, Real Estate Settlement Procedure Act (“RESPA”),
Regulation X, High Home Loan Mortgage Act (“HOEPA”) and so on. Call SMS
today at: 561-337-5779 and fight back for being a victim of predatory lending.
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