You know, I know some people who are born and raised here 40 years old and can’t speak or read the legalese used in that loan paperwork.

Oh yeah, and what do you have to say about Wells Faggo’s “affiliated lender program”, where an originator poses as a mortgage banker, but is really a high-ranking real estate agent (draper & kramer, landlord of half of chicago downtown) who uses sham brokerages? Wells Faggo refers people to D&K’s mortgage division, First Advantage, who has an employee or two that also run their own brokerage.

Guess what? The “sham” brokerage guy gets an agreement signed by the borrower that it will “find” a lender, although the lender has already been found (D&K), then at closing the D&K guy (same guy as the “sham” brokerage guy) shows a YSP paid to the sham (by D&K), and BOTH D&K and the sham get paid SEPARATE “processing fees” (paid out of closing funds), as well.

Oh, by the way, the “sham” brokerage ceases to exist after about a year, and was never licensed. It is clear that D&K collected all of the funds itself – and the YSP is most likely split with the “referrer” Wells Frago.

Don’t even get me started with the $475 paid to the appraiser for coming up with the exact same predetermined value as the originator stated, $417,000 – wow, the exact limit that Fannie Fae will insure at.

Alan, get out of ur lina work and get a real life.

Thank you for your comments, BigCityLoans.

That is EXACTLY what happened to me, I got caught up in a shell game and it feels good to have MY PERSONAL situation validated and not tossed into a heap of those who were looking to defraud the banks or use the system.

The fact of the matter I asked the LO exactly what she was being paid and she referred me to the Loan Origination fee, and said that was it. I knew nothing about the YSP or the prepayment penalty. The prepayment penalty in my loan documents appears at the very top of the second page of a document on which the first page is half empty. The 1st page reads MERS in bold letter centered in the middle and explains that if I pay my principal in advance I won’t be penalized. At the very top of the next page is very confusing language which, when defined by a professional, explains the percentage points (not dollars but points!!!!) I would be asessed if I paid off my entire loan before a three years period.

I, myself, being unfamiliar with the industry would have never known what it meant. But even so, I asked so many questions that LO seemed very frustrated with me and that made me feel very uncomfortable and wary. Also, I didn’t like the margin or the rate — but please understand this is all 20/20, my putting together all of the feelings I had and problems which came up.

When I tried to walk away from the deal and rescind, after I FOUND the right to recission papers in my closing documents because they certainly DID NOT POINT IT OUT TO ME, he broker told me he would “massage” the loan — I kept asking WHAT DO YOU MEAN BY MASSAGE and he kept trying to explain it in a number of ways, EVERY WAY BUT BY TELLING ME THE TRUTH , which now I understand meant he was going to buy down the loan with his YSP — he reduced his YSP by over $10K so I WOULD close on the loan but of course, never told me about the prepayment penalty.

What kind of business traps people into toxic loans by penalizing them with a huge monetary cost if they try to PAY EARLY????

I wouldn’t give a damn about this loan and the mistakes I made IF I COULD GET THE HELL OUT OF THE LOAN W/O BEING FINANCIALLY SLAUGHTERED!

But now their are no more products out there being offered for the likes of me, and thousands of others caught in the same trap.

So the pitch: Don’t worry, you can refi out of the loan in two or three years, this is just for right now and look at how much money you’re saving was a BIG FAT LIE!!!!

It seems plainly unethitical to me, but I’m not in the business.

The reason why I didn’t just walk into a bank and do it that way?

I didn’t know there was a difference. I thought it was all the same players within the same pool. I tried to contact the woman who did my previous loan for months but couldn’t find her, she had moved on from the bank she worked on.

I spoke to a person who owns three brownstones and had been in the “game” for over ten years and ask him advice on what to do and he said that “they’re all the same, looking to make a buck”.

So I asked the questions of this mortgage broker that I thought needed to be asked and I was lied to over and over.

I don’t know about others but THAT’S MY STORY.

Do you know for a fact that jumbo 30-year fixed paid more to the broker than SA/OA ? I was under impression that incentive was geared toward these land mine loans rather than vanilla fixed ones.

No … JacMac … you are not ignorant … you got caught up in the “shell game” that was being promoted by several lenders to mortgage brokers. You … and … many thousands of others.

But don’t use those fancy, sarcastic terms when you’re talking about my home, and the possible loss of it because I have been defrauded.

I went to different mortgage brokers. One had my paper work for a couple of months and said that my credit was so good he was trying to find the right loan for me and the guys in his office were fighting over it.

He came back with a loan from CW but I didn’t like the looks of it — mind you, I had no experience with loans, didn’t know a YSP from my ABCs and didn’t understand what an ARM really was.

You can call me niave or stupid if it floats your boat and makes you feel better but that’s the short end of it — I was ignorant.

I foolishly believed the brokers WOULD inform me. I asked questions and tried to understand what they were saying.

I previously refinanced with a very nice Loan Officer, I paid the closing costs, $12K and she consolidated my original note, and the second mortgage that was earning %12.99 into one loan with a nice payment, no neg am.

I was lucky and didn’t know it. She was honest. I thought she was just doing her job.

I didn’t believe the brokers who defrauded me were mystics. I thought they were HONEST. I thought they actually meant what they said, and did have my best interst at heart.

Like I said you can call me all the names in the book if you want to, if it makes you feel better but that was the situation. Period.

It’s too bad that I didn’t meet up with someone like Dana Joseph (and I am NOT being sarcastic.)

I would have rather they turn me down for a loan ten thousand times than be in the situation I am in now, thank you very much.

I have always paid my bills on time and in full, I have perfect credit, so what the hell do you mean by “fax in the night” — I never said that.

I have a jumbo loan, so no, it doesn’t meet conventional FANNIE/FREDDIE guidelines.

Your own loan … i assume that you did your due diligence and went to several lenders prior to closing with the “fax-in-the-night” brokers … so … either your application did not meet conventional underwriting guidelines (Fannie / Freddie) or you believed that the brokers you chose were the “mystics” of the mortgage world and would work wonders for you … unfortunately for you … they were not … could not … and … did not … yet … you closed.

As far as YSP … a broker has the potential to earn more YSP from full doc Fannie / Freddie loans than with a stated Alt-A or subprime programs … while at the same time providing their clients with better rates … so … i have to believe that there is more to your story.

As far as “reasonability” of income … salary.com gives a range at best … did you use the low end, high end or a gross up of the high end …use of credit … i believe CW had a no tradeline program … assets … what were your seasoning requirements … 30 days? — just because everyone else was committing “white collar crime” … not an excuse for CW to become part of the pack.

That being said, as it is said often when a buyer says she/he’s been defrauded, no one FORCED Countrywide to close on stated loans, and to say, well everyone else was doing it is just childish.

The loan brokers I dealt with overstated my income by $8,000.

How?

Well, I dealt with them only by fax. The sent me the signature document of the application claiming I was only signing to lock in my rate.

What did I know? I foolishly trusted them. At the closing, I got a copy of an illegible copy of the application which states, if you look real closely at it, that my income is a wapping $14k a year. I gave them all of my 1099s and my income statements. What did they do with them?

The insentive of a huge YSP I’m sure lead them to go with a stated doc instead, and of course they walked away with the money, $14,662 and I’m lefting with the crappy loan.