I think this is sleezy advertising.
You too? Lets do something about it.
I received this junk mail postcard in the mail.
My first question is, who sent it?
The company names used are Lincoln Capital and and Lincoln Capital Group with a California DRE license number of 01414409.
CA DRE lists a Lincoln Capital whose DBA has been canceled and Lincoln Capital Group in San Jose but neither match with the license number. The license number belongs to a broker in Bakersfield with no DRE listed DBAs.
When I called the phone was answered "Loan Department". Well folks, that really cleared things up.
What About the 4.5% Rate? When I asked for information about the rate and fees I was told that someone "a mortgage professional" would come to my house and explain. Of course I would be thrilled to invite someone to my home belonging to a company ashamed to reveal it's real name.
So if they won't give me rate information I'll have to draw my own conclusions... sorry, the very tiny black print shown on this page is unreadable and on the actual card almost. But I was able to barely make out the disclosure the advertised rate could change at any time. Anyone willing to bet it won't...
Pay $13,875 for a 4.50% Rate?
The payments for the various loan amounts on the top postcard are based on 4.50%, Interest Only loans. There is also a 07-01-09 date next to the rate disclosure in the tiny black print so, I am assuming "Loan Department" is claiming the advertised rate was available on that date. Checking back with one of my best priced, very picky wholesale lenders I found their lowest Interest Only rate was 5.125% and it cost 2.50 points more than their amortized rate. When 2.50 points are added to the points for their 4.50% amortized rate the result is 4.625 points. So maybe the rate was actually available on 07-01 if "Loan Department" or, whatever it's real name is and the "mortgage professional" coming to my home are both working for FREE. Wanna bet?
The APR in small print is shown as 4.99%. "Loan Department" did not disclose the loan amount used to compute the APR so again I must improvise and just make it $250,000. Using $250,000 the 4.99% APR requires total points and fees to be $13,875.
So how are we doing so Far... hmmmmmm
- It is questionable to me the advertised rate was ever available.
- The California Department of Real Estate requires the advertised company name and license number match exactly. They also require the company to be a legal entity. Two DRE strikes? This guy is either gutsy or really stupid.
- I believe RESPA requires the advertised rate and APR be shown in the same print size. I also believe the loan amount basis for the APR calculation must also be disclosed.
So lets look a little further
Skip 2 Payments? Well, gentle readers, that is just a damn lie. Payments are NEVER skipped in a refinance. They can be included in the loan but they are never skipped.
Prominently on the front side of Postcard: Our Current Clients Receive...
No Closing Costs... No Points.. No Title Fees... No Appraisal Fees... No Credit Report Fees... Ever again
This is ABSOLUTELY a bogus play on words. At first glance most consumers would think there are no fees but upon closer reading it appears that "Loan Department's" existing (if any) customers won't pay these fees but NEW customers probably will be required to pay.
It really could not be any other way because: if the above fees are included in the loan amount then they DO exist. Or, if Loan Department claims to pay them; based on their pricing structure there is not enough profit for Loan Department pay them.
And the conclusion is:
It appears to me Loan Department is just another lowlife predator un-intimidated by ethics, proper disclosure, RESPA or even the DRE. If "whatever it's name is" was in business three or four years ago they were, most assuredly eagerly sticking families into Option Arms and Sub Prime loans.
Active Rain, Lets get mad and take action
In any real estate market there are always predators eagar to take advantage of what for many consumers can be a confusing process. One group leaves the business or goes to jail and another sinks to fill the void.
As this is written there are almost 158,000 professionals on AR and WE can make a difference. We don't need to be policed by self serving politicians, we can and should to it ourselves. Here on AR we have a forum to expose this type of advertising wherever and whenever it appears. If this is beyond your comfort level... send the ads to me.
This kind of advertising steals our business and our reputation. This industry is our house, where we live, lets keep it clean.
Education is Consumer's Only Real Protection.
- FHA 203k Renovation Mortgage - All You Need To Know Video
- Energy Efficient Mortgages - All You Need To Know Video
- What You Should Know About APR
- How To Shop for Mortgage Rates.
- Beware of Misleading Lender Advertising
- Education is the best consumer protection
- Rates and Point Relationship Explained
Bill Ladewig
800.664.7283 (SAVE)
Bill Ladewig is a Mortgage Broker Licensed by the California Department of Real Estate 00968137
NMLS #291249
San Diego FHA and VA Home Loans Escondido Mortgages Escondido Localism San Diego FHA and VA Home Loans San Diego Localism San Diego UFMIP Escondido Mortgages Escondido Localism San Diego Mortgage Ultimate Mortgage Calculator
Good stuff, Bill. We need to put those guys through the grinder.
This is outrageous and agree with you totally.
So what can we do to get rid of this??
Patricia Aulson/portsmouth nh homes
Great stuff Bill........I always hope that the purge we're going through would eliminate these types; unfortunately I guess they'll always be another one to take the previous one's place.
I am happy to spread this information around to everyone and anyone I know. Thank you for doing such a wonderful job at breaking it down.
Thanks Sal,
Patricia: the best way to get rid of this type of advertising is to expose to the light of day. You can post their ads in your blog or send them to me an I will be happy to shine a little light on them. Or we can all post the ads. The more the merrier.
Jeff, spread their stuff with comments on your site and blog will be very helpful. Thanks.
Bill,
All of the B-paper brokers crooks are not out of business yet, they have just changed tactics.
Thank you for this post Bill! You did a great job pointing out each "error" step-by-step. Personally, I think you should make this available beyond "members only" so consumers can read it and more critically analyze the unethical postcards THEY receive.
Hi Mike, there will always be crooks and we must stand ready to expose them... again and again. Thanks for your comment.
He Wendy. Good idea, I will do it. Thanks for your comment
Its advertisements like these that give consumers the WRONG idea about what they can actually expect and I believe it is one of the big reasons for the mortgage melt down.... Now we have this same type of advertisements that make homeowners believe that their lender WILL reduce their principle and lower their payments because of the Obama plan... they even make it out to seem that they are a government entitiy...makes it much harder when you are trying to be honest with someone for them to believe you.... Unfortunately this is just one example...maybe we should all start posting false advertisements on here and exposing them for all active rain and consumers to see.... good post...
Threresa, that is exactly it. we should all start posting false advertisements on here and exposing them for all active rain and consumers to see.
It is sad that this type of advertising continues to show up in mailboxes. False misleading advertising should be a crime. You are doing the right thing by exposing this type of activity. Thank you for the post.
That's ridiculous. I felt dirty just reading that. Slimeballs like that are what ruin things for the rest of us. Thanks for sharing.
Thanks Sandy. We can never intirely stop this kind of advertising but we can sure slow it down. Post them in you blog and send me crummy adds so I can post them in mine.
Jared and Amand, me too... go me plenty pissed. So lets all join together and kick it in the head.
Great Job Bill,
I have recently started sending in complaints about some of the scammers in my marketplace. Hopefully some of them will get caught and convicted before too many people get sucked into their crap.
Good job Robert, from time to time I have turned in offending ads to authorities but nothing seems to happen. Maybe posting their junk on the Internet will help. I hope so.
Isn't this how the mess started in the first place?
Bill,
Thanks for your efforts to expose these tactics. Let's keep confronting this as best we can. I want to transition to a better lending environment, not regress to the ugly recent past.
Cindy. It sure did with the same kind of scammers and we need to nip them in the bud. Fortunately now they don't have junk product to go with their junk advertising.
Barbara: so true; your key words are "Let's keep confronting this as best we can." Together we can make the difference.
It's mortgage broker's like this that contributed to the housing crisis we are all experiencing. Thank you for sharing your post.
Bill - False advertising drives me absolutely crazy, especially since people fall for it.
April. true but we can spotlight these cockroaches so it will not happen again.
Michelle, me too. My wife thought she married a psycho when the junk card first arrived. I am a little calmer now that I have done something and she promised to cancel the ambulance.
I am surprised that they are not out of business yet. That is old school bait and switch.
Plain old Bait and Switch. Nothing gets my hackles up quicker. Will the CA dept of licensing do anything?
I can't get over the fact that they wanted to send someone to your home. My buyers very rarely meet their mortgage person in person these days, as it's all via email.
Bill, that is disgusting, plain and simple. Does it meet the fraud guidelines? Since it was mailed through the US Post Office perhaps complaining to them too. It can't hurt. I found this from the USPS for contact info:
Report fraud complaints to the fraud complaint hotline at: 1-800-372-8347 or visit the Postal Inspection Service Web site at www.usps.com/postalinspectors. For more information about National Consumer Protection Week, visit the NCPW Web site at www.consumer.gov/ncpw.
I would turn them in everywhere and anywhere I possibly could. I never read my junk mail, maybe I should start! I would also send it to your senator, congress people, anyone you can. Go get em!!!!
Brad, bait and switch will be around long after we are gone. The best we can do is make borrowers aware.
Debi, don't depend on government to clean this up because this is nothing new and they have not. When government finally get around to doing something the new laws often restrict the good guys. Our best solution is to expose the bad guys on the Internet.
Donna, I am sure some buyers miss the personal visits but in the long run it is much better. Your LO is sitting in front of the computer screen ready to answer your questions and provide advise.
Andrea, Fraud should reported to the proper authorities but you and I and everyone else in the industry can stop it in its tracks by immediately exposing it to our associates and the public on the Internet. Check you mail box and send me your real estate junk mail.
Where's the same sized APR text ???? Is anyone doing an interest only 30-year? My 5/1 Interest Only ARM crushes these rates, BUT its not 30-year fixed like these guys say. We can only hope the filtration of this business will continue to weed out the liars.
Bill we had the same thing here in the Livonia area of Metro Detroit. We had a real estate agent offering $500 for a referral
In Oregon anyone quoting rates has to list the true cost of the loan, etc. I don't do this type of advertising, so I don't know exactly what . . . but just a loan amount and monthly payment doesn't met the rules. But, if anyone was going to scam, they wouldn't really care about the rules much anyway. WOW -- this sounds very sleezy, but . . . sad to say . . . it's going to get their phones to ring.
Nice detective piece. I get so much of this crap in the mail. What a waste of paper.
DOn't they have any guidelines for false advertising or Truth in Lending?
HiBill~ This kind of criminal activity needs to be stopped. The problem is some consumers fall for these tactics and just do not know any better! That is who they prey upon. If this blog stops even one person, it is worth it!
A bit more sleuthing shows that CA DRE #01414409 belongs to Hilary Kunz. Yes, the DRE shows this person to be in Bakersfield, but do a Google search for the name and you find Hilary Kunz, senior mortgage broker with Liberty Capital Group in San Jose.
Hilary Kunz
Lincoln Capital Group
Senior Mortgage Broker
6050 Santo Road, Suite 200
San Diego, CA
United States 92124
Voice: 888-565-2216
Website: www.lincoln-cap.com
And the real kicker? The company byline is:
"Financial Transparency, honest solutions"
Unfortunately, I have received quite a number of these kinds of flyers over the last several months. Some with rates of 3% even. When I see these it is obvious that there are many loop holes or hidden costs. They probably do get some calls though and I feel bad for those that actually use these vendors.
Hi Charles, forward the next one to me. Maybe we can save a home owner or two.
OK, I'll read my junk mail in the future. Your post is really important, and posting to the public as well as members only is a great idea. I applaud you for taking this on!
Bill you are taking on a mountian, hope you can crush it to a molehill. way to go cw
Human greed pure and simple, criminals preying on the uninformed to make a quick buck and then closing shop and opening under a new name to avoid prosecution.
Great post! One of the things I despise most is the "hack" mortgage or real estate broker/agent. Having both types of companies, I have the pleasure of dealing with it almost daily. If you are interested in filing a complaint, the link to do so is here: http://www.dre.cahwnet.gov/cons_complaint.html .I have done so in the past, and the DRE was surprisingly responsive. Unfortunately, many of those above me here are right. The hacks will always be here. They just tend to surface from under their rocks more in a market like this.
I've always thought that one way to minimize some of this,and other unethical activity, is to separate the mortgage and the real estate licenses into two distinct state departments. It would avoid those that are uneducated,unethical and uncaring from easily crossing over from one side to the other. It would also make oversight more feasible.
This is the best analysis I've seen of a "junk mail" solicitation. I can't believe they expect you to invite you to their home!
thats the kind of stuff that puts us where we are now
The root of the problem is that the banks behind the lenders promoting this false advertising own the politicians that are supposed to be writing the regulations to police the problem. Therefore, until campagin contributions from any source are out lawed and we move to a public campagin financing system, nothing will ever change . . .
Re Post #33, I apologize for the typo: should read LINCOLN Capital Group and not Liberty. My own late-night mistake.
Anyone feel like turning ol' Hilary in to the CA DRE?
Way to go Sleuth for putting the broker Hilary Kunz together with Lincoln Capital Group. Thank you also for finding the company motto is "Financial Transparency, honest solutions" that is amusing
It seems appropriate to their apparent business model that DRE has Hilary's address in Bakersfield and Lincoln Capital Group in San Jose when the office and Hilary are actually working in San Diego.
Below is what Sleuth discovered
Hilary Kunz
Lincoln Capital Group
Senior Mortgage Broker
6050 Santo Road, Suite 200
San Diego, CA
United States 92124
Voice: 888-565-2216
Website: www.lincoln-cap.com
And the real kicker? The company byline is:
"Financial Transparency, honest solutions"
This sort of thing gives all of us finance guys and gals a black eye! It could also be nothing more than a venue to get leads to re-sell to brokers.
Carl, you are absolutely spot on. Public Election Funding is the only way we will ever take government back from big business and special interests.
Okay... what's next in your quest. You're talking to the choir, here.
Did you get someone in D.R.E. interested or someone in the District Attorney's office to prosecute? This behavior is illegal. Did you provoke these legal remedies?
Denny Phipps
Virginia
I could not have stated this any better myself, great job in poutlining the BS type of mailers we all seem to get at least once a week. My personal "favorites" are the ones that look like they come from the federal reserve, or IRS, etc. Shut em down!
Denny, Unfortunately RESPA is backlogged and way understaffed and, in my experience, will not take action.
The DRE has been notified. I don't think, besides DRE and RESPA there is anything else illegal for the DA to pursue even though the information is obviously very misleading and and I believe unethical.
I know I am preaching to the choir here in Active Rain but the really effective way to stop or slow down this type of advertising is to expose it to the world and that is what I am hoping will occur when other AR members take up the cause in their areas.
Thanks Jeff, send me the junk you recieve and I will give them some close attention.
Bill good points. Those loan ads always look so good when you get them. I've been around long enough to know that it is all hype. Did you give it to the DRE?
C'mon Bill, Why are you holding back ? Let 'er rip. Tell us how you really feel ! Good for you, Bill, shine some light on these scumbags !
I wish you had played it thru and let them come to your home so you could tell us how they operate at that point - - I'll bet that's the really scary, high pressure part.
Bill,
These are exactly the kind of ads I've run into in the past when my Buyer clients said, "Oh we already have a lender that's going to give us a great deal." They always ended up switching over to my lender recomendation when the final figures were revealed and the lies were exposed. I'm going to save your article and show it to my next set of clients that believes someone is really handing out free money for loans. Thanks!!!
Bryan
Let's see you're angry at an entity that sent you a $.25 card that made his phone ring? I get taking issue with the content but that's your choice not the person sending out the card. Their choice is to get the phone to ring no more no less and then get an appointment. Active rain won't submit any of my posts until I sign up although i'm an active agent in the state of Texas. It doesn't say that anywhere in their advertising. I learned that after trying to submit 3 posts on the website. So are they dirty rotten scoundrels? That's my choice to make not theirs, their job and their only job is to get people to sign up to use Active Rain.
Thanks Bryan, spread the word and we can slow this stuff down.
Al, you are assuming the public understands lending and they do not. So, in the case of this ad, it the strong picking on the weak. Although the ad would probably not influence a sophisticated borrower, most are not.
And, it costs nothing to join AR and it is a great bang for the buck you did not spend.
Bill - Thanks for your post - this is one of my "soapbox" subjects!!! Slimy business practices by anyone gets my blood boiling but the unscrupulous and illegal activity in lending drives me crazy.
An honest lender is worth their weight in gold and I am very particular about what I look for in the lenders that I work with. I counsel my clients and customers to be just as picky and vigilant in holding their lenders, insurance companies, credit card companies, etc. to high standards. Consumers do have the ultimate power - if you don't spend your money with them, they can't remain in business!
The best solution to counteract the slimeballs in the lending industry and overcome apathy in government, overcome the excuses of heavy workloads and/or lack of staff , etc. is for everyone to bombard their government officials with complaints against individuals/companies like this and to really make their opinions known about what we as voters and professionals demand in the way of regulatory diligence. Don't just rely on NAR and other organized associations to do the talking - back them up by adding our own individual voices.
It isn't enough to just send one e-mail or letter. It certainly is not effective for us to grumble among ourselves and to those closest to us. We MUST be proactive enough that they know we truly are a force to be reckoned with - and that includes getting everyone we know(the consumers in general) fired up enough to make their voices heard as well.
Polite, respectful but firm and persistent is the communication method we should all be willing to employ on a regular basis so that they can no longer ignore the issue and expect that we will do the same. Along with registering our complaints, let's offer suggestions for solutions such as researching some of the applicable laws that exist and demanding they be used or working to introduce suggestions as to how the laws can be amended if necessary or new ones that may need to be created.
This issue isn't just affecting the individual. It affects our local economy, national economy and the global economy which in turn affects survival, not just comfort and pleasure, of everyone.
Cliches they may be, but it is true that the "pen is mightier than the sword" and the "squeaky wheel gets the oil".
It is time for each of us to become mighty warriors for the greater good as well as our individual good. These steps include:
Write, call and personally interact (when possible) with the agencies and the elected/appointed representatives whose job it is to protect us from these sort of harmful business practices. Insist that the laws we have actually be enforced, and if necessary create new legislation to hold violators accountable.
Be proactive. Be an educator and an inspiration to those you come in contact with. Share what you know about the problem, whose business practices need to be cleaned up or shut down through word-of-mouth conversations, blogs, marketing pieces such as advertising and newsletters, and e-mails as we are doing here.
Most importantly, be a leader as well as an educator. Through knowledge and education, we can each make a big difference. It takes courage and, most of all, dedication to go beyond our comfort zones to bring about change and enforcement but it is possible.
Thank you, Bill, for taking the time and having the ethical convictions to bring this subject to the forum for discussion and inspiration!
Cynthia, thank you for taking the time for your thoughtful response.
This is also my "soapbox" issue. I agree that we must continue to pressure our government representatives. But government moves slowly.
I think we gain more creditability as an industry by cleaning up our own mess.
Bill,
Nice job on the detective work. All they want is for their phone to ring. I am going to look through my junk mail a little more closely to see what kind of crap is coming to me. I thought all these slimeballs were doing "free" loan modifications and running appraisal management companies now.
Doug
I'm a former mortgage banker and current agent. As most mortgage originators (loan officers and brokers) know, the APR is a crook's best friend, a false security blanket for consumers because the spread between the interest rate and APR is close together and therefore doesn't "seem that much". I could write a book about the flawed math it's based upon; but, instead of wasting time on the problem, here's the solution = Guaranteed Good Faith Estimate (or whatever you'd care to name a new GFE, TIL, HUD-1 combo document). In addition to all the other anticipated loan costs, disclose loan officer commission and broker's YSP and allow only a slight deviation from the original, initial disclosures and you'd see a lot of the shennanigans and thievery come to an end.
I actively stay in contact with my clients and get calls all the time about a mailer someone has received that seems too good to be true. And it always is. The other day I had an FHA client who got a mailer for a Streamline Refi with a rate of 4.25%. APR was listed at 4.375%. (I guess this lender is able to offer FHA loans with no MI.) Of course no costs on Streamlines and skipping a payment is always on these mailers. Time to start posting these mailers on my blog. Great idea. I'm actually putting something together that I'll be mailing to my past client database, letting them know what to look out for in these mailers.
Doug, thanks for your comment. There is a good chance one of your clients received this mailer if your office is in the San Diego area.
Todd, APR is abused big time. I developed rate software that should be available in a week or so that has an APR calculator so it can be easily checked. "Forgetting" to include MI or only including 1 day of prepaid interest are common scams.
Tim, if you are willing to send me the postcard I will also put them on my blog or if you send me the blog link I will be happy reblog yours so you retain credit.
great post. yes, we should not have misleading advertisments. They should be made to follow strict guidelines. The consumer really falls for these misrepresentations a lot of the time.
Bill - I get ads like this in the mail all the time. I know better than to believe these guys are legit. But, I really worry about the desperate and elderly people out there. Desperate people do desperate things and there are way too many crooks out there who are willing to take advantage. I hope your post reaches outside of Active Rain. It's a great warning.
I'll call my client and see if she can forward the mailer.
Ginger, you are correct, actually there are some guidelines but they are often ignored as in this example.
Pamela, the junk mail was directed to a Seniors community in Rancho Bernardo, CA. Part of my anger is exactly that was directed to a vulnerable group.
Isn't this the stuff that got us into this mess? misleading loan information, teaser rates, "ho you'll refinance way before your rate changes..." that was the norm back then and now we are paying for it. We all should report this to the Department of Real Estate, individually we can make a difference and put those people out of business... otherwise we will be the ones looking for a new job soon.
Antonio
Bill-
Glad to hear you have contacted the DRE on this. This type of misleading advertising is one of the reasons we are in the mess we are in today. I too have called on this type of solicitation to find the company does not state their name, nor will they let me speak to anyone that can tell me anything about current rates or costs.
We need to get mad. We need to stop the predatory lenders from creating new problems in this type of market.
GO GET 'EM!
Bill:
The supply of garbage in the media is endless... what an we do... just hit delete! When it comes to harming the public- we all need to put our feets down.
a freind of mine used to be a loan officer and he told me it is hard to compete against people who are willing to lie.
There are laws in place for exactly this. Unfortunately they are rarely enforced
Hi Mott, we can band together and expose these clowns on the Internet
Hi Konnie, it is difficult and that is why relationships and reputation mean everything.
France and Mark. AR provides a great place to stop this type of advertising. We just need participation.
This is what hurts our economy and residents more and more. Good looking out.
Thank you Bill, and thank you Pat Palmer, above, for the link. Is this something that should perhaps be reported to the Attorney General's office for the State?
There is one upside. These slime ball tactics stirred up the wrath of some truly professional honest people, and gave the occasion to hear from these terrific people on AR.
Thanks again for a sensational, eye opening, post!
Evil kicked out from haven .Those evil on our earth and never die.
Good job Bill. We need to protect consumers and protect the reputation of our industry too.
What an eye opener this is. I will be looking a little more close at my junk mail before I toss it.
Between this type of lie
And the lies about buyers' incomes made by loan officers on applications, etc.
And the lies by the big lenders about how business-like they were
And the lies by AIG about what a great, safe deal their securities were
And pretty soon you get:
Real foreclosures.
Real bank failures,
Real insurance companies going under,
Real bail-outs,
Real recession,
Real unemployment,
Real business failures,
Real world-wide ramifications,
Real massive federal debt,
Real troubles for our grandchildren.
And real good reasons why "white collar" crime should get blue-collar penalties ...like working on a chain-gang in the middle of winter.
This mortgage broker is a little fish in a big pond of filth.
Why should she be worried -- when so many got away with so much more.
Hey, Bill. Great post and I appreciate you bringing this to light. I am always amazed by how shady people can be and how many people fall for this sort of stuff. I guess when you are desperate you will do anything. Thanks for sharing, Jim
Usually the poor quality companies do this type of advertising.
Bill- What a kick _____ post and wow look at the comments! There are so many scams and fly by night businesses out there and they really hurt people & the Industry. I can not believe the feds, states, etc., allow this stuff (Crap) to go on in our country.
Great post and if you had posted it to one of my many groups I would have featured it right away!
Bill-well said. There are so many people out there desperate for any way to make things better with their mortgage or to buy their first home and they are the ones that get sucked in by horrible things like this. People like this need to be stopped and stopped for good.
Jim Hale, yeah, there are a few rotten fish that stink up the whole pond. The best way to clean things up is with action, shine a light. Bring things rotten to everyone's attention and AR is a great place for it.
Jim Hart: thanks
Edward and Celia, like attract like. Low life companies staffed with low life.
Robert. Thanks, I checked your groups and I don't know I missed hitting one of them, but it is never to late :)
Debra: There is deperation but I think the largest culpert is that the public, for the most part, simply do not understand how loans are quoted.. the relationship between Rates, Points and Fees and there are a few that take unseemly advantage.
Bill - I didn't read all of the comments. Did you report this company? I've forwarded several misleading advertisements and websites to the Oregon regulators.
Wow this is absolute craziness. I can't believe the extremes some people are going to. What's sad is there are a lot of people who will fall for this. Somebody needs to get this company and others like it. Thank you for the great post and for doing what you could to track them down.
I notice that the phone number is nice and big. Who needs a name when you have a room full of operators waiting to serve you?
Hi Bill ~ What I'm not getting is how you have 85 comments and you're not featured....I've flagged it for a feature....I usually don't get past the features, because there's so much good stuff to read. Not the case today and I had to look further. Good thing too, otherwise I would have missed this excellent post.
Last year my son left home and started renting. He got a steady flow of similar mail to what you're talking about here. I was there to make him aware of the pitfalls. What about someone else's sons and daughters? I want to make sure they know this is a scam too!!
Denise
Thanks Denise ~ Have your son send the junk mail to me and I will post it for everyone to view.
Hi Larry, you have a new associate. This one was forwarded to the DRE but I have not had much luck in the past. I think we need to keep the requlators informed but that is not enough.
Kim, the more people we tell about this kind of scam the less will be hurt.
Mark, a couple of scam giveaways are a small name and tiny disclosure.
Nice work Bill. They'll never shut all of these fly by night operations down, but hopefully the State will keep the pressure on. These sorts must be constantly looking over their shoulder. I wonder how these folks can get up every morning and look at themselves in the mirror?
Bill
In a time when honesty must be paramount it still comes out of the woodwork with companies and deception. Great information and post. It must have been an eyeopener when someone answered "loan department"
Bill,
All good points! Is there nothing that can be done to people who misrepresent our industry? I too am tired of having to explain this kind of advertising to my clients. I don't overprice my fees and anyone who really stops to think would understand there are fees associated with buying or refinancing a home. You can't expect the appraiser, inspector, credit agencies, mortgage brokers or title companies to work for free. And lets not even bring up state or county fees.
Glad to know someone else is fed up with this type of advertising.
There are many of us who are fed up with misleading advertising. Now is the time to do something about it. Post the ads on your blog with your comments and send them to me and I will also.
Bill,
Excellent post, no wonder we are in this mess with shady outfits that prey on the unknowing. Transparency in lending is needed and the consumer needs to be educated.
thanks,
Preying on the desperate as well! Absolutely predatory - where are the regulators? We should all make our SOI aware of these kinds of practices.
I've seen these before as well. Sometimes offering lesss than 4% interest. Of course when you call it is nothing like what it says.
Mark, Thank you and you are absolutely correct consumer education should be our first concern.
Pat, this particular piece of junk was mailed to a senior community who are known to be more vulnerable than most; which is why I find it inexcusable.
Theodora, the next one you see mail it to me, please.
I'm surprised that they can still get away with this kind of stuff, not a good thing at all. Are you able to get anywhere by notifying your state's attorney general?
Kevin & Monica, while, in my belief, this advertisement, violates common decency and buisness ethics, California DRE and RESPA regulations, but I don't think it violates California law. This may seem contradictory but the law is for attorneys to sort out.
Do not rely on others (our protectors in Gov. hehe) If you are outraged by this advertisement, take action. Expose them on your own sites... send them to me and I will certainly expose them on mine.
Bill: thank you for pointing this out and offering to be the place we can send such information to.
What about Reg. Z???
They are advertising a mortgage payment, but I don't see the APR in the graph.
This is excellent and a virtual tutorial for agents and consumers.
Bill, most people would not take the time you did to check this out. Truth be told, someone in a regulatory position should be doing this work, and hammering companies like this.
BRAVO! Bill... Your clarity, seeing through the smokescreens, is the xray vision needed in this murky mortgage market! And yes, an business that is not transparent should be highly suspect!
Janice, thank you and please send me your lending junk mail I will treat it with the reverence and respect it deserves.
Lenn, the APR is in small print but they did not also provide the loan amount it is based upon so it can be checked.
Dave, regulators are underpaid and understaffed. If we really want to end this type of advertising we must do it ourselves.
Mara, one commentator "Sleuth" found the following:
A bit more sleuthing shows that CA DRE #01414409 belongs to Hilary Kunz. Yes, the DRE shows this person to be in Bakersfield, but do a Google search for the name and you find Hilary Kunz, senior mortgage broker with Liberty Capital Group in San Jose.
Hilary Kunz
Lincoln Capital Group
Senior Mortgage Broker
6050 Santo Road, Suite 200
San Diego, CA
United States 92124
Voice: 888-565-2216
Website: www.lincoln-cap.com
And the real kicker? The company byline is: "Financial Transparency, honest solutions"
Bill,
Thank you for posting this. So many buyers are mis-lead by rate advertisement, they don't understand that it just isn't about the rate.. it's the whole package.
Hi Bill, It's true that some home buyers get swayed by the outrageous offers of some advertisements because they offer the lowest interest rate, more so now that mortgage fees become exorbitant. I always find these kinds of advertisements on newspapers. They seem to promise that home buyers like me, would not be paying anything anymore which is very suspicious. no business would venture in a zero profit deal.
Thanks for educating the readers like me about pseudo lending company operation. In instances where a home buyer is having a hard retort which options to go for, it would be wiser to consult mortgage professionals. I found this <a href="http://nelsonsousa.ca/about-us.php">mortgage broker in Alberta</a> site online and I think it would be great to try them. They offer free consultation so that customers would be aware of the real mortgage packages and government recognized lending institutions.
This is a hot topic for me right now. It's incredible and appalling how some agents that are clueless when it comes to Short Sales boast of hundreds of transactions and high closing ratios - neither metric being supported by the MLS.