My fax to Steve Atwood and why mortgages SHOULD be originated by the agencies directly

I’ve been working on this for a MONTH now!

And I’m really tired of being ignored.  So this is my last request for my clients’ $900 reimbursement of costs (appraisal and my fee) before recommending that they sue.  The lawsuit should of course include additional  damages for emotional distress and PUNITIVE damages.

10/24/10: my fax to Steve Atwood, retail production manager Provident Bank Mortgage

Ending mortgage fraud

NATIONALIZE mortgage lending and eliminate ALL commissions.

Just about every mortgage comes with thousands of dollars in profits for the most greedy and ruthless loan agents.

It’s all about SALES, convincing the borrowers to pay for the appraisal and once the borrowers have lots of time and money invested, the loan agents substantially increase (often double) their profits by increasing the interest rates or failing to lower the rates as market rates decrease.

There is simply no need to pay a commission to anyone!

The tax payers are already bailing out the bankers, the bankers’ insurers, FNMA and FHLMC, HUD, VA …

Why pay thousands of dollars in commissions to do a little paperwork?

Why should borrowers pay for the bankers’ and brokers’ advertising, Ferrari or mansion?

The borrowers SHOULD be able to apply directly with the appropriate agency.  It shouldn’t cost more than $1,500 for non recurring closing costs including agency processing fees to get a mortgage in the $400k range.

While there certainly are a few honest and competent loan agents, they should be focusing on helping borrowers to RESOLVE problems instead of covering them up.

BTW, I include myself in this category.

There SHOULD be no need for anyone to pay me to manipulate their FICO scores so they get better mortgage rates.

Getting Provident loan agent Sophia Wong to disclose the difference in rates for middle FICO scores of 720+ and 740+ was like pulling teeth.

Incredibly, she finally quoted with a 3/8% difference in the RATE!

9/28/10 Provident Bank Sophia Wong quotes mortgage rates: FICO 720+ 4.75%, FICO 740+ 4.375%

That’s $82.27/month or $29,625 over the life of the $360K  loan.

My clients have PERFECT credit.  They don’t have a single late payment, collection, public record or lien.  They’ve been on the same jobs for many years and they are good people by any standard.

The bankers designed this crazy system to exploit us and when things go wrong, we bail out the corrupt bankers with our taxes.


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