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Mortgage company conned customers about savings -- CFPB

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Mortgage Professional America | 13 May 2015, 06:10 AM Agree 0
The CFPB is suing a mortgage payment company, alleging it misled customers about interest savings they could gain from participating in a payment program.
  • | | 13 May 2015, 10:37 PM Agree 0
    In 2010, NBA made the decision to do something no other biweekly administrator, that they are aware of, has done. They commissioned a CPA firm accredited by the Association of Certified Fraud Examiners to conduct an audit of their internal procedures, specifically relating to their biweekly program called the Interest Minimizer. This was done to demonstrate that NBA does in fact operate with 100% integrity in 4 important areas:
    1. NBA's savings estimates are Accurate
    2. Funds are protected by FDIC insured banks
    3. Funds are remitted to lenders on time
    4. NBA's programs operate as indicated in contracts
    Go to and click on the "Gold Seal" at the top of the home page for the official audit report.
    Also, go to the Why Us page and click on "The Facts About NBA" - "The Heart of NBA" - "Customer Survey" - "Testimonial Videos"
    NBA does NOT take advantage of consumers with false promises of savings on their mortgage. NBA's heart and passion has always been for the consumer, not the lender.
    Even consumers who use NBA's service for only 1 year will save MORE over the term of their mortgage than what they paid to NBA in fees.
  • | | 13 May 2015, 10:37 PM Agree 0
    Recently NBA analyzed its 100 oldest active customers and found that to mid-April 2015, they had saved a combined $3.5 million in interest charges with only a combined $128,000 in fees. This equates to about $27 in interest savings for every $1 in fees, a 2,700% return.
    NBA is the only biweekly administrator that provides a 100% savings guarantee with its Loan Audit Shield. NBA provides their customers with an audit of their mortgage on an annual basis upon their request to confirm their savings and to uncover any lender errors, which have occurred many times. These lender errors would most likely not have not been realized by the customer had NBA not provided the audit.
    NBA has a 97.3% customer satisfaction rate. A nationwide survey completed by the Nielsen Group in 2015 revealed that 88% of borrowers do not pay an extra payment each year on their own to equal an automated biweekly program. This has been updated from the prior 99% statistic.
    Only the first extra biweekly debit is retained as the setup fee (for 15 year mortgages, it is only half of a biweekly debit). ALL of the remaining extra debits are directed 100% toward the customers mortgage principal. Some administrators hold the extra debits till the end of the year, NBA does NOT. NBA submits them to the lender on the next payment cycle. Also, most administrators earn interest off the customers funds while they hold the funds, NBA does NOT. Many years ago NBA chose not to earn interest off thier customers funds to provide complete protection to their funds.
  • | | 13 May 2015, 10:38 PM Agree 0
    NBA surveyed over 1,350 customers who have been active on the Interest Minimizer biweekly program. The results of the survey:
    1. 99.4% of customers would recommend the Interest Minimizer program to someone else.
    2. 98.7% said Yes that NBA is providing them all that stated they would receive from the Interest Minimizer biweekly program.
    NBA is striving for 100% satisfaction in all areas, but they realize that not every company is perfect. Please be sure to check out the "Heart of NBA" section on their website to understand the heart and passion of NBA's president Daniel Lipsky. The savings benefits that all biweekly programs provide are focused solely on benefiting the customer, not the lender. With all humility, if there is any customer that feels NBA has harmed them in any way, please understand that NBA will absolutely make things right. NBA has a 97.3% customer satisfaction rating and hope that one day it will be 100%. With the dedication NBA has for their customers, it is possible. The only true measure of NBA's success is the larger and larger amount of confirmed interest savings that all their customers have achieved. Without this proven measure of success, NBA has failed.
    Again, NBA recently analyzed their 100 oldest active customers and found that
    to mid-April 2015, they had saved a combined $3.5 million in interest
    charges with only a combined $128,000 in fees. This equates to about
    $27 in interest savings for every $1 in fees, a 2,700% return.
  • | | 13 May 2015, 10:38 PM Agree 0
    NBA will soon be providing a detailed response to the CFPB allegations. NBA has absolutely nothing to hide and welcomes any reporter (with an open and honest heart please) who would want to speak with NBA. Licensed in over 40 states, NBA has state examiners in their facility every year from all around the country and has proven itself to be completely transparent regarding its operations.
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