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Mortgage company in hot water over FTC violations

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Mortgage Professional America | 03 Jul 2013, 07:00 AM Agree 0
A leading refinancer for veterans' home mortgages has been slapped with a $7.5m fine for violating Do Not Call provisions
  • Mike | | 03 Jul 2013, 09:51 AM Agree 0
    It's about time. I'm in the mortgage industry and companies like these, of which there are many, need to be put out of business. Eagles and flags all over their websites implying an affiliation with the VA. Refinancing veterans out of great fixed rate mortgages into ridiculous adjustable mortgages. It should be criminal, not civil. Take the USAA commercials all over the air right now. There's an implication from the way the ads are structured that the people in the ad only became "eligible" to use USAA after a certain level of service in the armed forces. That's just not it USAA?
  • Wm Matz | | 03 Jul 2013, 10:19 AM Agree 0
    USAA is only for military/dependents. It used to be restricted just to officers, but it has made enlisted eligible recently. I'm a 40 year member.
  • Jan | | 03 Jul 2013, 10:21 AM Agree 0
    I have personally seen these ads and they are VERY deceptive. I have even had to talk my own customers out of doing this with them. I had one customer that had closed and then called me during the recission period. We faxed them the Notice of Right to cancel from my office. They were charging him almost $6,000 in closing costs and putting him into an adjustable rate from a fixed rate. His payment was hardly even going down. Imagine how many borrowers they convinced to go through with this. I hope that fine goes to the borrowers they screwed but we all know that won't happen.
  • Mark | | 03 Jul 2013, 10:22 AM Agree 0
    one down and 99,999 more to go
    Since they won't follow the rules that WE follow, then hopefully the FTC will step to the plate and start going after everyone that thinks they are above the law. I cannot believe that it took so long 5.4 m calls
    How about 100 x $16,000.00 = $1,600,000.00
  • Bill | | 03 Jul 2013, 10:45 AM Agree 0
    I am a mortgage compliance examiner and have received direct mail from these folks once a week for over a year! Deceptive prevails in their print advertisements as well. Is there some implication that USAA in involved with these people? I would find it hard to believe that USAA would tolerate such nonsense and besides, USAA has their own, well run, mortgage company. Not sure how USAA got brought into this discussion.
  • Mike | | 03 Jul 2013, 11:24 AM Agree 0
    To be clear; no, I'm not implying that USAA is affiliated with this other company in any way. Whether it's USAA or any other mortgage company; I simply don't like the "inference" that they are affiliated with the VA or "endorsed" by the VA. The VA simply guarantees to the lender in case of mortgage default. They don't mortgage money nor do they endorse any particular mortgage company. I have no problem with USAA otherwise. Frankly, I welcome competition from USAA. I can beat their rates and fees easily.
  • Jess | | 03 Jul 2013, 12:56 PM Agree 0
  • Wm Matz | | 03 Jul 2013, 01:53 PM Agree 0
    Bill, USAA was dragged in by Mike's false claim about their membership requirements. Their current CNBC ads only address membership and accurately note that it must be earned by military service. None of those ads discuss mortgages or state/imply any VA connection. USAA is consistently rated one of the top financial services companies in US. They are in no way connected to the Florida telemarketing firm, and mentioning them in the discussion borders on defamation.
  • Bill | | 05 Jul 2013, 09:07 AM Agree 0
    Wm: Could not agree with your comments more. I am a 45 year member of USAA and have always been impressed with their outstanding services, integrity and price. It may just be one of the all-time great US companies and they seriously do things well...and right!
  • Big Mike | | 08 Apr 2015, 04:42 PM Agree 0
    sadly I work very briefly for MIC as a "so called mortgage officer" felt like I needed to take a shower every time I got off work. Sleazy outfit with sleazy people.
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