Complaint Review: Fairbanks Capital

Matt,

Thank's for the feed back. I have my first consultation this Friday with a friend who is a realtor and one of her clients. I'm doing this one free as it will help a friend and get my name out there to other realtors. I think I will ask $50.00 for one hour consultation. This would include literature to take home as well.

I've been told by a few that I'm not charging enough, but I'm not trying to get rich on each person I help. I would charge additional flat fee for those who would want me to help guide them through there paper work etc..
Anyway, thank's again for the feed back and good luck in your financial future.

I think that would be an excellent service, one well worth a reasonable fee. In the long run, it would probably save folks a small fortune. Perhaps you could offer classes for first time/potential home owners as well as private counseling. My husband and I knew practically nothing about the ins and outs of home buying and mortages and would have glady have paid for the knowledge you could offer.

Good Luck,

I am a sales manager for a mortgage bank. This is the only company I have ever sold anything for, and have been here for alomst 5 years now. I am here still because unlike a lot of other mortgage comapnies or brokers, the owner of this company won't allow anyone to use any underhanded or bait and switch tactics. As a matter of fact I have seen sales people lose there jobs for it.

Anyway, maybe this can help the person with the complaint, and any other person. So pay attention. Your about to get a free lesson that may save you thousands of dollars in your future.

Bonds, (mortgages) are bought and sold everyday. It's not personal, it's finance. How ever those who purchase your mortgage can not in any way change the terms and conditions of your note. The note, also known as repayment ryder or other such term, is the bible for your loan. Along with any other adendums or ryders to the note. These types of things may describe other terms such as pre payment penalties etc...

There are many types of pre payment penalties such as a hard pre pay, or a soft pre pay, or a graduated pre pay. The fact is there are to many to list, but all have to be within the lending laws of the state you live in and the federal lending laws as well.

I have refinanced many people over the years who, like the person complaining, refinanced to get away from the mortgage company they were unhappy with. A few of them ended up right back with the company I refinanced them away from. Not from our company, but eventually, and unfortunately for them, it just happens. Mortgage banks buy and sell to balance portfolios, and like any other business, make money. After all, no one works for free.

As far as fee's for pre pay penalties. Look at the original note you signed. You should have a copy of it. Also look for any attachments, adendums or ryders to the note. Read everything. Read it slowly as they can be a bit confusing if your not used to them as I am. Also understand that some notes are a standard form. This is the reason for adendums or ryders ect...
If there is no mention of a pre pay penalty, then you should not have one and can't be charged one.
As far as other pre paid fee's, be sure of what your looking at. Some people often mistake pre paid interest for a fee when in fact it is not. Pre paid interest is legal and very real and will be a part of any refinance on any conventional loan product with the exception of a first mortgage credit line. Those are a good product, but a whole new animal and not on the subject.

Before I close I would thank the person who filed this complaint. I have for about two weeks now been looking into working for myself full time as a Residential Mortgage Finance Consultant. My goal with this is to educate the general public on how to protect themselves from the bait and switch artists out there. Teach them what questions to ask. What to get in righting. How the business really works etc..
I think for a small fee, affordable by anyone looking to purchase or refinance a residential property, this is a service that can save a lot of people a lot of money and not have to go thru the run around that the person who filed this complaint has gone thru. After all, knowledge is your best way to protect yourself.

Does anyone out there think this would be a good thing? I would like the everyday persons opinion.

To the person complaining, good luck to you. Let me know if I can help or offer any new advise.

Your loan payment is $1,300.00, the late fee should not be more then 5% of that payment.

Remember Fairbanks is a loan servicer so they did not sell anything other then the right to service your loan.

They are collectors, you do not have a signed agreement with them but find out who really owns your loan. Now is the time to research your loan, is it a Trust? You need to know as much about your loan as you do your family history.

Good Luck

Here's an update to my report on doing business with Fairbanks Capital and their sleazy successor, Central Mortgage Company of Little Rock, AR.

Last week, as I was signing escrow papers for a re-fi which allows me to escape from these crooks, I discovered that Central Mortgage Co., which bought my mortgage less than one month ago, had tacked on a few extra thousand in "prepayment fees" to the already excessive prepayment fee claimed by Fairbanks. I have since instructed my mortgage broker and the escrow company to question these fees, and I will file suit, if necessary, to get my money back. I know it isn't be easy to get money back from bloodsuckers like these, but maybe it's worth the effort to show them that not every victim suffers in silence.

You new mortgage servicer CAN NOT change the terms of your original loan documents.

If your original loan documents state for example that you will be charged a $20 late fee after the 15th of each month, Central Mortgage Company CAN NOT charge you any more than that. They are violating the law just by telling you they will charge you $500 unless that is the late fee in your original documents.

Contact the attorney general in your California and file a complaint. Sometimes this can be done online if they have a website.

Also file a complaint with the FTC (Federal Trade Commission)online at FTC.gov .

You new mortgage servicer CAN NOT change the terms of your original loan documents.

If your original loan documents state for example that you will be charged a $20 late fee after the 15th of each month, Central Mortgage Company CAN NOT charge you any more than that. They are violating the law just by telling you they will charge you $500 unless that is the late fee in your original documents.

Contact the attorney general in your California and file a complaint. Sometimes this can be done online if they have a website.

Also file a complaint with the FTC (Federal Trade Commission)online at FTC.gov .

You new mortgage servicer CAN NOT change the terms of your original loan documents.

If your original loan documents state for example that you will be charged a $20 late fee after the 15th of each month, Central Mortgage Company CAN NOT charge you any more than that. They are violating the law just by telling you they will charge you $500 unless that is the late fee in your original documents.

Contact the attorney general in your California and file a complaint. Sometimes this can be done online if they have a website.

Also file a complaint with the FTC (Federal Trade Commission)online at FTC.gov .