First Mutual Corp. Misrepresentation of refinancing services Cherry Hill New Jersey
On approx. 12/19/07 - a representative from "First Mutual Corp", an Indian man, knocked on my door. He introduced himself and asked if I was a customer of "CIT" (mortgage co.), he had my name on this "CIT" list. I said hestitantly, "yes" and "why?". He explained that I would be elig for a gov't refinancing loan through "FMC". He made a good "sales speech". I told him that I would think about it, that I would research the company. I got a couple of phone calls begging me for my business.
Since I am concerned about my ARM loan going up in interest, I felt this would be my only solution. I recieved a call from MR and he explained and made promises which included a guarantee that I would be accepted for this loan. He added that it was illegal for a homeowner to have an appraisal w/o getting approved for a mortgage loan. This was the same statement that JB gave me. That FMC was dealing directly with the government and he would guarantee me an FHA 6%, 30 yr fixed, with 0.00 points..adding that FMC is not a broker and they do not scam people with fees. So I believed him.
I also made it clear to him that I had a bad experience w/another mortgage co., that I paid the appraisal, signed all paperwork, provided documentation and nothing happened. He knew this from the beginning. He said that it would not happen to me again, that I was approved and that everything would be fine. He asked for my credit card # to pay for the $375.00 appraisal up front. I told "MR" SPECIFICALLY that I did not want to pay the $375.00 unless I had a guaranteed approval, as I had an issue with the previous lender.
He assured me and said "we would not give you an appraisal unless you are approved". So I agreed and gave him my credit card information. The following day, the $375.00 payment was deducted from my bank account. On approx 12/26/07, JB came to my house with all of the documentation I needed to sign. He explained what documentation was needed and if I didn't have all of the documents, to just send in what I had. I agreed. The application and documents was Fedexed to them on 1/3/08.
The appraiser, "C" from "Dave Brown __", came to my house at her convenience. Even after I asked her to come on Fri, 1/4/08-she took it upon herself to do it on Thurs, 1/3/08 because as she told my husband as he was trying to fix the house a bit, "it was convenient for her". I paid for a service and it was not done at MY convenience.
I have called "FMC" for the last couple of days and have not recieved a return call back AT ALL. It is 1/18/08 today, and I have yet to recieve a call from ANYONE @FMC. I have called the office and no one picks up, the call is forwarded immediately to voice mail and I have left messages to no avail.
At this point, I want my $375.00 credited back to my bank account. I want a copy of my appraisal, as now I have to go to ANOTHER lender. I will not pay for another appraisal, as I am on a fixed income and am trying to keep my home w/my husband and 2 children. Time is running out for us and this company is complicating my situation. This is bad business practice. Again, I want my $375.00 for the appraisal and (2) months worth of mortgage payments that I needed to borrow from my 401K because I was misled by FMC ,they prevented me from going to a reputable and efficient lender. Now I don't know if I can keep my house or not....
Janet
Janelle
KP, New Jersey
U.S.A.
1 Updates & Rebuttals
Nick
Cherry Hill,New Jersey,
U.S.A.
Not a ripoff
#2UPDATE Employee
Mon, January 21, 2008
I work for the lender in question and on Friday, January the 18th at 11 PM, I happened to check my company e-mail and found the complaint filed by the applicant. After reading the complaint I opened the electronic file of the applicant (as the actual file was in our office) and reviewed the file to see what had happened. What I discovered was that the applicant's home was appraised by an independent FHA appraiser for significantly less then the payoff on the mortgage. This low appraisal made the approval now null & void as we could not lend her more then the home was worth. In spite of the fact that the lender is not obligated to refund the borrower's appraisal fee, at 11:06 PM I sent the applicant an e-mail stating First Mutual Corp. would refund the appraisal fee. I did this solely for customer service and that I felt bad for the applicant because she now appears to be stuck with an Adjustable Rate loan from a subprime lender (public record).
Upon my arrival at the office this morning, January 21st, I refunded the borrower the appraisal fee and sent a follow up e-mail to the applicant indicating that a refund had been processed and attaching a copy of her FHA appraisal to validate our position.
This is the most detail I can reveal due to the Financial Privacy Act but invite any regulatory body or consumer advocate to contact me (with a written notice from the borrower releasing my obligation under the Financial Privacy Act) and I will be happy to review the file in it's entirety.