Complaint Review: MIBOR

Rip-off Report:  MIBOR / "Predatory Lending Agent" Scott Veerkamp 

In doing some research on the Code of Ethics, I found the following information listed on the RE/MAX International website:  "The REALTOR you hire adheres to a strict Code of Ethics and professionalism while protecting ownership of property."  "In the U.S., all of our agents are members of their local REALTOR board and uphold the associated strict Code of Ethics." 

Please be advised that I am providing evidence of "Bait and Switch" advertising on behalf of Scott Veerkamp and his organization.  Scott and his company ran the following advertisement in Christian Phone Book:  "We will do our very best to help you get the lowest interest rates possible at the lowest possible price." 

Upon review, you will see two examples of "Bait and Switch" advertising in this message.  Please take time to review the following examples... 

Example #1:  A $4,799 Yield Spread Premium does NOT represent "the lowest possible interest rate."  Again, I refer you to the Center for Responsible Lending and their definition of Yield Spread Premium:  "A YSP is a cash bonus that a broker receives from a lender for placing borrowers in a loan with a HIGHER interest rate than the lender would accept.  The higher the interest rate, the higher the premium received by the broker."  "The effect of YSP is to steal equity from struggling families." 

Example #2:  A $960 application fee does NOT represent the "lowest possible price."  As discussed earlier, the National Association of Mortgage Brokers says it is not necessary to pay an application fee.  Therefore, "the lowest possible price" for an application fee is ZERO.

With regard to advertising, the Better Business Bureau defines "Bait and Switch" in the following manner:  "A "bait" offer is an alluring but insincere offer to sell a product or service which the advertiser does not intend to sell.  Its purpose is to SWITCH consumers from buying the advertised merchandise or service, in order to sell something else, usually at a HIGHER price or on a basis more advantageous to the advertiser."

After reading this description, it is evident Scott Veerkamp meets all of the requirements for "Bait and Switch" advertising.  Here are 4 key points to review:  1. Obviously, Scott was not sincere about offering "the lowest possible interest rate" or "the lowest possible price" to his clients.  2. He simply used these statements as "bait."  3. In the next step, Scott "switches" his clients to Yield Spread Premium and junk fees.  4. Clearly, these HIGHER fees are more advantageous to the advertiser.

In addition, Scott Veerkamp has deliberately misled the public with statements posted on his website.  Please review 3 more examples of "Bait and Switch" advertising:  1. "Serving Others First."  2.  "Keeping the interest of my clients above all else."  3. "You can trust our REALTORS to always keep your interest first and foremost."

Please note:  Yield Spread Premium and junk fees represent the "extreme opposite" of the statements listed above.  In fact, predatory lending puts the public at risk for serious financial harm.

In doing some additional research on the Code of Ethics, I found the following information listed on the Metropolitan Indianapolis Board of Realtors website:  1. "REALTORS shall be careful at all times to present a true picture in their advertising and their representations to the public."  2. "The Code of Ethics is a promise to the public that when dealing with a real estate agent who is a REALTOR, they can expect honest and ethical treatment in all transaction- related matters."  3. "Only REALTORS pledge to abide by the Code of Ethics, and only REALTORS are held accountable for their ethical behavior." 
 
It is obvious Scott Veerkamp refuses to abide by the rules and regulations set forth in the NAR Code of Ethics.  Unfortunately, he consistently uses false and misleading information in his "representations to the public."