New Century Mortgage Misrepresented, Misled, Falsified and Fabricated Un-Ethical Conduct ripoff Irvine, California
Mortgage Fraud & Predatory Lending in the Antelope Valley!!! * Documents available upon request by the Court.
4/15/2006 With 20 people with us and counting, this is what we came up so far:
VIOLATIONS FOUND IN OUR LOAN DOCUMENTS
1-Adjustable Interest Rates- Misrepresented the terms of the adjustable rate provisions of our loans, including misrepresented how the interest rate for the loan would in fact adjust. No disclosure whatsoever that the adjustable rate loans included a provision that the interest rate will never be lower than the initial rate of the loan.
2- Fabricated/Forged Income- Even after furnishing required pay stubs but in the application form we later found out that the amount was more than what the pay stub had. Informed broker who in turn said after you refinance the loan the next time that should take care of it
3-Representation Regarding Future Refinancing- we can refinance and get a lower rate/better term to get rid of our higher ones which we can only have at this time due to our credit qualifications- this was one of their statements.
4- Value of home is way more than market value. Cannot sell home at this time. Negative equity. Appraisal was inflated.
5- Points and Fees- charged exorbitant closing costs without timely and adequate information as to the purpose they imposed on our loans.
6- Reported the matter to New Century and they in turn sold the loan to another Co.
7- After finding out what exactly our Rights as Borrowers are we found they have violated each and every letter of The Borrowers Bill of Rights.
Compliance being the key issue given the Truth in Lending Act and Regulation Z, there is no excuse for these widespread practices that seem to never cease. Well enough is enough. We are not taking this to the expense of our own homes. Let the court of Law lay down Justice once and for all. All we need to do is take our best step forward and the rest is Due Process.
We will never cease whether we lose our homes or not till these culprits are put behind bars. Someone has got to pay and may it be them this time.
If by any chance you have the time to pull out your Loan Documents Extending far back to 3 years and very throughly go over them page by page starting with the HUD 1 make a list of what you just found out. If you have any questions pls. call anytime 24/7. The home you save may be your own.
Robert
palmdale, California
U.S.A.
4 Updates & Rebuttals
Steve
Corona,California,
U.S.A.
New Century is not responsible for this
#5Consumer Suggestion
Sun, September 10, 2006
Hey Robert, Steve here. You and I talked on the phone last week and you faxed me some loan docs to review. Let me give you a little info regarding New Century and their loans. I am very familiar with their products, underwriting and procedures, because we use them about 8-10 times a month.
New Century is strictly a wholesale lender. They do NOT choose fees, pricing, points, YSP, prepayment penalties, income, disclosures, documentation, etc. to the borrower. It is NOT their responsibility. ALL(100%) of this is originated, disclosed, priced, managed by the BROKER of this loan who has the contact with the borrower.
The BROKER is the person or company that interviews the borrower, completes the credit application, gathers financial information, helps the borrower choose the loan product, orders the appraisal, creates and provides disclosures and ultimately submits the complete loan file to New Century for underwriting and finally funding. The broker is compensated by New Century from the Fees, points, YSP that the BROKER specifies, not New Century. The BROKER is the entity that is responsible for those problems you were describing in your post.
Also, it is the BROKER that decided to place the loan with New Century, very likely because the borrower has some pretty bad credit problems. The broker could have given the loan to several other sub-prime lenders like ((( competators names redacted by ror)))to name a few.
If you want to get familiar with New Century, you can go to newcentury dot com. Their rates, programs, matrices, guidelines are all available for public knowledge.
One last thing about appraisals that consumers rarely know about until it happens to them. Sub-prime lenders (New Century, and those listed above) have a rigorous appraisal review process. They all ready know that their borrower has bad credit, and very likely is taking a loan that is a high percentage of the homes value. The lender carefully reviews the appraisal specifically looking to see if it has been OVER appraised. Not necessarily fraudulantly over-appraised, but by error, or the appraiser's opinion. I have personally seen that New Century will CUT the APPRAISED value down to a number that they believe is a safer risk. Sometimes it affects the loan, sometimes not.
In conclusion, the problems you describe in your post are NOT the creation or responsibility of New Century, but belong on the doorstep of the broker. That is who you need to be going after, not New Century.
Steve
Corona,California,
U.S.A.
New Century is not responsible for this
#5Consumer Suggestion
Sun, September 10, 2006
Hey Robert, Steve here. You and I talked on the phone last week and you faxed me some loan docs to review. Let me give you a little info regarding New Century and their loans. I am very familiar with their products, underwriting and procedures, because we use them about 8-10 times a month.
New Century is strictly a wholesale lender. They do NOT choose fees, pricing, points, YSP, prepayment penalties, income, disclosures, documentation, etc. to the borrower. It is NOT their responsibility. ALL(100%) of this is originated, disclosed, priced, managed by the BROKER of this loan who has the contact with the borrower.
The BROKER is the person or company that interviews the borrower, completes the credit application, gathers financial information, helps the borrower choose the loan product, orders the appraisal, creates and provides disclosures and ultimately submits the complete loan file to New Century for underwriting and finally funding. The broker is compensated by New Century from the Fees, points, YSP that the BROKER specifies, not New Century. The BROKER is the entity that is responsible for those problems you were describing in your post.
Also, it is the BROKER that decided to place the loan with New Century, very likely because the borrower has some pretty bad credit problems. The broker could have given the loan to several other sub-prime lenders like Fremont, Decision One, First Franklin, Encore,Option One, Meritage, ResMae to name a few.
If you want to get familiar with New Century, you can go to newcentury.com. Their rates, programs, matrices, guidelines are all available for public knowledge.
One last thing about appraisals that consumers rarely know about until it happens to them. Sub-prime lenders (New Century, and those listed above) have a rigorous appraisal review process. They all ready know that their borrower has bad credit, and very likely is taking a loan that is a high percentage of the homes value. The lender carefully reviews the appraisal specifically looking to see if it has been OVER appraised. Not necessarily fraudulantly over-appraised, but by error, or the appraiser's opinion. I have personally seen that New Century will CUT the APPRAISED value down to a number that they believe is a safer risk. Sometimes it affects the loan, sometimes not.
In conclusion, the problems you describe in your post are NOT the creation or responsibility of New Century, but belong on the doorstep of the broker. That is who you need to be going after, not New Century.
Robert
Palmdale,California,
U.S.A.
Fiduciary Duty Breach
#5Consumer Suggestion
Sun, September 10, 2006
The shift of blame pointing US the borrowers for Trusting these Industry insiders to look at our best interest is no excuse to mislead, misrepresent, falsify and take advantage of. Dont you think? We signed the Loans in Good Faith. We gave our Broker all our information- financial and personal.
Based on that we expected accuracy and a Loan that best fits our needs. Turns out everything they did was to qualify the Loan program that best fit their pockets, on our expense. Just like any part of the Loan Document that needed signatures, yes one of them was a release- Broker gets away from what he did. Right? wrong. Fraud is fraud.
We dont go to the Doctors office when we are sick only to tell the Doc what to do.
We are not the Lenders/Brokers. We are the clients. How the hell would we know how a Loan is put together. We werent taught that in school. If we did there wont be anymore Brokers.
A signature done in good faith is not valid if done with a gun pointed to our heads or if we signed away our life's long hard work.
Tell me another flimsy excuse to be carefull of.
No wonder mortgage fraud/predatory lending is so huge- they hide behind loopholes in the law. then blame people for signing. Not everyone is as smart as you.
We wanted a home not fraud.
Tom
Laguna Hills,California,
U.S.A.
Did you sign your papers?
#5Consumer Suggestion
Fri, August 25, 2006
Since all your loans funded I am assuming your signed your papers thus doing 1 of 2 things.
1. Releasing the broker of everything because you signed papers stating you were disclosed all this information.
or
2. Knowingly allowed the broker to do this, thus incriminating you for mortgage fraud. I would be careful on how you approach this because you could be found guilty for fraud as well.