Complaint Review: Citizens Tricounty Bank - Dunlap Tennessee

What I believe to be a SMOOTH PREDATORY LENDER.

CITIZENS TRICOUNTY BANK.

The bank delivers their pitches of fair dealing and standards of good banking practice to the consumer, but rarley does so.

Citizens tricounty bank, is in desperate need of some serious schooling on ethics, which will be a separate case against this bank. And then the bank having to deal with the federal government on issues of the laws broken and the ethics committee will more than likely have some questions for this bank.

Within a 5 month period I was allowed to (under pressures, coersion and false pretenses) buy over $100,000 , not including finance charges and fees in real estate. Then lied to about the separate loan of $15,000, where flipping, bait and switch, flood zones, that led to the distruction of my very small business.

Loan officers willingness to give loan to construction crew monies, I never signed for or give authorization for. Not asking for proof of income nor permission to get a credit report, this bank knew nothing of my ability to pay for these loans. What I thought was a blessing from GOD turned into this banks abilty to capitalize ,AGAIN, on the lower income families. I have notes at the end of these laws, there are more laws that have been broken , but I'm listing a few, simply because I am sending this as email to the bank, not giving away my whole case.

As in tennessee code .18. H.R.4423 : To protect homeowners with substantial equity interests in their mortgaged principal residences from the loss of their homes through mortgage foreclosure when forbearance can reasonably be extended by the mortgage holders, to provide for the protection of the equity interests of homeowners in cases of foreclosure, and for other purposes. Provides that a borrower is presumed to be able to repay the loan if, at the time the loan is made, the borrower's scheduled monthly payments on the loan, combined with the scheduled payments for all other disclosed debts, do not exceed 50% of the borrower's monthly gross income. The statute requires the lender to verify the borrower's ability to repay the loan by adopting the following practices:

The borrower must give the lender a statement outlining personal income and expenses.

The lender must verify this information using tax returns, pay stubs and other prudent means.

The lender must get a credit report regarding the potential borrower.

(Considering I never signed anything that would give this bank the authority to check my credit, and they never checked proof of income, the bank had no idea what my credit scores were, nor would they ever know what my income was.)

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Filed for intro on 02/19/2003

SENATE BILL 743 By

Crutchfield

HOUSE BILL 1076

By Sargent

AN ACT to amend Tennessee Code Annotated, Title 45 and Title

47, relative to certain lending practices.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Title 45, Chapter 13, Part 1, is amended by

adding the following language as a new, appropriately designated section:

(a) No mortgage or home equity loan closing may be conducted at the

home of the borrower or at any residence unless it is impossible or unreasonably

difficult for the borrower to travel to another location for the closing because of a

physical infirmity or other condition that is fully disclosed in writing, signed by the

borrower prior to the closing.

(b) In the event that it is necessary to conduct the closing of a mortgage

or home equity loan at the home of the borrower, such closing shall be

conducted by a licensed attorney or an independent third party, not related to the

borrower or to the lender.

SECTION 2. Tennessee Code Annotated, Section 45-13-108(a), is amended by

inserting the following new, appropriately designated subdivision:

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(7) Recommending to a borrower or potential borrower, that such borrower

should default on a loan for the sole purposes of refinancing such loan at a profit to the

licensee, if there is no benefit to the customer or borrower.

SECTION 3. This act shall take effect upon becoming a law, the public welfare requiring

it.SB0203

00079718

(all 3 closings were done in my living room, and the loan officer that created the loan was the one closing the loan which again is in clear violation of these laws,)

Filed for intro on 02/06/2003

HOUSE BILL 21 By

Turner M

SENATE BILL 203

By Dixon

AN ACT to amend Tennessee Code Annotated, Title 45 and Title

47, relative to predatory lending.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. This act shall be known and may be cited as the "Tennessee Predatory

Lending Prevention Act".

SECTION 2. (a) The legislature finds that:

(4) Predatory lenders tend to target groups that can least afford to be

stripped of their assetslower income families, minorities, and elderly citizens. (i am lower income, if i was not i wouldnt be here.)

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(5) Tennessee must act to protect its residents from the most abusive

loan practices.

(b) This act is enacted to protect the equity and property of homeowners, provide

needed consumer protections, and safeguard the economic vitality of our state.

SECTION 3. Tennessee Code Annotated, Title 47, Chapter 23, Part 1, is amended by

adding the following language as new, appropriately designated section:

47-23-107.

(a) As used in this section, unless the context otherwise requires:

(1) "Annual percentage rate" means the annual percentage rate for the

loan, calculated according to the provisions of the federal Truth In Lending Act

(15 U.S.C. 1601, et seq.), and the regulations promulgated thereunder by the

Board of Governors of the Federal Reserve System, as such act and regulations

are amended from time to time.

(3) "Flipping" means knowingly refinancing an existing home loan when

any of the following occurs: ( only 1 month after the original home loan).

(A) More than fifty percent (50%) of the prior debt refinanced bears a

lower interest rate than the new loan.

(.mine was actually higher)

or has

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(5) "Home loan" means a loan, other than a reverse mortgage transaction,

where the principal amount of the loan does not exceed the conforming loan size

limit for a single-family dwelling as established from time to time by the Federal

National Mortgage Association and Federal Home Loan Mortgage Corporation, and

the loan is secured by a mortgage or deed of trust on real estate upon which there is

located or is to be located a structure or structures, designed principally for

occupancy of from one (1) to four (4) families, which is or will be occupied by a

borrower as the borrower's principal dwelling. Home loan does not include an openend

line of credit as defined in Part 226 of Title 12 of the Code of Federal

Regulations.

(6) "Lender" means any entity that originated, or acted as a mortgage broker for,

more than five (5) home loans within the previous twelve (12) months.

(7) "Points and fees" means:

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(1) No lender shall:

(A) Recommend or encourage non-payment on an existing loan or other

debt prior to and in connection with the closing or planned closing of a home

loan that refinances all or any portion of such existing loan or debt.

(B) Compensate, whether directly or indirectly, coerce, or intimidate an

appraiser for the purpose of influencing the independent judgment of the

appraiser with respect to the value of real estate that is to be covered by a

home loan or is being offered as security according to an application for a

home loan. ( this is something my attorneys are checking into seeing as the flood zone was an issue).

(C) Leave blanks in any loan documents to be filled in after they are

signed by the borrower.

(2) No lender shall require or allow the advance collection of a premium, on a

single premium basis, for any credit life, credit disability, credit unemployment, or

credit property insurance, or the advance collection of a fee for any debt

cancellation or suspension agreement or contract, in connection with any home

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loan, whether such premium or fee is paid directly by the consumer or is financed

by the consumer through such loan. For purposes of this section, credit

insurance does not include a contract issued by a government agency or private

mortgage insurance company to insure the lender against loss caused by a

mortgagor's default. ( this to is something my attorney is looking into... very weird an insurance company has settled on flooding).

(c)

(1) No home loan may contain a scheduled payment that is more than

twice as large as the average of earlier scheduled payments during the first seven

(7) years of the loan. This provision does not apply to a payment schedule that is

adjusted to the seasonal or irregular income of the borrower, or a bridge loan with a

maturity of less than twelve (12) months that requires only payments of interest until

the entire unpaid balance is due. ( this is considered as a balloon payment and within 4 years i would have to come up with over $75,000 to cover both loans).

(6) No high-cost home loan may contain a provision that permits the lender, in its

sole discretion, to accelerate the indebtedness. This provision does not prohibit

acceleration of the loan in good faith due to the borrower's failure to abide by the

material terms of the loan. ( as a new law ,my attorney will also look into this).

******(7) A lender may not pay a contractor under a home improvement contract from

the proceeds of a high-cost home loan unless the instrument is payable to the

borrower or jointly to the borrower and the contractor, or, at the election of the

borrower, through a third-party escrow agent in accordance with terms established in

a written agreement signed by the borrower, the lender, and the contractor prior to

the disbursement.******( this law was clearly in violation and happened to me, i have all the proof).

(8) A lender may not offer a home loan or refinace while engaged in the practice of

flipping.( another clear violation of tennessee law).

(10) A lender may not originate a home loan without first receiving

certification from a counselor approved by the United States Department of Housing

and Urban Development, a state housing financing agency, or the regulatory agency

which has jurisdiction over the lender, that the borrower has received counseling on

the advisability of the loan transaction.( i never seen anything or did anything with HUD.)

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(d) The provisions of subsection (c) do not apply to a loan purchased by, and in

conformity with, the underwriting guidelines and servicing procedures of the Federal

National Mortgage Association.

(e)

(1) This act may be enforced by a private cause of action under the consumer

protection act, title 47, chapter 18, part 1.

(2) This act shall be enforced by the commissioner of financial institutions. The

commissioner shall promulgate such rules and regulations in accordance with the

uniform administrative procedures act, title 4, chapter 5, as are necessary to

implement and administer compliance with this act.

SECTION 4. If any provision of this act or the application thereof to any person or

circumstance is held invalid, such invalidity shall not affect other provisions or applications of the

act which can be given effect without the invalid provision or application, and to that end the

provisions of this act are declared to be severable.

SECTION 5. This act shall take effect on July 1, 2003, the public welfare requiring it.SB2740

01039324

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Filed for intro on 01/22/2004

SENATE BILL 2740

By Trail

AN ACT to amend Tennessee Code Annotated, Title 45 and Title

47, relative to predatory lending.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Title 45, is amended by adding the

following as a new, appropriately designated section:

45-__-___.

(a) No lender shall engage in the unfair act or practice of flipping a home loan.

Flipping a home loan means the making of a home loan that refinances within sixty

(60) months an existing home loan of the borrower when the new loan does not have a

reasonable, tangible net benefit to the borrower, considering all the circumstances,

including the terms of both the new and refinanced loans, the economic and noneconomic

circumstances, the purpose of the loan, the cost of the new loan, and the

borrower's circumstances. ( i dont see a tangible benefit, and neither dos my attorney, seeing as i was over the appraised value of my home when the bank flipped the home loan, and my attorney also will argue that this bank stripped the equity from my home by refinancing so fast, another clear violation).

(b) As used in this section, lender means any person who in the regular course of

business makes a home loan. Lender shall also mean any person brokering a home

loan, which shall include any person who, for compensation, paid directly or indirectly,

solicits, originates, processes, places or negotiates home loans for others or offers to

solicit, originate, process, place or negotiate home loans for others or who closes home

loans which may be in the person's own name with funds provided by others and which

loans are thereafter assigned to the person providing the funding of such loans.

(c) A violation of this section shall be construed to constitute an unfair or deceptive

act or practice affecting the conduct of trade or commerce under the Tennessee

Consumer Protection Act, in title 47, Chapter 18, and as such the private right of action

remedies under such act shall be available to any person who suffers an ascertainable

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loss of money or property, real, personal, or mixed, or any other article, commodity, or

thing of value wherever situated as a result of such violation.

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring

it.

victim

south piitsburg, Tennessee
U.S.A.