Complaint Review: Investors Finance Inc. - Rancho Bernardo California

I referred clients to IFI with the promise of the HOMR program. I felt the idea was not only great but it would help a lot of homeowners, I have been going on this site from time to time reading the complaints and voicing my concerns to my IFI rep but I was always given an excuse as to why things were moving so slow. I didnt feel that this was a scam because IFI had strict underwriting guidelines and if they were only interested in the upfront fees why be so picky?
Now I definately feel that IFI is a scam because my client just recieved a "Revocable Trust Agreement". If any IFI clients get this DO NOT SIGN IT. consult an attorney. I didnt understand it, so I contacted IFI with all of my questions. The guy couldnt give me answers and got frusterated when I kept pressing him, he eventually hung up on me. What made matters worse is every IFI rep that we spoke to couldnt address any of my questions or concerns. I felt very uneasy and advised my client to have an attorney read it. Luckily they did, and basically the attorney explained that by signing this agreement the homeowner would change the title of their home over to a Trust. (this would help delay the foreclosure process and is considered fraud) It gets worse, the client would than start paying the "trust" everymonth. This is the payment that is equal to 8.75% of the value of the home. The homeowner is also signing a lease to the Trust, so if they do not pay the "rent" the TRUSTEE (IFI) has the right to evict them as they own the home.
The problem to all this is THE HOMEOWNER WOULD PAY THE TRUST (IFI) WHEN IFI HAS NOT PURCHASED THE HOME.

Contact the California State Attorney General's office.

The complaint website is http://www.ag.ca.gov/consumers/general.php DO IT NOW!!!

The sales pitch that IFI used to induce brokers to solicit there clients for their service is absolutely ridiculous. Let me give a few reasons why:

1. There is no secondary market. Fannie and Freddie are basically it. If there was a hedge fund or insurance company that would allocate asseture to purchase bad loans do you think IFI is the company they would be dealing with? Of course not.

2. If you WERE purchasing mortgage assets would you purchase sub-prime, default notes (min 60 days per their guidelines), with homeowners underwriting only to a front end DTI? You would have to be incompetent to think that is o.k.

3. As far as I remeber 2/28's were essentially banned in 2007. Nobody was buying them and lenders stopped funding them because wall street did not want them. No matter the level of barbelling these loans you can only hide so much. IFI's initial product was a 2/28 at roughly 8%. Why would wall street or a private investor buy loans from IFI on the very program they were no longer willing to buy just a few years ago WITH a verified defaulting borrower?

4. Lastly, Why take $795.00$1695.00? Here is IFI's financial agreement...IFI would pay it's brokers 3% of the new loan amount at closing for bringing them the client and closing. So on a $400k mortgage the broker would be entitled to $12, 000. Now I am assuming that IFI was receiving at least 3% as well on a closing. Why would risk those types of profits to violate the California Civil Code, Newly enacted legislation (SB 94) and about 9 other state laws when you could get 5 times the amount of files by charging $0.00 upfront? The answer is you wouldn't.

I have to say this. In theory I think this is a great idea. Buy bad notes, give clients new loans based on the actual values of their homes at fixed rates, even if it's at a high rate. The problem is the execution. Misrepresentation, bad business practices and fraud are laced all through this. These are the types of things the boys from Virginia (FBI) come to visit you about at home Mr. Monaco. If IFI was smart they would contact every homeowner they have contracts on refund the money that they were paid and beg Jerry Brown doesn't make an example of them during his campaign.

THESE ARE FROM http://www.stopfraud.gov/report.html#mortgage

To report Mortgage Fraud or Loan Scams:
Federal Bureau of Investigation
Phone: 1-800-CALLFBI (225-5324)
Online Tips: FBI Tips and Public Leads Form


To file a complaint with the FBI contact the nearest FBI field office. Locations are listed at www.fbi.gov/contactus.htm or https://tips.fbi.gov/ or for major cases, you can also report information by calling toll-free number 1-800-CALLFBI (225-5324).

Housing and Urban Development (HUD) Office of the Inspector General Hotline
Phone: (800) 347-3735
Fax: (202) 708-4829
Email: [email protected]
Address: HUD OIG Hotline (GFI), 451 7th Street, SW, Washington, DC 20410

PreventLoanScams.org: A project of the Lawyers Committee for Civil Rights Under the Law
Website: PreventLoanScams.org
Phone: 1-888-995-HOPE

PreventLoanScams.org - was launched to serve as a nationwide clearinghouse for loan modification scam information on complaints filed, laws and regulations, and enforcement actions. If you think youve been scammed or approached by a company or individual promising to help you with your foreclosure, report it today.

Federal Trade Commission (FTC): Complaint Assistant
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The Federal Trade Commission collects complaints about fraud, companies, business practices, identity theft, and episodes of violence in the media.