Complaint Review: Nations Choice Mortgage - Gilbert Arizona

I'm a lawyer and a friend asked me to review his "Loan Lock in confirmation" from these scam artists. It included a "Loan Financing Agreement" that he is supposed to sign. Under the heading Application Fee it states: A non refundable application fee of 1% of the loan amount is charged for the initial cost of applying and preparing your loan package to submit for commitment. This fee is applicable to your actual costs and application fee at the time of the settlement of your commitment. Business acknowledges the receipt of $350 of the non refundable application fee. I authorize NationsChoice Mortgage to electronically debit my account # refer to attached copy of check in the amount of $350. Borrower agrees that the full application fee and actual expenses incurred by the licensee in connection with the preparation for this loan are due and payable; however, Business has agreed that a lender flat fee of $1495 is guaranteed upon successful completion of this loan, plus applicable appraisal overage due or you may select your own certified appraiser. The non refundable application fee is not applied to appraisal charges. Can you say con artists? Basically these jokers are trying to scam unsuspecting loan applicants by offering rates lower than possible and then trick the applicants by making them sign a loan agreement which commits them to pay an application fee of 1% of the loan. Applicants are led to believe that the $350 is an appraisal fee when it is really part of the 1% application fee. According to the language of the agreement the scam artists are really the ones paying for the appraisal. They just need the applicant to give them access to their bank account by charging them an amount the applicant would be comfortable in paying hence $350. The applicants are assured by the mortgage rep that the loan fee will only be a max of $1495. The $1495 as mentioned in the document is really a separate loan fee. They are also led to believe by the loan rep that the 1% mentioned in the agreement is an early repayment penalty when it's actually the loan application fee. Last but not least the legal language of the loan agreement holds the applicant responsible for the loan application fee regardless if the loan is processed. You basically are commited to these jokers if you sign the loan agreement and are not just applying for a loan. My advise is to stay away from any mortgage brokers that charge an application fee. Any legit broker will not charge you to apply for a loan. Also do not sign any legal documents you do not understand regarless of what the rep says the document mean. Lucky for my friend he just didn't sign the agreement.

What makes you think that you don't need to be charged for your loan? Is it possible that your credit was so bad/employement history/property condition that it took the loan forever to close? As far as it goes with the credit card deduction-that can happen from any company. It happened to me last week with may car insurance.

NationsChoice Mortgage deals with approx. 3000 clients monthly. It is unfortunate for both parties when a dispute occurs. This client was well aware of the reasons for the .25% increase in fee. He signed the Good Faith that had the change in fee when he changed his mind and did not want to impound tax and insurance after the original Good Faith he signed had them included. NationsChoice is in the business of closing loans. We do not want a fee without closing a loan. We want a client to do what they have agreed to in writing and if they change the terms to not expect something for nothing. It also is beyond our control when clients change terms such as loan amounts at the last minute and a new approval must be received. This particular file had several changes from the client causing delay. Just as it is resonable to think a client had been ripped off, it is just as reasonable to think their are some very difficult clients that a company runs across when you deal with 3000 clients monthly. I ask that you refer to the Better Business Bureau in Pheonix for a come complete profile of our company. Our rating has always been the highest available and still is. I personally take pride in giving a client exactly what they have come to expect. If it is a fault of our company we will complete the transaction at a lose. If it is a change requested by the client we expect them to pay for the change or adhere to the original terms. This client agreed in writing to pay the disputed fee if we were able to offer the terms both parties agreed to in writing. We would have honored those terms had the client accepted them. He did not. If I would have been this client I would not be happy about paying the fee, but I clearly would have understood my obligation. In addition, it is our policy to retain this fee as a deposit for the clients use within a one year period on a future mortgage. This client may still wish to rethink this transaction and complete it as originally agreed. Respectfully, Chad Fisher