Carol
Union City,#2Consumer Suggestion
Thu, April 19, 2007
Undoubtedly when you got to the closing and they changed the terms of the financial documents they manufactured, you had a "stack" of papers to sign and none were explained to you. You were bombarded with "sign, sign, sign" while trusting the representatives of this predatory lender to be fair with you and work for your best interests. I am definitely of the opinion that they did not provide you with the proper disclosures shortly after the loan application which they are required to do by law. Disclosure Requirements for ARM Loans: If the annual percentage rate on a loan secured by the consumer's principal dwelling may increase after consummation and the term of the loan exceeds one year, TILA requires additional adjustable rate mortgage disclosures to be provided, including: o The booklet titled Consumer Handbook on Adjustable Rate Mortgages, published by the Board and the Federal Home Loan Bank Board or a suitable substitute. o A loan program disclosure for each variable-rate program in which the consumer expresses an interest. The loan program disclosure shall contain the necessary information as prescribed by Regulation Z. TILA requires servicers to provide subsequent disclosure to consumers on variable rate transactions in each month an interest rate adjustment takes place. Most of the time we, as consumers, are not aware as to what "program" these predators have "designed" for us which benefits only them until problems arise as a result of their ridiculous bookkeeping system and confusing manner in which they service the loan once they receive payments that are supposed to be applied to principal and interest, but, instead, are applied to whatever bogus fees they generate and try to justify by their production of ludicrous spreadsheets and computer printout forms that only they understand, a practice not acceptable for generally accepted accounting practices. They don't want you to understand their practices in servicing the loan so they can continue to conceal the manner in which they "induced" you into signing the financial instruments they prepared for you to sign which only benefits them while pretending (through their agents) to be acting in your best interests...
John
Califon,#3Consumer Comment
Sun, April 15, 2007
If you signed a loan agreement for a 30yr fixed 7% mortgage....how did they "change" it to a 9.99% ARM without you signing for it and since you signed the previous agreement?