Complaint Review: New Century Mortgage - Irvine California

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.

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.

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.

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.