Complaint Review: Primerica - Citicorp - Merrillville Indiana

You have received some very good advice. You should try to dispute the PPP. You can absolutely revoke the bi-weekly set-up as it is not mandatory. You should negotiate with the lender as well. Lenders normally do not want to take your property especially if there is not sufficient equity and I get the impression you do not have that equity. The best advice of all is to look elsewhere for opportunities if you want to work in this industry. You will find much greater deals than PFS. However, I have some other advice for you. Take responsibility for your actions. Don't blame it all on the PFS loan. You say you are a month behind on your mortgage. That means that it wasn't just the extra $96 in monthly payment that "has ruined your credit". It means you didn't send anything to the lender to be a full month behind. Send the initial half payment and what you can of the 2nd half each month until you get back on a regular monthly schedule. Keep in mind that a simple interest mortgage works against you when you pay late so press them to get back on a regular monthly payment plan. Also, calculate the effect of refinancing again (PPP and new closing costs) with rates dipping near all-time lows. It may or may not make sense to ride out the PPP. Finally, make sure you have no spelling errors yourself before you remark on others spelling. Most spelling errors on the net are probably "typing" errors. I spell very well but I've probably typed something wrong somewhere in this post.

Check with your state finance or banking departments. Often, Primerica Mortgage originates loans as a state licensed mortgage broker for Citicorp Trust Bank, fsb (federal savings bank), or other Citigroup subsidiaries, with prepayment penalties they CLAIM they are entitled to for a couple of spurious reasons. 1) Primerica claims to be an "affiliate" of an fsb Lender (i.e., Citicorp Trust Bank, fsb) and therefore are entitled to the "Preemption of State Law" provision available to "operating subsidiaries" of federally regulated banks or thrifts. They use this to ignore state laws regarding prepayment penalties. Primerica does not qualify for this preemption as they are by admission a subsidiary of Citigroup, Inc., not a federal bank or savings institution. Brokered loans by other than an "operating subsidiary" or other federally regulated depository intitution do not qualify for this preemption. When you dispute this deception, the lender may remove the prepayment penalty. If customer service doesn't help, demand it be escalated to 'research' or 'Legal' departments. 2) The lender (i.e.Citicorp Trust bank)also will claim the prepayment is allowed under the Alternative Mortgage Transaction Parity Act. This is only true if the loan is an "Alternative Mortgage", i.e., an adjustable rate mortgage, or has a ballon payment. Most often, Primerica sells a 30 year fixed rate mortgage and offers you "bi-weekly" payments. This payment arrangement is not disclosed in the Note & Security Agreement nor does it make the note an "Alternative Mortgage". 3) Even when you dispute the prepayment penalty, the payoff department may try to persuade you to "go ahead and pay the prepayment penalty when you refinance, and request a refund later...it's FASTER that way". The problem is it raises the new loan amount by the penalty amount, and you still pay interest on the penalty amount even if you do get a refund of the penalty. Everyone should dispute their prepayment penalty, it can't hurt, and it has helped some Primerica mortgage victimes I know get it waived. Finally, dump that bi-weekly mortgage payment, what they call "Equity Builder", if you can't afford it. Call the customer service number on your statement and have it cancelled. No doubt these are predatory practices and should be stopped.

First of all review the paperwork and find out what the pre=payment is if there is one, second if there is a PPP how much it is and then determine if you have sufficient equity ( I hate to say this) to refi again. ALthough you are using the equity in your home again, better less equity and a home than the alternative. In addition and contrary to what many people will tell you fannie and freddie have loans at agressive rates for people with damaged or impaired credit, they can be done and are not that difficult. In most cases initial underwriting is done online and an asnwer can be had in minutes. I would also recomend finding a highly qualified mortgage broker and asking them for direction and advice, your state association of mortgage brokers is a good place to start. Feel free to post your questions and I can respond with some help.

Sorry, you like many have fell for the Primerica FNA dance. Its one of the main reasons I left the company. I could not do what happenned to you to any more people. FNA stands for financial needs analysis. Check my earlier posting. Its basically used to razzle dazzle the client in hopes that you will buy their life insurance and other products, but the mortgage portion is even more insidious since its designed to over come the objection of the high entrance rates, ala the bi-weekly or bi-monthly mortgage acceleration dance. Paying bi-weekly or bi-monthly is a good idea if you can afford to do so. What PFS is doing is to say: "do this and therefore our high interest rates won't matter". Wrong! And there lies the hook. You can do exactly what they are proposing with a lower interest rate from probably your present mortgage company, but I doubt that the PFS rep pointed that out. As for as getting out of your present situation. In Maryland there are no Pre-payment penalties if the APR is above a certain rate. You might want to check with your local state laws. But if citi-financial (fka Commercial Credit) did the paperwork they have probably cleared it with the state. You could have PFS re-work the loan if they're willing to eliminate the bi-weekly or bi-monthly nature of it, and pay the loan until the pre-payment penalty goes away and there refinance with another company. I'm afraid you don't have many choices other than to warn others and possibly complain to your local state consumer organizations. Regards