Loan Modification & Loan Workout News published a new entry entitled "CW is Scummy and So are the Brokers Who Peddled This Crap." on 11/20/2007 9:35:03 AM, written by Moe.
CW is Scummy and So are the Brokers Who Peddled This Crap.
The reason I post these stories is because I want to give a voice to homeowners. This blog or my mission isn't about me but it's about our mortgage crisis and how homeowners are suffering from these toxic loans that they are stuck in and can't refinance out of.
It's about solutions and also the problems. One big problem is the loan industry in general and brokers and loan officers are getting slammed in the press.
The mud slinging has begun and appears that a lot of loan officers that have been visiting this blog blame the borrower for not reading their 2 inch thick paperwork that they pay a licensed professional thousands of dollars to have a fiduciary duty in representing them with utmost care and integrity in their dealings.
I have seen comments that blame the homeowner for not understanding exactly how the loan works, what the implications were if they took the loan, the reset payment, the right of rescission, the reset rate, cap rates, index rates, margin, tax implications, foreclosure implications, prepayment penalties etc. of these toxic loans.
Bottom line is that it is the broker's and loan officer's job to explain the ineer workings of the mortgage to their client. The facts are that it rarely happened and most of these important factors of the loan were left out of the discussions and left for the borrower to fend for themselves.
The borrowers think that the licensed loan officer that they paid pretty handsomely should have explained all of these factors in detail. The loan officer that just got paid $10,000 thinks that the homeowner should have read all the fine print in the 2 inch thick paperwork.
Here's what homeowners are saying in regards to my recent post: Worse Than a Pimp on a Corner. I Haven't Even Pulled My Pants Up.
That was so painful to read. Realtors, loan officers, appraisers, and bankers made a fine fortune in the run-up to the housing peak. I hope they all get what they deserve.
David from texas wrote:
Prepayment penalties should be made ILLEGAL.
What kind of a world has this become where the rich penalizes borrowers for paying them back EARLY?
I am sorry that you were deceived by these unscrupulous SOB's. There should be protections to guard against crap like that... I will NEVER sign a mortgage loan document until I have a trusted lawyer READ over the entire thing and make sure that there is not ONE item in there that I would disagree with.
There is a special place in hell for these scam artists.
My life motto is... Never trust anyone who makes a commission off of decision that they are advising you to make. It it doesn't feel right then it ain't right!
toby, san diego CA wrote:
I have had a FHA fixed rate CW loan for the past 10 years, and for the past ten years CW has sent me countless solicitations, and in my option MOST of these were designed to confuse or miss- lead a naive borrower. Some were even disguised as government documents saying
a PMI refund was due to me, this is the second notice please call.... I won't go into to much detail, but let me say this
CW is scummy and so are the brokers who peddled this crap.
But on a happy note, i still have my 5.75 fixed, and CW now sends me CD adds offering 5.5% interest.
2 Patti and some other shyster LOs: What a stupid LOs. Read the text again, are you 2nd graders who lack comprehension skills ? One of her major issues is that LO concealed PP. Some of you morons conviniently blame the poster for minimum payment option she took without menitoning responsibility of shyster LO to disclose P P showing your solidarity with that crook. I walked off one closing because one of your bastardy brethren was trying to pull a fast one but I can certainly see that few of my relatives or friends can fall prey to some sleazy, slimy bullshitter LO.
Lie by omission is still a lie. Obviosuly you are going to cover your butt saying "She signed it! Not our problem" but that will really show lack of ethics and why shyters like you should be put out of business.
alan wrote again:
She did hire interpreter if you haven't read it. That LO was supposedly paid from the transaction she is on the hook and now you are trying to say that she should have brought into picture another middleman ? In the end customer who is not well versed in the subject matter must trust that there is someone in the transaction who is actually not lying son of bit.h. It looks like no matter what happens it's never sleaze ball's fault.
As a former insider, I know exactly what the lady is saying. Brokers are the lowest form of life on this planet. Terms are modified after signing every day and brokers laugh about it.
No, assholes, the buck stops with the seller of the loan, who misrepresents the product and fraudulently alters it after the fact. And Congress knows it.