Be Smart – Do not repeat my mistake passing on my experience and lessons learned.
I closed on a refinanced loan with Security Mortgage Lender in April.
The loan agent, Nick Mgerdichians mentioned it was a $0 cost loan.
We requested for a good faith estimate (GFE) included was the appraisal fee $575 covered by the broker and a credit of $2,200.
Nick mentioned he had to request for extension on the loan costing $2,075.
After the loan was closed the net reimbursement that was due equated to $700 ($575 appraisal + $125 broker’s credit) which was never made and is still owed by the broker.
I called the agent and escalated this situation to the branch manager – Eddie Mansour providing of all records and proof of all emails communications.
The excuses I received was that he is no longer employed with Security Mortgage Lender.
Therefore they are not obligated or know of this event.
The loan was taken place on the clock and I am sure there was a Sr. Loan Manger who reviewed and authorized the rate and condition before processing the loan.
I come to find out they basically used the “Bait” tactic practiced by many brokers and loan officers to generate businesses.
It is so evidence there still a need to for more scrutiny and rigorous audits in this industry to help protect consumers who are people like you and I who worked hard for their earn money.
The era of creative financing with interest only loan are still being worked and represented by the very same people but under a different business logo or alias names.
There is no sense of business ethics nor practices – eliminate “Trust” in your equation and make sure you do not pay anything up front walk away if needed.
And if you’re too deep into your loan you have the rights to rescission which I should have done.
If you experience any fraud you can report your case to California Bureau of Real Estate, Department of Real Estate, State Attorney Office, Banking Commissioner Office of which the contact information are all online make sure to include the NMLS#131380 which can be found under your loan documentation as well.