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Report: #208337

Report: QUICK LOAN FUNDING

Reported By: (palmdale California)

QUICK LOAN FUNDING MANIPULATED/INFLATED 6-MONTH LIBOR INDEX ,RIPPED OFF FEDERAL FUNDS Costa Mesa California

... TITLE COMPANY TO THE RESCUE???

7Author 9Consumer 0Employee

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QUICK LOAN FUNDING

535 ANTON BLVD. SUITE 600
COSTA MESA California 92626
U.S.A.
Phone: 800-500-0000
Web Address:

Category: Mortgage Companies

Submitted: Monday, August 28, 2006

Last posting: Sunday, September 10, 2006

September 2003- 2 of our Mortgage Loans were Originated by Quick Loan Funding. The program was an Adjustagble Rate Mortgage. 2 year fixed and carried the following:

7.0% max it can rise each change date and 16.250% CAP

APR= INDEX + MARGIN + YSP
9.250 = 1.861% index + 6.0% margin + 1.389% YSP

1.1795- actual 9/2003 index. 1.861% is inflated by adding .6815

A yield Spread Premium and originating cost was not enough. Greed took its toll and this is what it does. It will get caught one way or the other and when it is exposed like this for everyone to check their Loan docs and comparing ARM INDEX then these Fraudsters got no place to hide anymore. First they hide behind the Law now they hide behind an INDEX? this is the end of the line.

TO ALL HOMEOWNERS OUT THERE- PLEASE CHECK YOUR LOAN DOCUMENTS AND PULL THE PAGE THAT READS: ARM DISCLOSURE. fIND THE INDEX AND COMPARE IT TO HISTORICAL DATA FROM THIS SITE:
mortgage-x.com/general/indexes/default.asp
THIS WILL UNCOVER PANDORAS BOX.

NOW HERE IS THE BEST PART: The historical index data shows that the 6-MOnth Libor index rate on 9/2003 was: 1.1795. Based on what Quick Loan Funding used at a value of: 1.861, a difference of .6815 is made. Little it may seem for the unassuming Borrower just like stealing cents to the dollar for every homeowner victimized in total would be CATASTROPHIC in losses to the Federal Government. Siphoned funds by adding a percentage to the index gets carried over as the Loan size grows in succeeding refinances. Amortized the .6815 to different Loan amounts turned to be a lot of Money!!!

APR:
A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans.

INDEX:
A published measure of economic conditions usually relative to other financial instruments such as Treasury notes or Treasury bills. The lender uses a particular index to calculate the interest rate on an adjustable rate mortgage (ARM) by adding a fixed margin to the index

MARGIN:
The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

YSP (YIELD SPREAD PREMIUM)
A bonus the Broker receives from the Bank for charging the client a higher interest rate than what they really qualified for. A bonus to the broker that the client pays all throughout the term of their Loan w/interest. An unnecessary expense with no gains for the borrower. AVENUE S MORTGAGE DOCUMENT AUDITING SERVICES, CA LIC# 2838913 ROBERT (((ROR REDACTED FOR SECURITY PURPOSES))) PALMDALE, CA 93552

P.S.
I DONT MIND POSTING MY INFO FOR ALL TO SEE. I MAY BE OF HELP TO ANYONE THAT NEEDS IT. THE ONLY WAY TO STOP MORTGAGE FRAUD IS BY EDUCATING OURSELVES AND REACHING OUT TO OTHERS. THANK YOU VERY MUCH.

ROBERT
palmdale, California
U.S.A.
sorry, …allowing you to give a competitors name would instigate others to just file against their competition, to only come back later to suggest their company… your comments on this policy are welcome! CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report

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REBUTTALS & REPLIES:

7Author 9Consumer 0Employee

Consumer Suggestion

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Your method and calculations are wrong.

Steve - Corona (U.S.A.)

SUBMITTED: Monday, August 28, 2006 POSTED: Monday, August 28, 2006

Robert, you have some of the pieces to the puzzle, but not all and you are definitely not assembling them correctly.

First, LIBOR is a very common index for ARM loans. It is used for sub-prime and prime loans alike. The difference between prime and sub-prime loans is the MARGIN that is added to the INDEX when calculating the changes to the note rate at time of adjustment. The Margin on prime loans is typically 2%-3%, and for sub-prime it is 5%-7%.There is the 6 month LIBOR and the 1 year LIBOR.

The YSP is NOT added into the initial rate calculation or the subsequent rate changes. You are correct however in that it is a bonus or kick-back to the lender for you accepting a higher than "par" rate.

The formula for calculating the rate change is INDEX + MARGIN = NEW NOTE RATE. This is NOT APR. If your loan adjusted for the 1st time this month, the new rate would be like this: 5.454%(6 mo. LIBOR INDEX) + 6%(MARGIN) = 11.454% NOTE RATE. The fact that they may have started you out at an index that was higher than the published 6 month LIBOR is a non-issue. It didn't affect anything then and it doesn't affect anything now.

The margin you have of 7% is very high. The fact that they put you into a 2/28 ARM tells me that you were having some real tough credit issues at that time. I was putting people with decent credit into 5/1 ARMs at 3.5%-3.875% at this time. The margin on those loans is 2.25%. If they were to adjust today they would be at about 7.7% or so.

The only thing that looks high on your post is the margin. But, that is indicative of a sub-prime margin.

You are correct that people SHOULD read their loan docs very carefully before they sign. On these ARM loans the MARGIN is probably the most important part because it tells you how your loan will adjust.

These 2/28 loans are sold at "credit repair" type loans. Why are you still in it after almost 3 years?

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6% Margin

Steve - Corona (U.S.A.)

SUBMITTED: Tuesday, August 29, 2006 POSTED: Tuesday, August 29, 2006

I erred in stating that your margin was 7%. Like you wrote, it is 6%. Still, this is on the higher end because of the sub-prime loan.

Also, I'm not sure where you are figuring there are "ripped off Federal funds"? There are no "Federal funds" involved in this loan at all. The LIBOR index is connected to the London Interbank Offerd Rate. Because your loan is a sub-prime loan it is not a Fannie Mae or Freddie Mac loan.

Your statement>>"Siphoned funds by adding a percentage to the index gets carried over as the Loan size grows in succeeding refinances. Amortized the .6815 to different Loan amounts turned to be a lot of Money!!!"

Your statement is false. Any perceived "add-on" to the index YOUR STATEMENT (1.1795. Based on what Quick Loan Funding used at a value of: 1.861, a difference of .6815 is made.) has no bearing on your rate then, and definitely not when it adjusts. The adjusment calculation is strictly the 6 month LIBOR + 6% margin = new note rate.

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ACCURATE INFO!!!

Karina - Palmdale (U.S.A.)

SUBMITTED: Wednesday, August 30, 2006 POSTED: Wednesday, August 30, 2006

I went and checked the 6-Month Libor Index @ http://mortgage-x.com/general/indexes/default.asp
got that value for September 2003 compared it with the stated value and got a .6815 variance. Now for 2 years of paying a rate of 9.250% would be more monthly payments compared to paying 8.5685% this is scarry but it makes a lot of sense no matter if the Loan is a high cost loan or not.

In fact Fraud is prevalent in high cost loan. Whoever mentioned -Scott_ does not know what he is talking about. The index is a value tied to the Market treasury. Now to inflate this has no bearing to his claim as to no relevance in Mortgage is 2 things. Fraud is material misstatement and misrepresentation no matter what. Relevance to mortgage- well an index is the basis of all Mortgages.

Go take Mortgage 101 again Scott. This is something that people should start looking into now INDEX. Way to go Robert!!! more power to you. You guys are becoming a RARITY. Please dont go extinct. People need you whoever and wherever you are.

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Karina, you don't have a clue. This is how perceived complants get blown out of proportion

Steve - Corona (U.S.A.)

SUBMITTED: Thursday, August 31, 2006 POSTED: Thursday, August 31, 2006

OK, here is some Mortgage 101 for you Karina, and anyone else that wants to learn something.

1. The index Robert referred to is the 6 month LIBOR. This index is NOT a US Treasury index. It is not EVEN a United States index. It is the London Inter Bank Offered Rate. L-I-B-O-R...Get it? It is Europe's version of our Prime Rate. The rate which banks lend each other money on an overnight basis.

2. The calculation that Robert showed is absolutely, positively incorrect:
APR= INDEX + MARGIN + YSP
9.250 = 1.861% index + 6.0% margin + 1.389% YSP
Read the 2nd post in this thread again.

3.There is NO WAY that Robert's interest rate was 9.25%. In Sept 2003, even with poor credit, it would have been around 6% on a 2/28 product. Robert, you sais you are not afraid to reveal your info, right? Do this for us:

a. What is the starting interest rate on your note. NOT the APR. You are not paying on the APR.

b. When did it adjust for the 1st time? (Should have been Sept. or Oct 2005). Subsequent adjustments each consecutive 6 months.

4. I'll say it again. If there was a discrepancy in the margin, it didn't affect your rate then and it sure as hell doesn't affect it now. Sub-prime loans have a "lower-than-you-really-qualify-for" start rate. That is precisely why there is also a "PrePayment Penalty" in thos states which allow them. The purpose for a PPP is a guaranteed return on the investor's money for lending this money at an affordable rate.

5. On your Adjustable Rate Rider form in your loan docs Robert, you mentioned the 6 month LIBOR index. Does it also have "WSJ" or Wall Street Journal next to it? The language is ..."as published in the Wall Street Journal". That is stating your index value is published in the Wall Street Journal every day. Look it up, no one is hiding anything.

Oh, by the way Karina, I have been in the mortgage business since 1995, as a loan officer for 8 years and currently a branch manager with 10 loan officer associates.

Care to guess what one of my primary functions at our company is? You guessed it...TRAINING.

Any time you would like to be "schooled" again, just let me know.

Update By Author

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FINANCIALLY UNSOPHISTICATED and BREACH OF FIDUCIARY DUTY

Robert - Palmdale (U.S.A.)

SUBMITTED: Thursday, August 31, 2006 POSTED: Thursday, August 31, 2006

Steve & Karina,
I am very happy to see that I got both your attention. In fact, I would love to see more like you. This shows that the both of you have concern, awareness and sensitivity to the fact that you you place yourself in the victims shoes and from that point of view see that it does HURT. I would like to let you know that the only way this is going to be curbed is if within amongst ourselves we STOP the infighting. Focus that LOOSE CANNON and get the creosshairs to the real TARGET. Help me educate people all around us not show them who is right of wrong. Too many have already been wronged. Lets help each other and make it a better place so we can all go back to our own- HOME.

Steve,
This is what is stated in the ARM PROGRAM DISCLOSURE:
A. INTEREST RATE AND MONTHLY PAYMENT CHANGES

Consumer Comment

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How to combat the problem of fraud in the mortgage industry

Nicole - Temecula (U.S.A.)

SUBMITTED: Saturday, September 02, 2006 POSTED: Saturday, September 02, 2006

As a due diligence underwriter (who has worked on assignment for Quick Loan Funding and has seen their work first hand) I find this exchange interesting.

I would like to STRONGLY suggest that ANYONE who knows of MATERIAL evidence that Quick Loan Funding is commiting fraud, whether you are a current or former employee, or customer, that you contact the following agencies; HUD, FNMA, Ginnie MAE, FBI (mtg fraud division), SEC, Secretary of State, Mortgage Bankers Association, The California Dept. of Real Estate, and the California Dept of Real Estate Appraisers, and file a complaint.

I believe the charges leveled in this exchange are very SERIOUS and indicate possible Federal infractions.

The only solution to the problem is for people who have been wronged to get proactive about the solution and let the HIGHER UPS of Quick Loan Funding explain their actions to the FEDS (with documentation that only YOU can provide).

There is a saying that goes something like this, "The only thing necessary for evil to survive is for honest people to do nothing about it".

As for the former or current employee's, you have valuable FIRST HAND information that I am SURE the authorities would like to hear.

Thank You.

Update By Author

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REPORTED TO: AND WHEN-

Robert - Palmdale (U.S.A.)

SUBMITTED: Sunday, September 03, 2006 POSTED: Sunday, September 03, 2006

I always report the matter to the following agencies first before it gets to RippoffReport.com
With EXHIBITS ATTACHED.

IRS-CID
FBI-LANCASTER FIELD OFFICE, WHITE COLLAR CRIMES
OFHEO/HUD
FINCEN
FREDDIE MAC
FANNIE MAE
DRE
CAMB
CA DEPT OF CORP
OIG
SEC
FTC
and of course my Legal Councel of choice.

Rest assured a very serious crime is reported to UNCLE SAM. then to RippOffReport.com for the world to see. Good Enough for you? Any suggestions will be taken and action done ASAP if it is for the good of the Gen. Public.

Update By Author

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TO REMOVE ALL DOUBTS, CALCULATE!!!

Robert - palmdale (U.S.A.)

SUBMITTED: Sunday, September 03, 2006 POSTED: Sunday, September 03, 2006

Everyone whith mortgage common sense,
whip out your best tolls of the trade and enter these figures. nothing mysterious here except for the fact that more dubious ways of milking the client have been discovered. i did, find out for yourself. Federal and State Enforcement agencies Atty., Forensic acct's, Mortgage Bankers call me anytime, Evidence in Black or White available on confirmation of written request.

If figures are missing this report has been altered as well as my Loan Docs. People will be more misled by these theives.
Loan Program: 2/28 ARM using 6-Month Libor Index from WSJ
Lock Date: 9/23/2003

* 6-Month Libor Index Value as of 9/2003: 1.861 *
APR: 9.250, Initial Interest Rate: 9.250, Margin: 6.0, YSP:1.389
Floor: 9.250, Ceiling:7.0, Cap: 16.250

all figures from ARM Program Disclosure
DocMagic eforms

good luck and make sure if you see what a lot of authorities now see because i have reported this before i PUBLISH OUT to Ripp-Off Report.
With Attached Exhibits in the form of Loan Documents I reported this to the following:

IRS- CID
FBI- WHITE COLLAR CRIMES
FINCEN
HUD
OFHEO
FREDDIE MAC
FANNIE MAE
DOJ
CA DEPT OF CORP.
FINCEN

Any Thing else i missed, everyone respond ASAP.

Consumer Suggestion

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Post the Picture

Steve - Corona (U.S.A.)

SUBMITTED: Monday, September 04, 2006 POSTED: Monday, September 04, 2006

OK, Robert, you have said you don't care if people see this information and you have nothing to hide. You have said you are being ripped off.

Ripp Off Rport will allow you to post pictures (scans) of your loan docs to prove your point. You can redact (black-out) your personal info, scan them and then submit as jpeg photos. You may have to start a new thread.

Post the Truth in Lending
Post the Adjustable Rate Rider
Post the Good Faith Estimate (shows the YSP)

If you have a Yahoo or MSN account you can also post these scans to a public page. There are many, many methods to show these forms.

In the United States people or companies are innocent until proven guilty.

Show it.

#10

Update By Author

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pictures submitted for posting as requested

Robert - Palmdale (U.S.A.)

SUBMITTED: Wednesday, September 06, 2006 POSTED: Wednesday, September 06, 2006

if there is anything else you need let me know. as long as you put it to good use and your expert opinion after analysis is posted- DEAL???

#11

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You Got it Robert

Steve - Corona (U.S.A.)

SUBMITTED: Wednesday, September 06, 2006 POSTED: Wednesday, September 06, 2006

Thank you(steve)Robert. If(at) these pics are posted that show the problems you address, I will[mortgagegroupdirect] definitely com ment on it. You seem like a smart guy, so read between the lines for additional help. We are local in Corona, CA

#12

Consumer Comment

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MAD (Mortgage Advocate Dan) Responds

Dan - Lake Zurich (U.S.A.)

SUBMITTED: Wednesday, September 06, 2006 POSTED: Wednesday, September 06, 2006

WOW! What a great discussion. First off, Steve has correctly stated the facts of an ARM and how they adjust and what is involved, so I don't need to make a comment. He was also correct that this was probably a 'bandaid' loan to help you rebuild your credit. Don't cry over spilled milk, refi out of your ARM, but this time 'ARM' yourself!

Robert, if you would have read my book,"What Mortgage Brokers DON'T want You to Know", you would have had 43 systematic questions to ask the mortgage broker to insure you that you didn't get a loan you didn't need.

Call to ARMS, Call to ARMS! ARMS are adjusting everywhere! Get out of them now while rates have dropped!

'ARM' yourselves in the future with the BEST mortgage ammo available, get yourself "What Mortgage Brokers DON'T want you to Know!"

Remember, Time is Money; if you don't take the time, they WILL take YOUR money!

M.A.D

Mortgage Advocate Dan

A current reader wrote that, "Thanks Dan, you have made a complicated topic, fun!"

#13

Update By Author

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FORENSIC ACCOUNTANT OPINION WANTED ASAP!!!

Robert - Palmdale (U.S.A.)

SUBMITTED: Thursday, September 07, 2006 POSTED: Thursday, September 07, 2006

Lets hear it from an expert in this field.
Till I do I will not rest till I see what EXACTLY happened to that VARIANCE (.681).

It could have made the rate go from:
9.250 to 8.5685
7.250 to 6.5685
In this Mortgage World of Points, This makes this difference a grave concern.

Adjustable Rate Mortgage (ARM) should have not been named as such. People who got into
this program way back when were made to believe that as the rates go down so does their Mortgage Payments. BUT NO!!! They stay the same when the rates go down and only go up after their rate lock expires.

To keep them in it they charge Pre payment penalties equal to or if not greater than the savings they would have from switching into a Fully Amortized Fixed Rate which was probably close to the initial rate of the ARM.
UNFORTUNATELY because "they have signed" they are stuck. Right? WRONG, People have a choice only if they know where to go what to do and how to do it.

Companies like Quick Loan Funding right now Vehemently denies this claim even if they were themselves who put that number in paper for us to sign. How the hell would peole know what indexes are anyway. Thats the reason why there is such a thing as a Sworn in Duty for every profession taken.

TRUST is the Foundation to which all this is built. Even the Dollar bill has the phrase emblazoned on it saying "IN GOD WE TRUST" HAS THE FEDERAL GOVERNMENT SEEN GOD?

Why is the innocent Borrower being put at fault for signing a Faulty Loan? Yes they will lose their house, equity and hard earned money and all!!! What about the scumbag that walked?
Ca. Dept of Corp. Criminal Investigator Marissa Guttirez mentioned that what took Ameriquest down was when 67 sodomized homeowners filed for suit. They all signed their Mortgage Agreements. In fact they have all the reasons we do. So whats the difference? Without admission of guilt they paid $300,000,000. What an expensive lie. Now they still are in business with different names in different parts of the country. and employing better schemes as well. they think people will never catch up to a band of theives. If we dont, God is watching anyway and in the end it does not really matter. How we got there does.
Your call.

#14

Consumer Suggestion

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For Robert...A Great Idea!!

Nicole - Temecula (U.S.A.)

SUBMITTED: Thursday, September 07, 2006 POSTED: Thursday, September 07, 2006

Robert, I have a great idea for you. I am thinking about doing it myself, even though I am not a customer of Quick Loan Funding, I am an industry insider who does not agree with their way or doing business. Did you know, Robert, That you can contact various TITLE companies and they can give you a list of ALL loans they have closed for Quick Loan Funding, originated between the years that you request. You can then take that list, contact the borrowers, compile their COMPLAINTS and then find an attorney willing to file a class action law suit and take Quick Loan Funding DOWN just like Ameriquest. I wish I could give you my name and phone number because I WOULD HELP YOU DO IT!!!!. I DONT LIKE THEM. They are CROOKS and lack integrity in my constitutionally protected opinion.

Thanks.

#15

Update By Author

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TITLE COMPANY TO THE RESCUE???

Robert - Palmdale (U.S.A.)

SUBMITTED: Sunday, September 10, 2006 POSTED: Sunday, September 10, 2006

Go for it Nicole!!! Any help would mean a lot in this downhill battle. With their multimillion dollar Lawyers on their side they think they can hide. avenues dotlendinghang at gmail times of com you are a smart woman go figure.
2003 is the year of the .6815 difference. all the homeowners have to do if they have this company is to look into their INDEX figure and check historical data.
the IRS-CID will be notified again. an audit is the only way to go. i will update you all because i am filing the suit already.