Embrace Home Loans SCAM and RIP OFF Newport, Rhode Island

If Embace is in fact their own lender (wholesale lender) they do indeed contact with third party appraisaers. However, given they have had so many complaints from both ROR and the BBB, it would seem to me to be prudent on their part to reconsider which companies they use for their appraisal services and mortage servicer.

Lenders now control the appraisal process, which they did not in previous years.  Therefore it is any wonder appraisers are almost too conservative on their values? Since appraisers now rely on their business being contracted by the banks their bread and butter, rather than the individual homeowner, realator, broker or title company they are practically being forced to be overly conservative in their evaluations.  Also appraisers may not be as knowlegable about the market area they are appraising, since they may come from areas other than the local markets they are sent out to appraise.  Additionally I read somewhere about the 3rd party servicer who maintain the homeowners escrow accounts, which apparently caused some pretty costly mistakes to the homeowners involved. 

While Embrace maybe reputable, I have no reason to doubt them. I do know as a former mortage broker, licensed title producer, and wife of an RE appraiser, if your business associates are causing you to spend so much time writting rebuttals ruining your reputation, it might just be time to review who you (Ebrace) are sending your business clients to.

To Whom It May Concern:
 
Embrace Home Loans is NOT a scam, and we certainly do not conspire with appraisers to produce below market values.  There are several things every consumer should know about the appraisal process.
 
First, the appraisal process has become highly regulated.  Both Federal and State government rules prohibit anyone a Lender, a Buyer, a Seller, anybody, from trying to influence an appraiser in preparing his opinion of value.  These same regulations make it a violation for your loan officer to even speak with the appraiser directly.
 
At Embrace, our appraisal orders go to a third party An Appraisal Management Company, that interacts with independent appraisers in a particular area, keeping Embrace out of the loop completely.  Typically, we dont even know who the appraiser is until the report has been received.  There is literally no chance that Embrace or its employees would be able to conspire with an appraiser to dictate the value of a property.  The value in the report is what the appraiser has
concluded the house is worth. 
 
Second, Mortgage Lenders do not realize any revenue from an appraisal.  The fee paid by the consumer to Embrace goes to the Appraisal Management Company, who in turn pays the appraiser.  Embrace does not keep a dollar of it.  Again, it is an absolute violation for any Lender to do that.
 
Indeed, Embrace does not realize any income unless a consumer accepts a loan from us.  For any application that we have to deny for any reason, Embrace would have invested time, and resources and numerous man hours and received no income.
 
Our intent is to deliver loans to consumers for which they qualify, and which will, in return, provide them with a financial benefit.
 
So, just to set the record straight Embrace is in the Mortgage Business to Extend Credit, not to Deny Credit.  Extending Credit is the only way we can be successful.