• Report: #460039

Complaint Review: Amerigroup Mortgage Corporation

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  • Submitted: Tue, June 09, 2009
  • Updated: Tue, September 18, 2012

  • Reported By:Charlottesville Virginia
Amerigroup Mortgage Corporation
6090 Central Avenue St. Petersburg, Florida United States of America

Mortgage Investors Corporation Amerigroup Mortgage Corporation Review Scam | Complaints INVESTIGATION: Mortgage Investors Corporation / Amerigroup Mortgage Corporation commitment to 100% client satisfaction, MIC implemented strategic changes to insure clients success, focusing on finding ways to help service members and veterans protect their homes and lower their monthly mortgage payments even in the sort of challenging market we face today.
*UPDATE: Recognized by Rip-off Report Corporate Advocacy Program as a safe business service Mortgage Investors Corporation / Amerigroup Mortgage Corporation pledges to always resolve any issues, feel safe, confident & secure when doing business with MIC.

*UPDATE EX-employee responds: They are at it again!!

*UPDATE Employee: Numbers are facts

*UPDATE Employee: Numbers are facts

*UPDATE Employee: Numbers are facts

*UPDATE Employee: Numbers are facts

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Rip-off Report Investigation:

Editors UPDATE: Positive Rating and Recognition has been given to mortgage-companies/mortgage-investors-c/mortgage-investors-corporation-ddd29.htm for its Commitment to Excellence in customer service.

Rip-off Reports investigation of Mortgage Investors Corporation / Amerigroup Mortgage Corporation uncovers an ongoing commitment to total client satisfaction. This means that clients can expect that MIC will always work towards finding a mutually satisfactory resolution to any complaints or concerns. MIC listens carefully to client concerns and sees them as an opportunity to learn from past mistakes and become more efficient as a company in the services MIC offers and the support for those services.

One top executive in the mortgage lending business stated to Rip-off Report, that MICs chairmans personal philosophy is that service members and veterans are a different class of citizens who deserve the best this nation and his company have to offer in return for their sacrifices to this country. MIC must listen to our clients and respond properly. This is the best way to ensure MIC will maintain a successful enterprise both now and in many years to come.

Another top executive of the company stated to Rip-off Report, that the Chairmans personal business philosophy is based on the premise that MIC strives to add value in its services. We understand that a successful business model is based on value-added services, and client care. MICs mission statement says it all; "Our goal is to provide our clients the best quality, value and professional excellence in the industry." Some of the other things Rip Off Report learned in the course of its investigation: MICs business was established in 1938 to provide borrowers with home loans and realize their dreams of homeownership. MIC has provided hundreds of thousands of service members and veterans with a new home loan that saved every borrower thousands of dollars over the lives of their loans, lowering their monthly mortgage payments and improving their financial positions. MICs unique business model has made it the leading Department of Veterans Affairs guaranteed refinance provider.

Rip-off Report has confirmed that MIC takes quality control very seriously. MIC has recently put a lot of effort into ramping up its Customer Service team and client relation processes including full time availability to borrowers to assist with any issues that develop. Rip-off Report was pleased to learn that MICs past and current approach to business is focused on its pledge to total commitment towards client satisfaction.

MIC recognizes that complaints posted on Rip-off Report (true or not) are issues that need to be addressed and if handled correctly can be valuable learning opportunities. With the feedback generated by Rip-off Reports Investigation MIC has made organizational changes allowing her clients a more streamlined approach to problem resolution and a total overall commitment to her client experience.

In summary, after our investigation, which included discussions with MICs Chairman and President and many of its current associates, Rip-off Report is convinced that MIC has been and is committed to quality delivery of services resulting in total customer satisfaction.
Read more about Mortgage Investors Corporations Commitment to Excellence and Total Consumer Satisfaction and why consumers should feel safe, confident and secure when doing business with a member of Rip-off Report's Corporate Advocacy Business Remediation & Customer Satisfaction Program. ..yes, a long name for a program that does a lot for both consumers and businesses alike.Read about Rip-off Report Corporate Advocacy Business Remediation & Customer Satisfaction Program,..A program that benefits the consumer, assures them of complete satisfaction and confidence when doing business with a member business. this program works.
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NOW TO THE ORIGINAL REPORT THAT WAS FILED
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Amerigroup Mortgage Corporation Amerigroup Mortage Corportation, Division Of Mortgage Investors Corporation misleading sales presentation Richmond Virginia


I got a solitation notice in the mail for a 'VA Mortgage Payment Reduction Program' with phone number 1-866-747-6987. I called to find out details about what the current rates were and to get a good faith estimate. They asked for my current loan balance and interest rate. They told me that I could save $390.00 per month but could not give me any details as to fees, points, etc. over the phone. They said they only take applications in person and that they would send a loan officer to my home. I specifically asked if this was a fixed rate loan, with no adjustments in interest rate after some initial period. I was told that it was a fixed rate loan. They told me that the loan officer would provide full details. They said it would take only about 15 minutes and it would be no pressure. I scheduled an appointment for the next day.



They guy showed up right on time for our appointment. I asked for some specific information regarding term of loan, points, fees, but was told that all my questions would be answered during his presentation. First red flag was that although I was told on the phone the day before that this was a fixed rate loan, it turned out to be a hydbid loan. The initial low rate was lonly guaranteed for 38 months, after which it became a variable rate loan. No other options were made available. After his hour long presentation, it was clear to me that the promise of significant savings was misleading. The points, fees, etc would add a significant amount to the existing loan balance, such that at the end of 38 months, the balance on the new loan would be about the same as it would have been under the current loan. Any savings after that point were not guaranteed.

After a round-about way of getting the information, I said I wanted to do my own calculations (I am an accountant) and that I would make a decision within a few days and get back to him. He then asked if he could have his manager talk to me, using my phone. The manager spent more of my time trying to convince me to submit an application on the spot. I was not given the opportunity to keep any of the paper with the calculations the loan officer had made.

In my opinion, this company is using misleading tactics to sell their product. As an accountant it was easy for me to see the bottom line for me. This product may work for some, but do not rely on the sales pitch to make your decision. Do your own math. Other mortgage companies I have dealt with have always been willing to fully answer questions as well as provide a good faith estimate without the hassle of sitting though a sales presentation. The loan officer was polite, but it was a waste of time, because I was not told initially that this was not a true 30 year fixed rate loan.

Sincerely,
Someone who has had several mortage financing / refinancing experiences

Be educated
Charlottesville, Virginia
U.S.A.

This report was posted on Ripoff Report on 06/09/2009 10:54 AM and is a permanent record located here: http://www.ripoffreport.com/r/Amerigroup-Mortgage-Corporation/St-Petersburg-Florida-33707/Mortgage-Investors-Corporation-Amerigroup-Mortgage-Corporation-Review-Scam-Complaints-I-460039. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

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Updates & Rebuttals

#1 UPDATE EX-employee responds

They are at it again!!

AUTHOR: Flpmtg43 - (U.S.A.)

This is actually a rebuttal to Danny the current employee of MIC/Amerigroup. Danny, stop drinking the koolaid!!

I was an employee of MIC for 2.5yrs from mid 2001 to end of 2003. I was a loan officer in the corporate office & because of my production I eventually moved to assistant manager of that office & finally was promoted to a Regional Manager & took over an office in Nashville, TN. This was my first job in the mortgage industry & after I left 2.5yrs later I realized how much BS MIC was pushing. I admit during that time I was making 6 figures a year & thought WOW!!, this is so easy. Bottom line though we were nothing more then hard core sales people & had no real clue about the real mortgage world. We had one product, we pitched it, & we pressured people to sign. Everything from the phone call setting your appointment to the closing was scripted. None of the departments knew what the other departments told clients & that was done on purpose.

There was a reason MIC did not hire people with prior banking or mortgage expierence...they knew the real deal & MIC was full of it. I remember in the time frame I was with them we went thru some huge rate drops & many of the clients we refinanced had done so with us 2 or 3 times. The costs, 1 point origination, 2 points loan discount, & sometimes 1 point out of pocket was well in excess of what a borrower could have received from a normal mortgage company or bank. Most of us knew no better...hey we were all sold on the pitch just like our clients. The T.O or "take over" to our manager when we couldn't get a client to say "yes" when we were in the home was all part of the pitch. If you could save the borrower even $20 a month you were expected to close the deal.

Because we only pitched the VA Streamline refi most our clients were retired military or active duty. In many situations the borrwer signed for the escrows cash back & the 1 month skipped payment. If you were a desperate loan officer you would show them how to skip two payments & put even more money in their pocket. If there was a small monthly savings then that was a bonus. The problem here was we were tacking on 14k in fees on average & if you were someone that refinanced with us twice in a year that was 28k in fees in one year. When you run the numbers the only real benefit was cash in pocket to most clients.

I will admit that in the begginning when rates first started dropping & we were saving a client 1.5% to 2% on the interest rate it was a benefit. The problem came when we kept going after the same clients again when rates only dropped another .5%. I promise you most of these clients could have gone elsewhere & received the same rate for much less in closing costs, something I realized when I left & went into the real mortgage world. I have been in the mortgage business now for 8 years & I am currently Vice President & Principal Broker for a local company. I don't regret working for MIC because it did provide me a very nice income & got me into the business of course now I know a lot more then any so called loan officer at MIC could imagine. MIC is a sales company not a mortgage company...bottom line!! When I look around for some of the more succesful people I worked with while at MIC none of them could make it in the real mortgage world. With everything that has happened in this industry since the housing boom, more & more people are aware of these high pressured sales tactics by companies like MIC & are staying away from them. In this time knowledge & credability are most important.

In closing, it suprises me that a man such as Bill Edwards whom was a veteran himself chooses to run a company that rides the fine line of truth vs lies & continues to take advantage of the people he swears his company is out to help. Yes, there will be people that take advantage of what MIC has to offer but only for the short term aspects, not the long term.

Thank You,

FLP
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#2 UPDATE Employee

Numbers are facts

AUTHOR: Danny - (U.S.A.)

Remember that a fixed rate is based off of the ORIGINAL loan amount, so if your loan began at $150,000 and you pay 7% you pay the same 7% even when you only have $5,000 left on the loan. This fact confuses most people who are under the impression that a fixed loan is always best. So, while some continue to pay higher (fixed) interest rates and slowly watch their loan amount decrease, others pay lower interest rates and watch their loan amount decrease along with the rate while continuously saving money... paying their homes off faster.
Our company is legitimate, and every consumer has had a bad taste in their mouth from time to time (we have all had a lazy waitress, a snobby retail associate, etc). Mortgage Investors is proactive and hires admirable veterans, students and workers to be a part of their family. The owner is generous and friendly to all and takes pride in the company by coming to work daily! Personally speaking, he gifted my daughter a bicycle last Christmas along with thousands of other gifts to many who aren't even employees.
There is a lack of knowledge with mortgages because of all the current hype over rates and fear of foreclosures. We DO help, we WILL save you money, and we LOBBY in Washington D.C. for Veterans to maintain the benefits they currently have.
Our persistency, prudence and pride is reflected in our growth chart on our website, www.mortgageinvestors.com
The mortgage industry is always changing, so are the rates. We have, do and will maintain to offer the best mortgage available to veterans...if it is a fixed rate, so be it! If it is a hybrid, so be it! IT IS THE BEST AVAILABLE. This company stands by their name and ideals, we are Mortgage INVESTORS. We invest in the mortgages of our millitary veterans and will continue to until there is no such thing as a loan!
Has your bank called to inform you when there is a lower rate? Would they?
Thanking you with a smile,
D.D.
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#3 UPDATE Employee

Numbers are facts

AUTHOR: Danny - (U.S.A.)

Remember that a fixed rate is based off of the ORIGINAL loan amount, so if your loan began at $150,000 and you pay 7% you pay the same 7% even when you only have $5,000 left on the loan. This fact confuses most people who are under the impression that a fixed loan is always best. So, while some continue to pay higher (fixed) interest rates and slowly watch their loan amount decrease, others pay lower interest rates and watch their loan amount decrease along with the rate while continuously saving money... paying their homes off faster.
Our company is legitimate, and every consumer has had a bad taste in their mouth from time to time (we have all had a lazy waitress, a snobby retail associate, etc). Mortgage Investors is proactive and hires admirable veterans, students and workers to be a part of their family. The owner is generous and friendly to all and takes pride in the company by coming to work daily! Personally speaking, he gifted my daughter a bicycle last Christmas along with thousands of other gifts to many who aren't even employees.
There is a lack of knowledge with mortgages because of all the current hype over rates and fear of foreclosures. We DO help, we WILL save you money, and we LOBBY in Washington D.C. for Veterans to maintain the benefits they currently have.
Our persistency, prudence and pride is reflected in our growth chart on our website, www.mortgageinvestors.com
The mortgage industry is always changing, so are the rates. We have, do and will maintain to offer the best mortgage available to veterans...if it is a fixed rate, so be it! If it is a hybrid, so be it! IT IS THE BEST AVAILABLE. This company stands by their name and ideals, we are Mortgage INVESTORS. We invest in the mortgages of our millitary veterans and will continue to until there is no such thing as a loan!
Has your bank called to inform you when there is a lower rate? Would they?
Thanking you with a smile,
D.D.
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#4 UPDATE Employee

Numbers are facts

AUTHOR: Danny - (U.S.A.)

Remember that a fixed rate is based off of the ORIGINAL loan amount, so if your loan began at $150,000 and you pay 7% you pay the same 7% even when you only have $5,000 left on the loan. This fact confuses most people who are under the impression that a fixed loan is always best. So, while some continue to pay higher (fixed) interest rates and slowly watch their loan amount decrease, others pay lower interest rates and watch their loan amount decrease along with the rate while continuously saving money... paying their homes off faster.
Our company is legitimate, and every consumer has had a bad taste in their mouth from time to time (we have all had a lazy waitress, a snobby retail associate, etc). Mortgage Investors is proactive and hires admirable veterans, students and workers to be a part of their family. The owner is generous and friendly to all and takes pride in the company by coming to work daily! Personally speaking, he gifted my daughter a bicycle last Christmas along with thousands of other gifts to many who aren't even employees.
There is a lack of knowledge with mortgages because of all the current hype over rates and fear of foreclosures. We DO help, we WILL save you money, and we LOBBY in Washington D.C. for Veterans to maintain the benefits they currently have.
Our persistency, prudence and pride is reflected in our growth chart on our website, www.mortgageinvestors.com
The mortgage industry is always changing, so are the rates. We have, do and will maintain to offer the best mortgage available to veterans...if it is a fixed rate, so be it! If it is a hybrid, so be it! IT IS THE BEST AVAILABLE. This company stands by their name and ideals, we are Mortgage INVESTORS. We invest in the mortgages of our millitary veterans and will continue to until there is no such thing as a loan!
Has your bank called to inform you when there is a lower rate? Would they?
Thanking you with a smile,
D.D.
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#5 UPDATE Employee

Numbers are facts

AUTHOR: Danny - (U.S.A.)

Remember that a fixed rate is based off of the ORIGINAL loan amount, so if your loan began at $150,000 and you pay 7% you pay the same 7% even when you only have $5,000 left on the loan. This fact confuses most people who are under the impression that a fixed loan is always best. So, while some continue to pay higher (fixed) interest rates and slowly watch their loan amount decrease, others pay lower interest rates and watch their loan amount decrease along with the rate while continuously saving money... paying their homes off faster.
Our company is legitimate, and every consumer has had a bad taste in their mouth from time to time (we have all had a lazy waitress, a snobby retail associate, etc). Mortgage Investors is proactive and hires admirable veterans, students and workers to be a part of their family. The owner is generous and friendly to all and takes pride in the company by coming to work daily! Personally speaking, he gifted my daughter a bicycle last Christmas along with thousands of other gifts to many who aren't even employees.
There is a lack of knowledge with mortgages because of all the current hype over rates and fear of foreclosures. We DO help, we WILL save you money, and we LOBBY in Washington D.C. for Veterans to maintain the benefits they currently have.
Our persistency, prudence and pride is reflected in our growth chart on our website, www.mortgageinvestors.com
The mortgage industry is always changing, so are the rates. We have, do and will maintain to offer the best mortgage available to veterans...if it is a fixed rate, so be it! If it is a hybrid, so be it! IT IS THE BEST AVAILABLE. This company stands by their name and ideals, we are Mortgage INVESTORS. We invest in the mortgages of our millitary veterans and will continue to until there is no such thing as a loan!
Has your bank called to inform you when there is a lower rate? Would they?
Thanking you with a smile,
D.D.
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