- Report: #1132672
Report - Rebuttal - Arbitrate
Complaint Review: Scott Veerkamp Real Estate
Scott Veerkamp Real Estate3420 South Post Road Indianapolis, Indiana USA
Scott Veerkamp Real Estate Scott Veerkamp Real Estate: Loan Steering and Financial Harm to Consumers Indianapolis Indiana
*Author of original report: Scott Veerkamp Misleads With Bait and Switch
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Scott Veerkamp is the President of the Franklin Township School Board and a member of the National Association of Realtors. I have documentation of two loans initiated by Scott containing Yield Spread Premium...
Loan 1: Contains a $1,440 Yield Spread Premium on a $120,000 property.
Loan 2: Contains a $4,799 Yield Spread Premium on a $150,000 property.
(a) The following documentation is not an example of a loan initiated by Scott Veerkamp. I am merely providing this example to show the financial impact of YSP on the homeowner.
(b) On average, mortgage brokers receive 1% of the loan amount each time they raise the interest rate .25%. In other words, the lender pays the broker a "kickback" for increasing the interest rate on the loan.
(c) What is the difference in cost between a 6% rate and a 6.5% rate on a $200,000 loan over 30 years? Here is the answer according to bankrate mortgage calculator: -($23,414.40)
(d) On the mortgage above, the broker would receive a $4,000 kickback or (2% of the loan amount) for increasing the interest rate .5%. Therefore, a family would pay an extra -($23,414.40) over 30 years because they did not receive the interest rate they qualified for.
(e) I believe most families would prefer to invest the $23,414.40 in EDUCATION. Clearly, this makes more sense than "wasting it" with a predatory loan.
(f) Therefore, I am asking Scott Veerkamp to answer the following questions: 1. How does Predatory Lending "protect and promote the interest of the client"? 2. How does Yield Spread Premium "keep the interest of the client above all else"?
*You can find YSP on the settlement in your mortgage documents. It will be listed as POC or "paid outside of closing".
This report was posted on Ripoff Report on 03/22/2014 07:08 AM and is a permanent record located here: http://www.ripoffreport.com/r/Scott-Veerkamp-Real-Estate/Indianapolis-Indiana-46239/Scott-Veerkamp-Real-Estate-Scott-Veerkamp-Real-Estate-Loan-Steering-and-Financial-Harm-1132672. 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.
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