Report: #197614

Complaint Review: American Financial Resources - DENVILLE New Jersey

  • Submitted:
  • Updated:
  • Reported By: New Fairfield Connecticut
  • American Financial Resources
    273 E MAIN ST
    DENVILLE, New Jersey
    U.S.A.

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In early October 2005, I found a home I wanted to purchase in New Fairfield, CT. The realtor I found the home through recommended a mortgage broker by the name of Joseph Cilento (AKA: Joe Cilento). I was doing 100% financing on this new home because I had not sold my existing home yet. I was doing this 100% financing by completing an 80 - 20 loan. This is where you get 2 loans, one regular 1st mortgage for 80% of the homes value and another 2nd mortgage for 20% of the homes value. I was planning on paying off the 20% portion as soon as I sold my old house. The problem I had was with the the 1st mortgage 80% home loan portion. I spoke to Joe Cilento by phone and he informed me that I could get a rate of about 6.25% on my 30 year fixed home loan with no points. I told him I wanted to get the rate under 6% and asked how I could do this. He suggested I pay 1.25 points to lower the rate to 5.875%. The 1.25 points would cost me about $3,420, but I thought it was worth it to lower the rate. I asked for this information in writing and he sent me the following email: ------------------------------- Todays rates for your loans are as follows: purchase price : 342,000 1st mortgage : 273,600 80% , monthly pymt = $ 1,618 2nd mtge : 68400 20%, monthly pymt = $ 399 taxes and ins est) = $ 450 total 342,000 100% $ 2,467 1st mortgage : 5.875 %, 30 year fixed , no prepayment penalty. Points are 1.25% based on a 20 % second mortgage . Monthly 2nd mortgage fixed 7.5& with 1 point or variable at 7.0% with 1 point. If you put 5% down payment , the points on the first mortgage are reduced to .25% Let me know if you wish to proceed. Joe Cilento 203-994-6087 ------------------------------- I was also speaking to another mortgage broker who offered me the same deal, but I decided to go with Joe Cilento and his company American Financial Resources (AFR Mortgage) because I had spoke to him 1st and I thought it was fair to give him the loan. I forwarded my information to them and began the loan process. I was told my rate would be fixed at 5.875% as per our original agreement. I filled out all the necessary forms and was in constant contact with the lender about the loan. The entire time, I was told that verbally my rate was fixed at 5.875%. I received my closing estimate documents which again stated the rate of 5.875%. I had every reason to believe everything was fine and just as had been discussed previously. The whole thing changed when I got to my closing on December 1st. I saw the rate had changed to 6.25%, which I was originally told was the rate I could get without paying any points, except the were still charging me the 1.25 points ($3,420). I was of course very upset about this and called Joe Cilento at the closing. He informed me that I had never locked the rate. I told him that he had repeatedly told me the rate was locked at 5.875%. Basically he back tracked and lied and said he never said that. They raised the rate .3875% and still took the points. Unfortunately, I had no choice but to close on that day or I would have lost the house, plus I had already paid the movers and arranged for someone else to rent my old house. I had to close that day. My lawyer informed me I should take it up with the Connecticut Department of Banking. I did write a letter to the Connecticut Department of Banking and they began to research it. Richard Dubnoff the CEO of American Financial Resources repeatedly lied to them. 1st he stated to them that I never locked and was therefore locked at the market rate on my closing. I went back to the Department of Banking and explained about the points and sent them my email correspondence with Joe Cilento. I then asked why would I pay them almost $3,500, if I was going to get the regular market rate anyway. The went back to AFR Mortgage about this and Rich Dubnoff responded in a letter that the $3,420 was their profit on the loan, even though the closing documents clearly state this was a "Loan Discount fee", separate from their "Mortgage Broker fee" (about $600 more). Why would I possibly pay $3,420 plus the $600 to a mortgage broker just to get a loan when any normal broker charges probably around $500 - $700 total. Unfortunately, the Connecticut Department of Banking said there was nothing they could do because it is my word against theirs and I didn't have a written lock rate document. I agree that I was misinformed by not requesting the written lock rate letter, but I honestly didn't even know I needed it. This is only the 2nd home I ever purchased and the first loan I did through my bank, so there was none of this deception or fraud. Of course in the future I will always get this letter, but that is still not a good reason for them to bait and switch, lie to me and the state department of banking and rip me off for $3,420. SUMMARY: Joe Cilento and American Financial Resources, offered me a rate of 5.875% with 1.25 points. I was told this rate was locked. They then raised the rate on the closing date without ever mentioning anything to me and still took the points, then when I complained to the regulators, the CEO of the company Richard Dubnoff proceeded to consistently lie and deceive them just to continue ripping me off and scamming me on this home loan. Thank you for reading my story and I highly suggest you DO NOT EVER USE Joe Cilento or American Financial Resources as your mortgage broker or mortgage company under any circumstances. They will, in my opinion, do everything they can to rip you off and scam you if given the chance. If you do use them or any mortgage broker for that matter make sure you learn something from this story and get everything in writing including the written lock rate letter. Dan New Fairfield, Connecticut
U.S.A. Click here to read other Rip Off Reports on American Financial

This report was posted on Ripoff Report on 06/22/2006 12:29 PM and is a permanent record located here: https://www.ripoffreport.com/reports/american-financial-resources/denville-new-jersey-07834/american-financial-resources-afr-mortgage-amerifirst-financial-mortgage-broker-joseph-c-197614. 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. READ: Foreign websites steal our content

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#1 Consumer Comment

If not over this...

AUTHOR: Bman - (United States of America)

Here are some suggestions for complaint about this company, then check QUICKEN LOANS on this site to see how lousy a company can be!




Contact Your United States Senators




 




Every state has two United States Senators. Senators are elected on a state wide basis and represent your entire state in Washington D.C.. Your United States Senators have enormous power and enormous influence. A simple letter or phone call from a U.S. Senator's office can move mountains. Every United States Senator has an office that deals with constituent complaints involving a number of issues -- every problem imaginable are handled by your United States Senators' office. Plus, they want to get re-elected and they serve their voters not the business.




http://www.senate.gov/




 




Contact Your United States Congressman/woman




 




Unlike Senators, your state has anywhere from one to over 50 United States Congressmen/women. In your congressional district, you have ONE United States Congressman/woman. Like Senators, members of Congress deal with a huge amount of voter problems -- you name the topic, and they can and will help you.




https://writerep.house.gov/writerep/welcome.shtml




 




Contact The United States Department of Justice




 




The Department of Justice is the federal government's chief law enforcement agency and prosecutorial office.




http://www.justice.gov/




 




And my favorite:




Contact The Federal Trade Commission (FTC)




 




It is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy. The FTC pursues vigorous and effective law enforcement; advances consumers interests...




This is the agency that companies fear.




http://www.ftc.gov/reports/index.shtm




 




Contact The Securities and Exchange Commission (SEC)




 




This agency regulate all companies that are trading stock publicly. They also are very concerned with companies who engage in fraudulent activity which might manipulate their stock price and give investors a false picture of the truth of a company's heath.




http://www.sec.gov/complaint.shtml




 




Contact The Internet Crime Complaint Center (IC3)




 




Report the offending company to this feared and effective government task force. Your aim here is to highlight the criminal and fraudulent nature of the companies activities. You must be able to detail how they wronged you and stole your money.




http://www.ic3.gov/complaint/default.aspx




 




Contact The Council of the Better Business Bureau




 




The Better Business Bureau is another group that many businesses need to answer to -- first it has enormous influence and second, many businesses are members. Since it is paid for by businesses it may not be as effective as the government agencies that are created to protect you.




http://www.bbb.org/




 




Contact The National Consumer Law Center




 




"The National Consumer Law Center (NCLC) is the nations consumer law expert, helping consumers, their advocates, and public policy makers use powerful and complex consumer laws on behalf of low-income and vulnerable Americans seeking economic justice.




Todays consumer marketplace is complex and full of potholes, even for those of us with all the necessary skills and advantages. For unsuspecting low-income consumers its far more treacherous - even the smallest misstep can lead to financial ruin and a sense of hopelessness that paralyzes individual progress."




http://www.nclc.org/




 




Contact The National White Collar Crime Center (NW3C)




 




They will help you with filing a complaint against the company showing you how to do it and provide other resources. White collar crime is a term coined for something that many businesses engage: it is fraud and outright theft committed by those wearing a white shirt and tie to work everyday.




http://www.nw3c.org/overview/what_we_do.cfm

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#2 UPDATE Employee

Company Response

AUTHOR: American Financial Resources - (U.S.A.)

American Financial Resources, Inc has been helping people with their home financing needs for over ten years. Our great company has already funded over a half-billion dollars to happy clients this year alone. As one of America's top 30 FHA lenders we take all complaints very seriously. Our goal is to provide the best financing for our clients. As in any business, a few complaints will arise when dealing with thousands of clients a month. Please consider the sheer volume of loans when evaluating our company's services. With over 250 employees and 100 loan officers, honesty, integrity and understanding has helped American Financial Resources, Inc not only survive but thrive during these tumultuous economic times.
Respond to this report!

#3 UPDATE Employee

Company Response

AUTHOR: American Financial Resources - (U.S.A.)

American Financial Resources, Inc has been helping people with their home financing needs for over ten years. Our great company has already funded over a half-billion dollars to happy clients this year alone. As one of America's top 30 FHA lenders we take all complaints very seriously. Our goal is to provide the best financing for our clients. As in any business, a few complaints will arise when dealing with thousands of clients a month. Please consider the sheer volume of loans when evaluating our company's services. With over 250 employees and 100 loan officers, honesty, integrity and understanding has helped American Financial Resources, Inc not only survive but thrive during these tumultuous economic times.
Respond to this report!

#4 UPDATE Employee

Company Response

AUTHOR: American Financial Resources - (U.S.A.)

American Financial Resources, Inc has been helping people with their home financing needs for over ten years. Our great company has already funded over a half-billion dollars to happy clients this year alone. As one of America's top 30 FHA lenders we take all complaints very seriously. Our goal is to provide the best financing for our clients. As in any business, a few complaints will arise when dealing with thousands of clients a month. Please consider the sheer volume of loans when evaluating our company's services. With over 250 employees and 100 loan officers, honesty, integrity and understanding has helped American Financial Resources, Inc not only survive but thrive during these tumultuous economic times.
Respond to this report!

#5 UPDATE Employee

Company Response

AUTHOR: American Financial Resources - (U.S.A.)

American Financial Resources, Inc has been helping people with their home financing needs for over ten years. Our great company has already funded over a half-billion dollars to happy clients this year alone. As one of America's top 30 FHA lenders we take all complaints very seriously. Our goal is to provide the best financing for our clients. As in any business, a few complaints will arise when dealing with thousands of clients a month. Please consider the sheer volume of loans when evaluating our company's services. With over 250 employees and 100 loan officers, honesty, integrity and understanding has helped American Financial Resources, Inc not only survive but thrive during these tumultuous economic times.
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#6 Author of original report

WARNING Joe Cilento mortgage broker rip-off scam

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

DO NOT EVER USE JOSEPH CILENTO or American Financial Resources as your mortgage broker or mortgage company under any circumstances. They will, in my opinion, do everything they can to rip you off and scam you if given the chance.

Further information about how this rip-off was done is available on the following websites:
http://www.american-financial-resources.com
and
http://www.joe-cilento-mortgage-broker.com
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#7 Author of original report

Joe Cilento mortgage broker rip-off scam artist, NY, CT, NJ

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

In early October 2005, I found a home I wanted to purchase in New Fairfield, CT. The realtor I found the home through recommended a mortgage broker by the name of Joseph Cilento (AKA: Joe Cilento). I was doing 100% financing on this new home because I had not sold my existing home yet. I was doing this 100% financing by completing an 80 - 20 loan. This is where you get 2 loans, one regular 1st mortgage for 80% of the homes value and another 2nd mortgage for 20% of the homes value. I was planning on paying off the 20% portion as soon as I sold my old house. The problem I had was with the the 1st mortgage 80% home loan portion.

I spoke to Joe Cilento by phone and he informed me that I could get a rate of about 6.25% on my 30 year fixed home loan with no points. I told him I wanted to get the rate under 6% and asked how I could do this. He suggested I pay 1.25 points to lower the rate to 5.875%. The 1.25 points would cost me about $3,420, but I thought it was worth it to lower the rate. I asked for this information in writing and he sent me an email confirming those rates.

I was also speaking to another mortgage broker who offered me the same deal, but I decided to go with Mr. CIlento and his company American Financial Resources (AFR Mortgage) because I had spoke to him 1st and I thought it was fair to give him the loan. I forwarded my information to them and began the loan process. I was told my rate would be fixed at 5.875% as per our original agreement. I filled out all the necessary forms and was in constant contact with the lender about the loan. The entire time, I was told that verbally my rate was fixed at 5.875%. I received my closing estimate documents which again stated the rate of 5.875%. I had every reason to believe everything was fine and just as had been discussed previously.

The whole thing changed when I got to my closing on December 1st. I saw the rate had changed to 6.25%, which I was originally told was the rate I could get without paying any points, except the were still charging me the 1.25 points ($3,420). I was of course very upset about this and called Joe Cilento at the closing. He informed me that I had never locked the rate. I told him that he had repeatedly told me the rate was locked at 5.875%. Basically he back tracked and lied and said he never said that. They raised the rate .3875% and still took the points. Unfortunately, I had no choice but to close on that day or I would have lost the house, plus I had already paid the movers and arranged for someone else to rent my old house. I had to close that day. My lawyer informed me I should take it up with the Connecticut Department of Banking.

I did write a letter to the Connecticut Department of Banking and they began to research it. Richard Dubnoff the CEO of American Financial Resources repeatedly lied to them. 1st he stated to them that I never locked and was therefore locked at the market rate on my closing. I went back to the Department of Banking and explained about the points and sent them my email correspondence with Joe Cilento. I then asked why would I pay them almost $3,500, if I was going to get the regular market rate anyway. The went back to AFR Mortgage about this and Rich Dubnoff responded in a letter that the $3,420 was their profit on the loan, even though the closing documents clearly state this was a Loan Discount fee, separate from their Mortgage Broker fee (about $600 more). Why would I possibly pay $3,420 plus the $600 to a mortgage broker just to get a loan when any normal broker charges probably around $500 - $700 total. Unfortunately, the Connecticut Department of Banking said there was nothing they could do because it is my word against theirs and I didn't have a written lock rate document.

I agree that I was misinformed by not requesting the written lock rate letter, but I honestly didn't even know I needed it. This is only the 2nd home I ever purchased and the first loan I did through my bank, so there was none of this deception or fraud. Of course in the future I will always get this letter, but that is still not a good reason for them to bait and switch, lie to me and the state department of banking and rip me off for $3,420.

SUMMARY: Joe Cilento and American Financial Resources, offered me a rate of 5.875% with 1.25 points. I was told this rate was locked. They then raised the rate on the closing date without ever mentioning anything to me and still took the points, then when I complained to the regulators, the CEO of the company Richard Dubnoff proceeded to consistently lie and deceive them just to continue ripping me off and scamming me on this home loan.

Thank you for reading my story and I highly suggest you DO NOT EVER USE JOE CILENTO or American Financial Resources as your mortgage broker or mortgage company under any circumstances. They will, in my opinion, do everything they can to rip you off and scam you if given the chance. If you do use them or any mortgage broker for that matter make sure you learn something from this story and get everything in writing including the written lock rate letter.
Respond to this report!