Equal Home Finance Bureau ALERTS!

Mortgage Brokers Should be Ashamed: Attempting to Use the 9/11 Tragedy for Profit

The Equal Home Finance Bureau has just received mailings from mortgage brokers attempting to use the tragedy of September 11 to further their own profit. In one such letter we received, a mortgage broker has been canvassing high-priced home areas promising the following:

"During the month of November, we will donate $25.00 dollars for every 1st mortgage loan that is funded during that month. If you feel the need to refinance to obtain a lower rate or get cash out, now is the time to do it, not just for you, but also for a worthy cause."

What's wrong with this? Several things that show this particular broker is one of the most unscrupulous.

The mortgage broker stands to make approximately $3,000 to $5,000 for every loan she brings in. The $25.00 she would donate comes after she has taken hundreds if not thousands of dollars more from you than is fair - hardly a show of faith in the nation. In fact, she specifically mentions donating only on 1st mortgages. Why? She told us that she can't make as much on home equity loans or home equity lines of credit. We've received complaints about this particular mortgage for having increased her closing fees by several hundred dollars. The mortgage broker threw many extra, unexpected charges into the final closing one way of easily making up for the $25 donation. Third, we "secret-shopped" this particular mortgage broker, and she openly bragged over-the-phone about how much money she made in a year, saying it was "well over $200,000." How amazingly shameless.

If you want to help a worthy cause, send your donations directly to the Red Cross or the Firefighters Fund or other organization of your choice. Avoid the pitiful promises of unscrupulous mortgage brokers and lenders like this one. Follow our tips on how to save thousands getting your home loan, and you'll be able to donate much more to truly worthy causes, instead of donating to some broker's pocketbook.

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