Mortgage Scam 1.
It’s a bank….you know Countrywide, Wells Fargo, Washington Mutual etc, Banks are not the low cost providers …big surprise, right! And they don’t have to disclose how they make their money.

Mortgage Scam 2.
They don’t have you sign anything…no application, good faith estimate etc. (self-explanatory)

Mortgage Scam 3.
They have you sign blank documents. Signing blank documents is worse than no documents.

Mortgage Scam 4.
They are uncomfortable or irritated discussing their compensation. Scammers can’t discuss and explain their total compensation without equivocation, run!

Mortgage Scam 5.
They push FHA and/or VA loans when they haven’t attempted a conventional approval first.

Mortgage Scam 6.
They push a sub-prime or bruised credit loan without attempting an “A” credit loan first.

Mortgage Scam 7.
They do not get immediate computer approval.

Mortgage Scam 8.
They promote a “fixed fee” or “No-Cost” loan….there is no such thing! rate hiking will cost you thousands over the life of the loan.

Mortgage Scam 9.
They promote ARMs in an increasing interest market.

Mortgage Scam 10.
They can’t explain how the index and margin come together to make a rate.

Mortgage Scam 11.
They don’t know the difference between a convertible and a non-convertible ARM.

Mortgage Scam 12.
They push negative amortizing loans like the “pick-a-payment” or “option” ARMs so predominant in radio and TV advertising these days.

Mortgage Scam 13.
They work part-time.

Mortgage Scam 14.
They are new to the business and therefore lacking in experience.

Mortgage Scam 15.
They were referred by a Website lead portal like LendingTree and others. These lending sites increase the cost of the loan. In the case of LendingTree, the increase cost is over $950!

Mortgage Scam 16.
They claim or allow you to assume, you can get the lowest rate simultaneously with a No-Cost or Flat Fee loan. An example is when you see a low rate on a Ditech commercial flashed right next to a flat fee offer of $395…they don’t go together, but you’ll only discover that after you call.

Mortgage Scam 17.
They use massive TV or Radio Ad campaigns. The cost of those ads gets re-couped by increased cost to you most likely in the hidden form of yield spread premium.

Mortgage Scam 18.
They collect a huge deposit. As in the case of Ditech, where they collect a NON-refundable $600!

Mortgage Scam 19.
They quote you a rate without first gathering important, rate-changing information like, type of loan, credit score, loan-to-value, and income qualifying vs. stated income, etc.

Mortgage Scam 20.
They don’t mention mortgage insurance when the loan to value is over 80%.

Mortgage Scam 21.
They can’t get a loan done in less than 20 days.