| Mortgage Consumers BEWARE
What is the name of your state? KS
[url]http://www.geocities.com/againstpreditory@sbcglobal.net/CAPML.html[/url]
There exists a group of sleazy and disreputable mortgage professionals who prey upon the public. These are experts at manipulating the law. They operate in tandam with an equally sleazy force of lawyers. And they must be stopped! That is why our organization was formed.
There is one practice in particular which these unscrupulous businessmen do which needs to be addressed. It is the practice of inserting hidden clauses in contracts in which a borrower will unknowingly promise to pay the broker or lender to find him or her a mortgage WHETHER OR NOT THE MORTGAGE IS ACTUALLY CLOSED. You may not believe it but this is not an illegal practice. In fact, a mortgage lender can sue a consumer according to the terms of the contract and win.
This is something which can be prohibited at the state as well as federal level. something which can be prohibited at the state as well as federal level. I urge everyone to write a letter to the President, your Senator, Congressman, the Governor of your State and all Elected Representatives. This is an actual Email I wrote to the President of the United States.
Dear President Bush
I wanted to alert you about a practice used by mortgage brokers which should be prohibited but is in fact perfectly legal. It is the practice of inserting clauses in a mortgage application which make the perspective borrow liable for all closing costs before the mortgage is closed. What this means is that the broker can demand that the applicant pay the closing costs even if the mortgage did not close. In fact, all a broker needs to enforce this in a court of law is a statement from the mortgage firm stating that they have secured a mortgage.
Now according to the Federal RESPA laws an individual can cancel a mortgage if they choose to within 3 days of closing. But if the contract states that the mortgage is not closed within a certain time period (say 3 to 6 months) and it is the fault of the borrower, than the borrower will be forced to pay the closing costs.
As a result the borrower may be forced to pay as much as $4000 or whatever the contract states, and not get anything in return.
As a victim of such a scam I can tell you that it is totally legal and there is nothing in the current law to prohibit this practice. In fact, courts will always side with the mortgage brokers because its a matter of contract law. If you sign the contract and you are sued than you have no defense.
That is why a law prohibiting this unethical practice must be put in place.
Please note that I do not seek to have Credit Check costs or Appraisal Costs prohibited. It is only the predatory practice of forcing applicants to pay for services which were not rendered which should be banned.
I ask that you sponsor and support a law forbidding the practices mentioned here.
Sincerely
(My name and address)  | 
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