If You Have An Adjustable Rate Mortgage, There Is A 45% Chance Your Lender Owes You $1,500 Or More
Posted by admin under: Main Nov 30If you have an ADJUSTABLE RATE MORTGAGE, there is a 45% chance your lender has been miscalculating your interest, and owes you $1,500, or more!
Adjustable rate mortgages (ARM’s) were introduced in the United States over 25 years ago, and since their inception, mortgage lender’s have constantly added new, and supposedly improved ARM products. Lenders do this for a number of reasons, but the main reason is that lenders add new products so they can sell more loans.
Now, although ARM’s serve a vital place in real estate finance, there is one major drawback that the public is just now learning, the lender often makes mistakes on calculating interest, resulting in overcharges to the mortgage holder.
Until now, there was really no way for a homeowner to “audit” their mortgage for mistakes. That has all changed. There is now a company that serves this much-needed nice of mortgage finance.
Why are there mistakes on ARM’s?
There are number of reasons, but the main reasons are:
1) Most loans that are originated are sold to other investors between one and three times. Each time the loan is sold, there is a chance for more errors. Humans have to input data in a computer, which leaves room for error
2) ARM’s have adjustment periods when the interest is adjusted, some monthly, some every 6 months, and some every year. here is where the majority of mistakes are made, in the adjustment of the interest rate.
Listen to what the former New York State Attorney General, Robert Abrams had to say on the subject “If you have a mortgage, there is a 50/50 chance that, by fraud or incompetence, your bank is overcharging you”
~New York State Attorney General - Robert Abrams
According to mortgage and banking “watchdogs”, mortgage industry overcharges occur in an estimated 47.5% of all Adjustable Rate Mortgages (ARMS) and cost Americans over $60 billion.
Information substantiated in independent audits by the F.S.L.I.C and the General Accounting Office confirms that almost 50% of ARMS have errors and overcharges to homeowners.
Want some more fascinating statistics that are sure to anger you?
The bottom Line? Don’t trust that your bank or mortgage company’s figures, have your mortgage audited by a professional for mistakes.
The best known mortgage auditing company is The Adjustable Rate Mortgage Police, located at http://www.armpolice.com
Donald Timms is Founder and President of the Adjustable Mortgage Rate Police, located at http://www.armpolice.com Donald is also Branch Manager of Equipoint Financial, a mortgage banker/broker that originates over $1 Billion dollars annually.
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Source: If You Have An Adjustable Rate Mortgage, There Is A 45% Chance Your Lender Owes You $1,500 Or More
Friday, November 30th, 2007 at 4:33 pm and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.