Scott Veerkamp used Yield Spread Premium to receive kickbacks from lenders. Ask Scott to return the kickbacks he collected on predatory loans.
The financial benefit of Yield Spread Premium belongs to the client...
You can find Yield Spread Premium on the settlement statement in your mortgage documents. It will be listed as P.O.C. or paid "outside of closing." This shows the dollar amount of the kickback your broker received for inflating your interest rate.
The Center for Responsible Lending estimates excessive interest rates cost families $2.9 billion each year. Please take time to review the following information regarding Yield Spread Premium and Loan Steering...
YouTube Video: Yield Spread Premium...
YSP and the Center for Responsible Lending:
http://www.responsiblelending.org/mortgage-lending/research-analysis/ib-ysp-110507-final.pdf
CRL and Equity Theft:
http://www.responsiblelending.org/mortgage-lending/tools-resources/ib011-YSP_Equity_Theft-0604.pdf
Predatory Lending and the National Association of Realtors:
http://www.zimbio.com/Exposing+Scams/articles/15VN_4Q6HLA/NAR+Predatory+Lending+Information
CRL: Seven Signs of Predatory Lending
http://www.zimbio.com/Exposing+Scams/articles/AKevJQHWOKO/Center+Responsible+Lending+Seven+Signs+Predatory
Upon review, you will see two examples of "Bait and Switch" advertising in this message. Please take time to review the following examples...
Example #1: A $4,799 Yield Spread Premium does NOT represent "the lowest possible interest rate." Again, I refer you to the Center for Responsible Lending and their definition of Yield Spread Premium: "A YSP is a cash bonus that a broker receives from a lender for placing borrowers in a loan with a HIGHER interest rate than the lender would accept. The higher the interest rate, the higher the premium received by the broker." "The effect of YSP is to steal equity from struggling families."
Example #2: A $960 application fee does NOT represent the "lowest possible price." As discussed earlier, the National Association of Mortgage Brokers says it is not necessary to pay an application fee. Therefore, "the lowest possible price" for an application fee is ZERO.
With regard to advertising, the Better Business Bureau defines "Bait and Switch" in the following manner: "A "bait" offer is an alluring but insincere offer to sell a product or service which the advertiser does not intend to sell. Its purpose is to SWITCH consumers from buying the advertised merchandise or service, in order to sell something else, usually at a HIGHER price or on a basis more advantageous to the advertiser."
After reading this description, it is evident Scott Veerkamp meets all of the requirements for "Bait and Switch" advertising. Here are 4 key points to review: 1. Obviously, Scott was not sincere about offering "the lowest possible interest rate" or "the lowest possible price" to his clients. 2. He simply used these statements as "bait." 3. In the next step, Scott "switches" his clients to Yield Spread Premium and junk fees. 4. Clearly, these HIGHER fees are more advantageous to the advertiser.
In doing some additional research on the Code of Ethics, I found the following information listed on the Metropolitan Indianapolis Board of Realtors website: 1. "REALTORS shall be careful at all times to present a true picture in their advertising and their representations to the public." 2. "The Code of Ethics is a promise to the public that when dealing with a real estate agent who is a REALTOR, they can expect honest and ethical treatment in all transaction- related matters." 3. "Only REALTORS pledge to abide by the Code of Ethics, and only REALTORS are held accountable for their ethical behavior."
Previously, Scott Veerkamp deliberately misled the public when he presented the following statement on one of his websites: "As a Christian business owner, it truly is the desire of my heart to not be a "Superstar," but rather a "Super Servant" with the hope of achieving excellence by keeping the interest of my clients above all else."
Please note: Yield Spread Premium and junk fees represent the extreme opposite of the statement listed above. In fact, Predatory Lending puts the public at risk for serious financial harm. Unfortunately, this is the same public Scott Veerkamp claims to be "Serving."
Scott Veerkamp is the President of the Franklin Township School Board and a member of the National Association of Realtors. Please ask Scott to post a copy of his WARNING letter from the office of the Indiana Attorney General. In addition, please encourage Scott to provide a written response to items 1-16 on this website.
"Steering payments were made to brokers who enticed unsuspecting homeowners into deceptive and expensive mortgages. These secret bonus payments, often called yield spread premiums, turned home mortgages into a SCAM."
In addition, Senator Merkley references an article in the New York Times entitled "Predatory Brokers." The article makes two important statements regarding predatory lending: 1. "The first step must be to outlaw the kickbacks that lenders pay brokers for steering clients into costlier loans." 2. "The most clearly unethical form of payment is the so-called yield spread premium."
NAR members are supposed to help their clients avoid predatory lending tactics. The code of ethics requires them to follow the "Golden Rule" in the representation of their clients.
If Scott Veerkamp was applying for a loan, would he select a mortgage that is loaded with yield spread premium and junk fees? The answer to this question is obvious. Unfortunately, Scott refuses to comply with the "do unto others" philosophy in the code of ethics. He uses NAR as a selling tool to build trust with his clients. After gaining trust, he "blindsides" his clients with YSP so he can receive a kickback on their loan.
I have provided documentation Scott collected nearly $10,000 on two separate mortgages using YSP and junk fees. This is an average of $5,000 per loan. This type of lending represents the extreme opposite of "protecting the interest of the client."
As I mentioned earlier, predatory lending can cause serious financial harm to the unsuspecting public. Therefore, I agree with Senator Merkley when he says yield spread premium has turned the home mortgage industry into a "SCAM."