Mortgage Servicing Fraud

The servicing mortgage company is the company to whom you make your payments. The servicing mortgage banks prey on your erroneous belief you can save time and money refinancing with them.

Refinancing with your current servicing mortgage company gives absolutely no cost or time savings!

But they know, you don’t know that.

And the loan your current servicing company offers is a horrible loan to boot.

Many mortgage servicing company refinance options are terrible for you but great for them. Their loan applications typically include an interest-only or adjustable rate program so you can see an attractive lower payment.

Their hope is you’ll pay more attention to the monthly savings, trust their “big name”, and investigate no further.

Big banks don’t have your best interest in mind regardless if you are a current customer or not. Banks are as ruthlessly profiteering as any oil company and your misguided trust is exactly what keeps them perpetrating this lie.

Another misguided thought: When purchasing, believing you’ll get special consideration from your current servicing mortgage company because they “know you”.

You think you get a better deal with the company you make your current payments to because somehow they can look at your payment history and say “wow these guys made all their payments on time….we should give them a special deal.”

Trust me, it doesn’t work that way!

I can’t stress this enough, big banks are NOT the low cost provider of home loans. You just get shuttled to their retail division, assigned a salesperson (not a home loan professional), and pay a higher rate like everyone else.

Why are Mortgage Banks (Including Your Mortgage Servicing Bank) More Expensive?

National banks originate and fund your loan with their own money. This is important because the law (the same law the banking lobby had changed in 1999) does not require a bank to disclose the profit they make from originating and closing your loan at a higher rate than you qualify for…which they do routinely.

At the same time, mortgage brokers ARE required to disclose…even though it’s difficult, you can even get a broker to show you the wholesale rate sheets which will never happen with your servicing mortgage bank.

To learn how to find and hire the RIGHT local broker who will disclose everything and even share rate sheets with you, check our our Mortgage Advantage shopping system.

Good Luck!

Author: Rob K. Blake
Published December 28, 2007