Mortgage Documents 1 and 2.pdf Download this file

Loan 1: (Property value $150,000) A. $4,799 yield spread premium B. $500 processing fee C. $250 document preparation fee D. $50 courier fee E. $35 electronic filing fee F. $425 administration fee (lender fee)

Loan 2: (Property value $120,000) A. $1,440 yield spread premium B. $960 application fee C. $1,920 in "discount points" (paid to Scott Veerkamp) D. $409 administration fee (lender fee) E. $150 underwriting fee (lender fee)

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.

 

I do not qualify for legal action because my loan was initiated in 2004.  However, it is estimated that 60% of all mortgages across the nation contain Yield Spread Premium  (YSP). 

Please take time to review the letter (above) from a law firm in Indiana.  According to the letter, loans initiated within the last 3 years may qualify for legal action... 

Scott Veerkamp is the President of the Franklin Township School Board.  In addition, Scott is a member of the CIESC Advisory Council.  Clearly, this is a huge "conflict of interest" for three specific reasons... 

1. CIESC is collecting fees on (school buses) already paid for with Franklin Township tax dollars.  In other words, parents are being DOUBLE TAXED for their children's transportation to school. 

2. As many people know, Scott Veerkamp OWES MONEY in back taxes. 

3. Given this information, why are the residents of Franklin Township being DOUBLE TAXED by a School Board President that refuses to pay his own taxes?

Important video to review:

Scott Veerkamp:  Unpaid taxes..

Please take time to review the information in this blog entitled:  "Fighting foreclosure fraud by sharing the knowledge." 

Kathy Hendricks makes the following statement regarding Scott Veerkamp:  "I would like to hear more about Scott as I have a problem with him also." 

I want Kathy to know I am informing the public about the shady business tactics of Scott Veerkamp in my blogs.  For obvious reasons, it is important for the public to know Scott collected large sums of money with "kickbacks" on Predatory Loans.

1. "When a situation such as this is brought to our attention, we want you to know that we care and do what we can to try and assist in resolving problems."

2. "Since receiving your letter, I have forwarded a copy of it to REMAX of Indiana and have requested they look into the matter."

3. "We at REMAX International, believe that the REMAX network of offices and sales associates is the finest real estate organization in the world."

4. "It is our sincere hope that this matter can be amicably resolved."

5. "It is our further hope that all involved will learn from this experience and will have improved relationships and communications in the future."

6. "Your willingness to communicate your concerns to us is not only appreciated, but is extremely important to our organization."

7. "We are committed to finding better ways to serve the public..."

8. "Our excellent reputation is the result of a commitment on the part of each REMAX affiliate to provide the finest in professional real estate services."

A. Standard of Practice 1-3 Violation in the NAR Code of Ethics.  B. Documentation of Predatory Lending with Yield Spread Premium.  C. False advertising in Christian Phone Book.  D. Scott refuses to conduct an "open house."  E. Scott attempts to sell my property on a land contract with a "due on sale clause."  F. REMAX Central removes my property from the MLS without my permission.  G. $26,000 profit when Scott "flipped" his REMAX Central listing at my expense.   

Conclusion:  The REMAX organization ignored all of my attempts to contact them for assistance.  This includes my attempts to contact them after Scott removed my property from the MLS on June 25, 2005.  To my knowledge, REMAX did nothing to prevent Scott Veerkamp from preying on the public with Yield Spread Premium. 

1.  The Bill Worley appraisal. 

Here are the numbers for the price per square foot of each comparable:  A. $81.10  B. $96.40  C.  $86.61  (The average price of the comparables is $88 per square foot.)

2.  The square footage shown on the 8202 Eaton Court property is 1,450.  1,450 times $88 per square foot equals $127,600 in property value.

3.  Mysteriously, Bill Worley is showing the 8202 property as having a value of $140,000 on his appraisal dated June 14, 2005.

4.  Here are the numbers for the square footage of each comparable in the Bill Worley appraisal:  A. 1,714  B. 1,555  C. 1,732  (The average square footage of the comparables is 1,667.)

5.  Please compare 1,667 square feet to the square footage shown on the 8202 property in the Chad Barker appraisal.  The square footage shown for the 8202 property in the Chad Barker appraisal is 1,388. 

6.  As a comparison:  1,388 times $88 per square foot equals $122,144 in property value.  

7.  Clearly, the square footage in the Bill Worley appraisal shows evidence of a mysterious "growth spurt."  The square footage was inflated from 1,388 in the original appraisal to an average of 1,667 in the Worley appraisal. 

8.  I had to go to an independent real estate agent to get Comparative Market Analysis because the information Scott Veerkamp provided was FALSE.

9.  The Comparative Market Analysis showed properties were selling at an average of $82 per square foot in this neighborhood.

10.  The square footage shown for the 8202 Eaton Court property was 1,420.  1,420 times $82 per square foot equals $116,440 in property value.  

11.  Please pay close attention to the exhibit regarding the NAR Code of Ethics.  Standard of Practice 1-3 states the following:  "REALTORS in attempting to to secure a listing, shall not deliberately mislead the owner as to market value."

12.  Scott deliberately misled myself and Chris Moore on the value of the property.  After reviewing Comparative Market Analysis, Chris Moore's potential loss on the property would have been -($28,560) the day he signed the contract. 

13.  Obviously, Scott has a unique perspective on "protecting the interest of his clients" and following the "Golden Rule."

14.  I continue to ask Scott Veerkamp this question:  Are David Worley and Bill Worley related?  Scott refuses to answer this question.  David Worley has his name listed on the MLS sheet as a contact with the "Scott Veerkamp Team" for the 8211 Eaton Court property.  (Please see "Exhibit H" in Scott's response to MIBOR.)

Here is a quick summary of what happened with the Bill Worley appraisal:  A. Scott Veerkamp inflated the value of the property to induce purchase in September of 2004. B. As discussed, Scott attempted to sell the property to Chris Moore for $145,000 on contract.  C. Scott "painted himself into a corner" when I filed the complaint with MIBOR.  D. He had no documentation to support the inflated price of $145,000 on May 10, 2005.  E. Obviously, Scott knew the Comparative Market Analysis would not support the $145,000 price he quoted.  (CMA showed an estimated value of $116,440.)  F. Therefore, he put himself in a position where he had to pay $300 to "create" a value for the property on June 14, 2005.  G. This is the only way he could "cover himself" in his response to MIBOR.

In doing some research on the Code of Ethics, I found the following
information listed on the RE/MAX International website: "The REALTOR
you hire adheres to a strict Code of Ethics and professionalism while
protecting ownership of property." "In the U.S., all of our agents
are members of their local REALTOR board and uphold the associated
strict Code of Ethics."

Please be advised that I am providing evidence of "Bait and Switch"
advertising on behalf of Scott Veerkamp and his organization. Scott
and his company ran the following advertisement in Christian Phone
Book: "We will do our very best to help you get the lowest interest
rates possible at the lowest possible price."

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 listed Jonathan D. Nicholas as a "connection" on Plaxo.  Perhaps this is one of the reasons why Jonathan refused to meet with me and discuss the Predatory Lending tactics at REMAX Central.  Nonetheless, I find it strange that Jonathan would recognize Scott with a specific award when he knew Scott was preying on the public.

With regard to Predatory Lending, I discovered an article from NAR entitled:  "Realtors seek to protect home buyers from Predatory Lending and educate them on mortgage products."  The article contains the following statement:  "A brochure, How to Avoid Predatory Lending, produced jointly by NAR and the Center for Responsible Lending identifies the warning signs of Predatory Loans." 

I have a suggestion regarding this issue.  Can someone from NAR teach Scott Veerkamp how to "identify the warning signs of Predatory Loans?"  Clearly, Scott needs extensive training on this topic.

As you know, the Center for Responsible Lending has a significant amount of documentation on the common abuses of Predatory Lending.  Please review this information regarding Yield Spread Premium and Loan Steering.