What kind of violation is this.?

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Hi I have a simple but little tricky question.
I believe there are three ways to purchase a house.
1.Pay cash – If you are a millionaire..
2.Hire Mortgage Broker – They will contact with Wholesale Lender
3.Contact with Bank directly – Bank has it’s own Loan Officer.
*If someone doesn’t tell the difference between mortgage broker and loan officer, go to yahoo and search “mortgage broker vs. loan officer” .
Here is my story.
Year 2004 I met Mr.Kim who was a mortgage broker.He always tell others that if someone wants to buy a house, they have to hire a mortgage broker to process their loan(He was acting that option #3 does not exist. That way he could get more jobs to sell.). *Someone might say “Why did you trust the mortgage broker? You are stupid…” You will be surprised to know how so many people have no knowledge about these whatsoever.
Anyway I trusted him and year 2005 I purchased my first house.
I filled out loan application and prepared all the documents which was prepared by Mr.Kim. The loan was approved: both first and second lender was major Banks. Exactly 2months later, I received a check book by XX (also major bank) bank. I asked my mortgage broker about this and he said that this was a home equity line of credit by XX bank (3rd mortgage): it was issued based on the current value of my property (there’s no loan application and no appraisal report..ect.) and my excellent credit. I had no doubt about this at that time (because it was issued from a major bank) and I used the money for home improvement. My mortgage broker, Kim was sentenced for financial fraud for other cases(currently he is in federal prison)
In the mean time, my mortgage payment was increased dramatically because it was a MTA program which I had no idea what that was at that time… My monthly payment doubled after 2 years and I had reached a point where I could not make all three mortgage payment including the 3rd mortgage. As the real estate market crashed, the value of my house dropped greatly and I could no longer able to make payment. I knew something was not right. I heard about Mortgage Audit from internet one day and decided to do that. I requested all the documents (including original loan applications..) from the all three lenders.
I was surprised to see that there were loan officer’s name which I had no idea because I had never met any loan officers. Not only that but also the information on the loan application had wrong information which was prepared by mortgage broker?? or the loan officer??
Since the lender was not a whole sale lender, I had learned that the loan officer from the lender must meet with the borrower directly(Patriot Act?).
What do you think about this whole loan process? I want to know how big crime it is when the loan officer never contacted the borrower and accept all the documents from the mortgage broker and approve the loan despite of all the wrong information on the loan documents??
* Some of you might say, “You signed the documents at the settlement and it is your responsibility”
However both the mortgage broker and the title agent are currently imprisoned. During the settlement, it is almost impossible to review every single document and sign them. I had to trust whatever I sign because it was conducted by title lawyer. Who would not trust “LAWYER” ?? DO YOU THINK LENDER GAVE US A MONEY BECAUSE THEY ARE CHARITY WORKERS?

Hi I have a simple but little tricky question.
I believe there are three ways to purchase a house.
1.Pay cash – If you are a millionaire..
2.Hire Mortgage Broker – They will contact with Wholesale Lender
3.Contact with Bank directly – Bank has it’s own Loan Officer.
*If someone doesn’t tell the difference between mortgage broker and loan officer, go to yahoo and search “mortgage broker vs. loan officer” .
Here is my story.
Year 2004 I met Mr.Kim who was a mortgage broker.He always tell others that if someone wants to buy a house, they have to hire a mortgage broker to process their loan(He was acting that option #3 does not exist. That way he could get more jobs to sell.). *Someone might say “Why did you trust the mortgage broker? You are stupid…” You will be surprised to know how so many people have no knowledge about these whatsoever.
Anyway I trusted him and year 2005 I purchased my first house.
I filled out loan application and prepared all the documents which was prepared by Mr.Kim. The loan was approved: both first and second lender was major Banks. Exactly 2months later, I received a check book by XX (also major bank) bank. I asked my mortgage broker about this and he said that this was a home equity line of credit by XX bank (3rd mortgage): it was issued based on the current value of my property (there’s no loan application and no appraisal report..ect.) and my excellent credit. I had no doubt about this at that time (because it was issued from a major bank) and I used the money for home improvement. My mortgage broker, Kim was sentenced for financial fraud for other cases(currently he is in federal prison)
In the mean time, my mortgage payment was increased dramatically because it was a MTA program which I had no idea what that was at that time… My monthly payment doubled after 2 years and I had reached a point where I could not make all three mortgage payment including the 3rd mortgage. As the real estate market crashed, the value of my house dropped greatly and I could no longer able to make payment. I knew something was not right. I heard about Mortgage Audit from internet one day and decided to do that. I requested all the documents (including original loan applications..) from the all three lenders.
I was surprised to see that there were loan officer’s name which I had no idea because I had never met any loan officers. Not only that but also the information on the loan application had wrong information which was prepared by mortgage broker?? or the loan officer??
Since the lender was not a whole sale lender, I had learned that the loan officer from the lender must meet with the borrower directly(Patriot Act?).
What do you think about this whole loan process? I want to know how big crime it is when the loan officer never contacted the borrower and accept all the documents from the mortgage broker and approve the loan despite of all the wrong information on the loan documents??
* Some of you might say, “You signed the documents at the settlement and it is your responsibility”
However both the mortgage broker and the title agent are currently imprisoned. During the settlement, it is almost impossible to review every single document and sign them. I had to trust whatever I sign because it was conducted by title lawyer. Who would not trust “LAWYER” ?? DO YOU THINK LENDER GAVE US A MONEY BECAUSE THEY ARE CHARITY WORKERS?

5 Comments
  1. Reply
    Maj. Beltran
    February 4, 2011 at 3:19 pm

    Your question gave me a headache.

    I would suggest strongly that you contact an attorney that specializes in real estate.

    To me it sounds like you may have a case based on fraud, simply on the basis that your broker seemed to have filled out and filed papers on your behalf with out your approval.

    Good luck.

  2. Reply
    kemperk
    February 4, 2011 at 3:27 pm

    mortgage brokers use loan officers–that is who processes the
    loans for the MBs.

    I prefer MBs because they seek out better deals than most banks
    will offer–but they cost 1 +points at close.

    [one can also get a seller to carry paper under many circumstances,
    thus, that is method #4]

    Since the lender was not a whole sale lender, I had learned that the loan officer from the lender must meet with the borrower directly(Patriot Act?).

    false; few borrowers ever meet the loan officer and it is
    not necessary.

    My suggestion is to email me and I can give you some suggestions
    on how to get your interest rate lowered, your mortgage lowered
    and get back on an even keel.

    NOT all Loan officers are crooks…….

    sorry you got taken; I also lost 16k in points on a loan I took
    when I was desperate 5 yrs ago.

  3. Reply
    Michael S
    February 4, 2011 at 4:09 pm

    First, there is nothing wrong with using a mortgage broker. In fact, often times the broker can and will get you a better deal. Now, all of the other issues dealt with fraud. Unfortunately, in my experience as a realtor, I have found that there are alot of people in all aspects of this business that are crooks. It sounds like whether it is a crime doesnt since he is in prison

  4. Reply
    Brenda W
    February 4, 2011 at 4:19 pm

    Charity workers? I doubt it. Greed is more like it.

    Sounds like you’re reaching out for validation since only attorneys are qualified to give advice in your situation. Unfortunately, you are among the countless of others victimized by the unethical practices of predatory lending. Thankfully, some of those involved in your transaction are getting their just due now in prison. Sadly, too many others guilty of the same predatory lending practices are still amongst us. The travesty is their “crime” has resulted in this financial crisis ALL of us are now experiencing.

    If you’re wondering what now to do, accept your situation, confront it head on and deal with it through those now servicing your loan. On the upside, the nation is sympathetic to those like yourself especially if your loan(s) is with one of those who’ve received bailout assistance. They are expected to work with you. Suggest a no-cost refinance at their lowest interest rate. If the payment(s) is(are) still too high at the lowest rate, request a longer amortization schedule, for example a 40-yr loan.

    Your anger is understandable, however, get past it and get help. I sincerely hope help comes to you quickly.

  5. Reply
    estielmo
    February 4, 2011 at 5:17 pm

    It seems you spent money you didn’t have (line of credit) merely because you had blank checks that allowed it. Your line of credit was based on the highest level of the home value bubble and you spent it like a drunken sailor.

    You had three mortgages on a single property just because it was possible. You never blindly trust anyone to say “just sign here and here and here” unless you understand exactly what you are signing.

    You screwed yourself with help from those guys.

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