There are numerous companies and individuals who shamelessly prey on those who serve and served our country. This page will alert Congress and VA while simultaneously serve as a warning to our military and veterans about those who would fraud and mislead us without shame. Please leave a brief description of the fraud and/or deception you experience along with the date and company/individual name. This is in hopes that Congress will legislate stiff penalties for those who would target and deceive or fraud our military and veterans. In addition, we hope that VA will also incorporate measures to make Veterans aware of companies/individual who fraudulently state association with VA or blatantly deceive our veterans. Those of us with VA Home Loan guarantees are the primary target.
Comment to this page with your experience and I will append it to a complete list of these reported scams here:
This blog serves as a unified platform for all Veterans' to be heard and informed. All Veterans from all Military Services; from all periods of time, and from all types of service (voluntary or conscripted), or any political party. Our goal over the next four years is to show policy makers/administrators that we are a formidable force when we stand united with one voice. This blog will provide the medium for us to let them know we are United with our vote. "United we stand; Divided we fall!"
We, like so many Veteran families were fiscally challenged with our (medical) expenses rising and our income staying the same each year. When we turned 65 and lost TRICARE Prime for Medicare; our medical insurance went from $38.50/mo (TRICARE Prime) to $230/mo (Medicare)so we had to look elsewhere for the equalizer: refinance our VA mortgage to lower our monthly payment.
ReplyDeleteOn August 25, 2011 I received one of the many VA Refinance advertisements by mail that we all get regularly. This one was from Mortgage Investors Corporation (NMLS #3510). Hoping to also add in our credit card debt into the new mortgage, I called the company to ask them (Sharon) if they also could add cc debt into the mortgage. She refused to answer "any" questions about the refi. They could only make appointments for a saleperson to meet with us. I asked to be forwarded to someone who could and she would only forward me to Ruth who repeated exactly what Sharon had said. So I relented and made an appointment. On August 30, 2011 we met with Michael Gregory, their salesperson (and Loan Officer).
• He repeatedly showed us letters on "Official Stationery" stating that VA had selected them as exclusive representatives of their new ReFi program only for Vets. (Of course they were in a presenting notebook and not able to be examined closely by us)
• He repeatedly stated this was a "hybrid" adjustable mortgage and not an adjustable rate mortgage. He became disturbed whenever I stated that it was still an adjustable rate mortgage.
• He added that we had to sign that afternoon to lock in the 3% rate.
We should have shown him the door at this time but we were desperate and went ahead and signed and gave him a down payment (check). The next day, I called the VA Home Center in Atlanta (888) 768 2132 and asked them about this company and their deal. I was told that:
• VA does not hire or approved any specific company to represent them or any of their programs. (This would mean that those letters show to us were fraudulent)
• There is no current 3% rate out there that is legit.
• "They are a bunch of liars" "They 'prey' on vets"
I also took the contract to the base credit union and asked their Manager of the mortgage section to look it over. She told us that it was indeed an adjustable rate mortgage (she never heard of a hybrid arm). In this case, they could charge fees instead of raising the rate within the purview of the contract without limitations in addition to the max rates that could be made by adjustments (up to 8.00% from the initial 3%).
The base JAG said they could not help me other than advise me to cancel as soon as possible.
We called them to cancel immediately. It was not a polite conversation on either side and finally I was referred to someone else. Their closer no doubt. After more heated conversation, my request for cancellation was accepted and that my deposit check would be returned. I had to put a stop payment on the deposit check to ensure they would not be able to cash it. They never did return our deposit check.
By my definition, there was fraud and blatant intent to deceive the veteran and his wife. To be honest though, I cannot determine whether this was the sole intent of the representative and not part of the training or intent of the company. I have worked as a salesperson for a couple of companies and I have seen it both ways. Regardless, the company is responsible for the conduct of their employees and Veterans need to be aware of this possibility with this company.
Jack Feeman