Our Mission Statement 
 
We will educate American consumers regarding all aspects of their home financing.  We will teach each visitor how they can protect themselves from high interest rates and inflated fees, so they can save thousands during the loan process.  The goal is to identify dishonest mortgage lenders and brokers at the outset, so you will not experience surprises when it is time to sign for your loan.  We will also share with you the very best interest rates (without deception or a buy down on the rate)available on the day you apply for your loan.  Look below for today's Par rate, if your loan officer is offering you a higher rate, they are attmpting to make hidden fees on your loan.
 
Loan Modifications have now become the favorite vehicle used by scam artists preying on those in desperate need of help with their mortgage.  They make promises like "we will find errors in your loan documents, so you can get a new loan" when many homeowners could complete the modification process themselves if all they are doing is accepting what the loan servicer is offering.  Many of these so called "loan modification" companies are the very same mortgage brokers who gave homeowners loans that are costing so many their homes.  We will keep you advised of changing circumstances and will give you the warning signs of disreputable modification companies.
 

Today’s Par Rates

30-year Fixed:

4.625%

15-Year Fixed

 4.0%

FHA 30-year Fixed:

5-year ARM:

4.75%

4.0%

Last Updated:   September 30, 2009

The Par Rate is the wholesale rates that lenders offer brokers on any given day. They do vary slightly from lender to lender.  If the lender or broker is offering a rate that is .25% higher than those stated above, they are making 1 Point (1%) in rebate (hidden fees) on your loan, many times without disclosing this fact to you.  Lenders do not have to disclose this information to consumers at any time during the loan process.  Advertised rates that are below those above will cost you by having to buy-down the rate. The small amount of monthly savings by receiving a lower interest rate can take years to recoup the cost of that lower rate.
Alan Jablonski, Consumer Rights Attorney with Jablonski, Geragos & Campbell, California Mortgage Broker and author of “Successfully Navigating the Mortgage Maze” uses his years of experience to assist homeowners and buyers avoid high-cost loans and ridiculously high interest rates. Alan has focused on protecting borrowers from predatory lenders, misleading advertisements and slick talking loan officers who hide thousands in hidden fees costing U.S. consumers hundreds of millions every year.
 
The mortgage industry did not get its poor reputation by serving the financial needs of borrowers, honestly and faithfully. Now these very same people are claiming to be loan modification experts with no regard for the laws that protect consumers.  Consumers must arm themselves with critical information to protect their financial interests, avoiding high rates and fees offered by unscrupulous mortgage lenders and brokers who see borrowers as nothing but targets for their manipulation. The mortgage industry and their army of lobbyists have successfully thwarted all attempts at reforming current law that would assist consumers with understanding exactly what their loan is costing them. 
 
Although only a small portion of the information that you need can be placed on this site, a full, in-depth discussion of how to protect your financial interest when purchasing or refinancing your home can be found in Alan’s book “Successfully Navigating the Mortgage Maze,” click on the link in the left hand column to order your copy of this ultimate guide and we will forward it to you immediately. This guide will walk you through a step-by-step interview process, giving you the right questions to ask and answers to expect. It also gives you a few simple rules to follow that will ensure you get the loan you were promised at the best possible rate with the lowest available fees.
 
We have searched across the country for mortgage brokers that will commit to fully disclosing all the terms of your loan with no hidden fees and no surprises at signing. The brokers on our site have committed to give their borrowers the Par Rate (the lowest available wholesale rate on any given day) and charge no greater than 1 Point for loans larger than $300,000 and no more than $5,000 regardless of how large your loan needs are. These professionals have years of experience and have agreed to follow all the Commitments suggested in “Successfully Navigating the Mortgage Maze.”. By contacting a “Full Disclosure Mortgage Broker (FDMB)” you will be assured of not only the best fee and rate structure, but they will discuss your needs without demanding your Social Security number, just click on this link, FDMB, to find a mortgage broker in your state. If your state does not currently have a FDMB, contact us and we will find and honest broker, that will agree to all the Commitments prior to speaking with  you.
 
Alan Jablonski is in high demand as a professional speaker, educating audiences across the nation regarding the loan process and how to protect themselves. He has charmed audiences with his wit and knowledge, helping listeners to identify misleading advertisements and dishonest lenders and brokers. Alan has addressed employees of Police Departments, Non-Profits, and large Corporations, taking all questions either at the end of the seminar or during a follow-up discussion for those who need immediate answers to their mortgage situation. If you are interested in speaking with Alan about educating your companies employees click on, Seminars, and email your contact information and his assistant will contact you shortly.
 
Although “Successfully Navigating the Mortgage Maze,” gives readers a full understanding of their loan documents and how to understand all the numbers, many borrowers don’t have the time to read and compare their “Good Faith Estimate,” “Truth in Lending Statement,” “Note” and “Estimated HUD-1” to ensure they are getting the loan terms they were promised. By clicking on the Document Review service, for an incredibly low fee, we will review all your loan documents and within 48 hours tell you all the important rate and fee information, giving you the peace of mind that is so hard to come by during the loan process.

 Are You Facing Foreclosure?

If your Adjustable Rate Mortgage has recast or will soon move to a higher payment that you can not afford, there is no time to wait before trying to receive a loan modification from your lender.  The first place to seek help is through a HUD Approved Counseling Service.  These counselors will not ask for any money up-front.  You can visit the HUD website to find a counselor in your area at www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call HUD at (800) 569-4287.  You may be able to receive a modification without having to pay a third party for assistance, but it is always best to have a licensed attorney work with you to modify your loan.

You may also contact HOPE NOW at www.hopenow.com or call (888) 995-4673.  They will discuss your options and they may be able to help modify your current loan.  HOPE NOW has publicized their modification successes, but many in the consumer community believe their figures may not represent the true number of modificaitons.  This program is voluntary on the part of the lenders, so don't raise your expectations that they will be able to work some magic that will keep you in your home.

Hope for Homeowners was promoted as a streamlined assistance program.  It has not lived up to the politicians promises.  We have investigated this program by calling in and asking for help, it has been over 8 weeks and they still have not returned our call.  The FHA website tells you to call your lender which is an indication that the government could not handle all the calls.  We don't want to dismiss this as a possible answer because this program, if you qualify (and that's a big "IF"), you can write down the principal owed on your mortgage by refinancing with an FHA loan.  Your lender must also voluntarily agree to this modification, but you can go to the FHA website at:

http://portal.hud.gov/portal/page?_pageid=73,7601299&_dad=portal&_schema=PORTAL

PRESIDENT OBAMA'S "HOME AFFORDABLE MODIFICATION PROGRAM"

President Obama's new program still leaves participation optional for loan servicers.  You can visit a new federal website at www.financialstability.gov to find out if you meet the eligibility requirements.  This program will help some homeowners, but most will be left without assistance.  This new program may be a step in the right direction, but homeowners who were conned into loans that will cost them their home may find solutions in our nation's courts.

 Alan Jablonski is a partner in the firm of Jablonski, Geragos & Campbell.  They serve clients throughout the state of California on a variety of legal issues, including loan modification, rescission and other mortgage related legal matters.  If you would like to inquire about our services, please call Alan at 562.235.5709 or email him at jabojr@charter.net.

Any meaningful loan modification must be for the long-term.  Be aware that a short-term fix (1-2 years) is only delaying the inevitable and helping the banks, not the homeowner.  If you owe more on your home than what it is worth, you must consider trying to have the bank lower the principal owed on your home.  They are resisting this, but it is just another reason to have an attorney attempt to negotiate with your loan servicer.

Warning: There is no prohibition about who can help you modify your loan.  Many mortgage brokers, the same people who told you they were helping you buy your dream home, are now claiming they can help you modify your loan for a small fee.  DO NOT WORK WITH ANYONE BUT A LICENSED ATTORNEY IN YOUR STATE.  There are pitfalls that homeowners may face including charges of fraud that can cause problems in the future, including lawsuits.  Don't work with a company that tells you they have lawyers on staff, ask to speak wtih the attorney, get their name and state bar number.  Many loan servicers will include "waiver clauses" in your modification agreement that may take away any legal recourse you have in the future.

Warning: Many loan modification companies will use names that include the word "Federal" or your state's name in them to make you believe that they are connected with the government, only HUD-approved counselors that don't ask for any money for a consultation are in any way connected to the government.  If you are late on your payments, or have received a "Default Notice" you will receive many letters from official looking entities, don't fall for these tactics.  Talk with you lender directly, if you don't get help, contact an attorney, who may be able to help based on your state's laws.

Qualified Written Request (holding your loan servicer accountable)

A "Qualified Written Request" (QWR) is a communication to your loan servicer that requests a detailed accounting of your account history.  You must identify it as a QWR in your letter.  You may ask for information regarding the payment history, escrow accounting and how they determined your adjustable interest rate.  Loan servicers rountinely violate the contract (the note you signed) by making arbitrary decisions on when to adjust your interest rate based on the index that your loan is based on throughout the adjustable period.

The loan servicer has 20 business days (excluding holidays) to acknowledge receipt of your request..  This doesn't mean they have to answer your questions, they only have to tell you that they received your request.  They then have 60 business days to respond to your quesitions, and they are given this time period as a "safe harbor" to correct any errors in their accounting methods over their service period.

This letter has nothing to do with working out a modification of your loan.  What it does do, if your servicer fails to respond or answer your questions, an attorney can hold them accountable since a violation of the federal statute allows for mandatory attorney fees.  It also will allow an attorney to bring an action under your states Unfair and Deceptive Business Practices" statute.  All states have different laws and you should consult an attorney in your state to see if your statute applies.  I suggest going to the the National Association of Consumer Advocates, www.naca.org. 

The following in an example of a QWR;


<QWR Faxed>

Faxed This Date <LS1 Fax>

<LS1 Company>
<LS1 Address 1>
<LS1 City>, <LS1 State>  <LS1 Zip Code>

Re:    <Contact>
    <Address 1>
    <City>, <State>  <ZIP Code>

Loan#:    <LS1 Loan>

To Whom It May Concern:

    Please treat this letter as a “Qualified Written Request” under the Real Estate Settlement Procedures Act, 12 U.S.C. § 2605(e).  (Here, state the basis of your dispute).   Based on my dispute of the amount alleged to be due and owing contained in  <LS1 Company> statements of the past payment dates and the application of payments toward escrow, principal and interest.  Specifically, I am requesting a breakdown of the following information:

    1.  The monthly principal and interest payment, and monthly escrow payment from <LS1 Closing Date> to <QWR Faxed>.

    2.  The total amount, separately listed and identified, for any unpaid principal, interest, escrow charges, and other charges due and owing as of <QWR Faxed>.

    3.  The total amount paid by <Contact> on the mortgage account as of the date of <QWR Faxed>.

    4.  For each payment received from <LS1 Closing Date> to <QWR Faxed>, indicate the amount of the payment, the date received, the date posted to the account, how the payment was applied or credited (indicating  the portion, if any, applied or credited to principal, interest, escrow, suspense or other treatment), and the month to which the payment was applied.  If interest is calculated using a daily accrual accounting method, indicate for each payment the number of days that lapsed from the prior payment application date.

    5.  The amount, payment date, purpose, and recipient of all foreclosure expenses, late charges, NSF check charges, appraisal fees, property inspection/preservation fees, force placed insurance charges, legal fees, bankruptcy/proof of claim fees, recoverable corporate advances, and other expenses or costs that have been charged and/or assessed to <Contact>'s mortgage account from <LS1 Closing Date> to <QWR Faxed>.

    6.  The amount, payment date, purpose, and recipient of all escrow account items, including but not limited to taxes, water and sewer charges, and insurance premiums, charged and/or assessed to <Contact>'s mortgage account from <LS1 Closing Date> to <QWR Faxed>.  

    7.  A breakdown of the current escrow account payment showing how it was calculated and the reasons for any increase or decrease in the months prior to <QWR Faxed>.  Indicate the date when the last escrow account analysis was conducted on the mortgage account and provide this analysis to our office.

    8.  The balance in the escrow account as of <QWR Faxed>.

    9.  The balance in any suspense account as of <QWR Faxed> and the reason why such funds were deposited in said account.

    10.  The current interest rate on <Contact>'s mortgage account.

    11.  The dates on which the interest rate changed and date on which the margin date this change was based.

    12.  Please provide the name, address, telephone and fax number for the employee of <LS1 Company> that can discuss this matter if the dispute is unresolved.


    To the extent that <LS1 Company> has charged to the <Contact>'s mortgage account any late fees appraisal fees, broker price opinion fees, property inspection/preservation fees, legal fees,  recoverable corporate advances, and other fees or costs in connection with the notice of default and <LS1 Company> claim that the account is in default, <Contact> disputes such fees and costs and specifically requests that the account be corrected to delete such fees and costs.

    Finally, if you are not the current holder of the note and mortgage relating to <Contact>'s mortgage account, please provide the name and address of said holder and indicate your relationship to this entity.  Also, please indicate the date when you began servicing <Contact>'s mortgage account, and if you acquired the servicing rights in this mortgage account following a transfer of servicing from another servicer, state the name of the prior servicer and the effective date of the transfer of servicing to <LS1 Company>.

    Thank you for taking the time to acknowledge and answer this request as required by the Real Estate Settlement Procedures Act (§ 2605(e)).

Very Truly Yours,

<Your Name>

THIS IS NOT LEGAL ADVISE, EACH HOMEOWNER'S SITUATION IS DIFFERENT, YOU MAY HAVE RIGHTS THAT ARE SUBJECT TO TIME LIMITATIONS, YOU SHOULD CONTACT AN ATTORNEY IN YOUR STATE TO FIND OUT IF YOU HAVE RIGHTS THAT CAN SAVE YOUR HOME.

You can email me at alan@ajconsumerwatch.com or call me at (562) 343-5383 to find a reputable attorney to represent you with your modification.

 AJ Consumer Watch is not a law firm.  We do not give legal advice.  If you need legal advice on any issue contact an attorney in your area immediately to preserve your legal rights.  Alan Jabonski is a practcing attorney in the state of California and only represents clients who reside and have their home in California.
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