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I concur with others who have had bad experiences with Wilmington Finance or their loan servicing division - Morequity. I would not recommend doing business with them. While I was aware of the 3-year prepayment penalty provision when I signed the loan from Wilmington Finance, I did not realize the inconvenience and magnitude of a penalty of 5% of the remaining balance. In our case, the balance is over $200K yielding a penalty of over $10,000! I have other loans with prepayment penalties that are not anywhere near as severe as that. We're pretty well stuck here and with them until the 3 years pass, mercifully now only 6 months away.
A few months ago, their sales division almost talked me into refinancing with them - a process wherein they dangle an offer to "waive" the prepayment penalty, though they turn right around and impose the same prepayment penalty on the new loan. Some waiver! They also seem to play a used-car sales-type negotiating game over the amount of points they can get you to pay in exchange for a lower rate. I'm so glad I backed out!
Which leads to the loan servicing by Morequity. I currently have four mortgages on three properties and Morequity is the hands-down worst of the four. In fact, I can't remember a worse mortgage servicing company since I started buying properties in 1985. They do not accept electronic funds transfers from banks so my bank has to send them a check via US Mail when I pay the bill using my bank's bill pay service. Morequity's website is not informative nor interactive - you cannot make the payment through their website. If you need to make a payment to beat the grace period deadline, the only option is via their phone service. It costs $12.00 and the payment must be made 2-3 business days before the grace period deadline.
The latest example of their customer service happened today when they refused to reverse a late fee they imposed after I was late due to fraudulent activity on my checking account. That activity had caused my bank to shut down the checking account and that action caused several payments to bounce and my bill pay authorization to Morequity to fail. I noticed the failure a day later and immediately re-sent the payment from my new checking account but it arrived 2 days late. My bank provided an explanatory letter for me to send to those companies whose payment bounced. Every other organization - credit card, car loan and insurance agency - refunded my late fees and insufficient funds fees when I sent them the letter - not Morequity, they told me it was my bank's fault and to go to them for a refund.
Again, I would not recommend doing business with them...
Wow... Complaining about not getting a late charge waived after admitting the payment was late... Surprised by a 5% prepay (isn't that disclosed on the note/rider)... Horrified at the thought of being able to buy down the interest rate (industry standard)... I highly doubt that this guy has been buying and selling properties since 1985 if this is "news" to him...
I have experienced the exact same problems and have similar issues with MorEquity concerning the 3 to 5 year penalty clause. For me, it was not even mentioned until we came to the settlement table. Of course, I could have said 'No', however plans were already in the works to have some things done around the house.
Now I can see why they say have a lawyer go over the papers before signing. However, how many of us have the money to pay a lawyer to do this?
I am very interested in hearing from borrowers with the same situations! Please feel free to e mail me at the enclosed!
Thank you...
What a [censored] bag... let me get you a box of tissues... theres a reason why you have to sign and notarize loan documents... if you don't agree with the terms then don't sign... 9 times out of 10 the people that whine about their loan terms are lucky to get a loan. The pre payment penalty off sets the banks risk and allows them to offer idiots like you a lower interest rate... they aren't going to give a great loan to a sub par borrower and then not make any money on it... Good loans without prepayment penalties are for people that pay their bills on time...
I was going to get a loan with Wilmington Finance, but I was lied to about what my interest rate and discount points would be. I found this out at the closing. I refused to sign, found another lender, and tried to get my appraisal reassigned from Wilimington Finance to my new lender. I paid $325 for the appraisal YET Wilmington Finance refuses to allow the appraiser to reassign it to my new lender. I would never had gotten involved with this company had I known this. The lender I worked with, Jermaine Washington, pressured me way beyond what other companies did, and he's the one who also lied to me.
I was also duped by Wilmington finance. I have no credit problems and was not told of any prepayment penalties until being asked to sign the last document at closing. Nor was I informed that the interest rates was lower as a result of the prepayment penalty. Finally, had i been aware that the terms of the prepayment penalty were in violation of Louisiana laws on this matter I would have refused to sign and incurred whatever financial penalties that entailed. Of course the position of Wilmington finance and Morequity is that they are federally chartered institutions and do not have to obey state laws. While these two companies may have the letter of the law on their side, they certainly have no ethical standards.
Mortgage lenders
In Feb 2005, I refinanced my home with Wilmington finance. The first inkling I had of a prepayment penalty associated with this loan was when presented the last document at closing. I also found out after the fact that the terms of the prepayment penalty were in violation of Louisiana laws on this subject. The position of Morequity and Wilmington finance is that they are federally chartered institutions and do not have to comply with state laws.
Unfortunately, once you have gone to closing on a mortgage, you cannot just stop without incurring a penalty. However, the banks can misrepresent (by not telling the lender) anything they wish according to these companies.
Since originating this loan, my family has been a victim of hurricane Katrina where we lost both our home and all possessions. During the rebuilding process, Morequity was a apin to deal with. In addition, both my wife and myself had suffered from symptoms of Post Traumatic Stress Syndrome and wish to move away from flood prone areas. I have been offered a job in Baton Rouge, LA, but will be forced to either commute 180 miles per day or incur a financial hardship if I sell our house due to the 5 % prepayment penalty.
I am in the process of filing a complaint of predatory lending with the Office of Comptroller of the Currency and would ask that anyone reading this complaint refuse to do business with either of these companies.
Thanks
Doug Broussard
I had a nightmarish story involving MorEquity?Wilmington Finance. I agree wholeheartedly that neither of these companies are ethical, maybe legal by the letter of the law but unethical. I trusted a friend of a friend who was a mortgage broker to find the BEST financing for me. I had excellent credit but I believe I was given the terms of someone with bad credit (see previous complaint).
I told Lisa my parameters for a monthly payment, the kind of loan I wanted etc. When the first (you will see it was not my last!) signing came at the title company, I noticed my payment was at least $200. more than I had wanted for a monthly payment. So I called Lisa and told her this wasn't acceptable. I told her again what I wanted and the second drawing there was an ARM loan! By this time I was thinking I should go somewhere else, but like another person with a complaint on here, the other people were none too happy and might pull out, I'd lose my $1,000 earnest money and of course the hassle of beginning all over when the last day of getting this taken care of was approaching. So after going over it again I ended up with the MorEquity which was bought out by Wilmington finance. I was appalled at the terms: I could not refinance or payoff the house for 3 years without a 10% prepayment penalty!, finance charges of thousands of dollars to pull the loan's interest charges down (which with a normal loan would have been zero charges for the same rate!). This was my third signing! I would lose the earnest money and house and felt there was no choice at this stage of the game. Then Wilmington Finance had the gall to charge me for redrawing the paperwork 3 times (at $300 a shot!). I called them and said they would split the difference! But I they had already charge me the first two draws!
It was my fault and I admit it. I had bought houses before and NEVER had a problem like this. Trust no one! Do some calling your self and get your own loan.
I have learned my lesson, albeit a hard one.
It seems there is a pattern here. The people getting the loans for these hucksters are not upfront in telling the people all these conditions that don't even exist with more traditional banking/credit institutions.
I wonder if some (I said some, NOT all) of these loan defaults were by honest people that were taken advantage of.
Bottom line: Buyer beware at all times. And don't even deal with these types of companies at all!
Maybe you shouldn't have ordered 3 redraws ###. Your loan officer should be explaining the terms of our loan to you.
Kim Lyons is disgruntled because she never paid for the appraisal but yet wanted Wilmington Finance to okay a name-change after Wilmington Finance shelled out the $325 for the appraiser cost. What Kim Lyons isn't telling you is that she never told Jermaine that she was wasting his time even after he was able to do everything that he initially disclosed to her via company letterhead offer letter, not to mention the fact that the appraised market value came in lower than she anticipated, thus raising her LTV. Kim Lyons never told Jermaine that she had another lender working thus wasting his time knowing that she was simply using Wilmington Finance's services for appraisal fee purposes. The Finance companies are always wrong and the poor-innocent borrowers don't want to take any responsibility or accountability. The borrowers receive a 3-day right-to -cancel period for a reason; it gives the borrower time to review all documents as well as have a real estate attorney, lawyer, or mortgage professional review the documents before allowing the loan funds to be sent out.
I worked with Jermaine Washington on refinancing my mortgage and I had a very pleasant experience with him. I was working with 3 lenders at the time and although Jermaine was not able to offer me the best package, he was definitely the best lender that I worked with. You need to do your homework before you try to refinance a loan and educate yourself about the process so that you know what questions to ask and how everything will effect you. Ladies, if you're a pushover than you'll be pushed over, not only by lenders, but by your husband, your family, your coworkers and your kids! Get professional help, it's well worth it for allowing you to better manage these important life decisions :)
So you obviously have no idea what you are talking about or how to shop for a mortgage? Couple quick things... What loan to value were you looking at? What was your debt to income ratio? What was your credit score? Did you get cash out? If all of these things were in line and you did a CONFORMING LOAN, you could have gone to a credit union and gotten a great loan WITH OUT A PRE-PAY... But that probably wasnt the case was it? Also, i bet the loan you signed didnt have a PMI did it? NO, IT DIDNT, BECAUSE THEY DONT CHARGE ONE! This is the most rediculous complaint i have heard in years... I deal directly with Wilmington and know that the people who have a clue as to what they are doing LOVE them because they offer more options than anyone on the market... Good luck next time with your refi, call a local broker so they can lie to you and put a terrible loan in front of you to make a killing off of it...
Most servicing companies have a provision that allow the customer service agent the latitude to wave one late fee every 6 to 12 months per customer account. It is not a written rule, but a voluntary option. Many times if the agent is not treated with respect or is talked down to, they may not feel the desire to exercise this latitude. I am not saying that you were rude to the agent, but what I would recommend is calling back and explaining the situation and ask if they have such a plan in place and if the agent would be willing to give you a one time waver. Customer service agents receive a ton of flack everyday. Just a little kindness goes along way.
Al.
I am in the Military, and we have bought 11 houses and flipped 7 of them. We knew all about mortgage tricks, tips, charges etc, and we were tricked by Wilmington in 2005 as well. we SPECIFICALLY demanded no Prepayment Penalty on our mortgage three times verbally, and confirmed with our broker that our conditions were passed on. We did not receive paperwork like we normally do, 24 hours prior to closing, so (while on the road with a moving van, going to our new duty station) we demanded paperwork, because it is our legal right to inspect the paperwork PRIOR to closing. Sure enough, 6 hours before closing, the PPP was attached to the paperwork. We demanded they take it off, and they said no. They were "so sorry for the misunderstanding", but couldn't do anything. This bank DELIBERATELY maneuvered us into this position, and I was furious. However, they had us by the short and curlys because calling off the closing would have literally cost us thousands of dollars. I think these people should be exposed, and I'll throw my hat in with anyone else who decides to go after them. This practice is predatory, regardless of the legality. Sure enough, the loan was sold to MorEquity, and they were "so sorry", but they were "just the ones who bought the loan". BS. They have causeed us more pain than any single financial institution we've EVER dealt with. And we've dealt with dozens.
Dave, did they give you a Truth In Lending statement? This document which should be generated in the early stages of the offer must, by law, reveal all fees and charges. If you have the TIL and the PPP was not on this document, then you may have some legal grounds to call them on the carpet. The main purpose of the TIL is to keep lenders honest, or as close to it as possible.
Wilmington Finance are crooks! I am helping a friend fight for justice on a bad loan given by Wilmington Finance in Livermore, California. In collusion withthe Remax office in El Sobrante, CA (now out of business), they used the most unethical and illegal tactics to close this loan. These activities included, 1) falsifying income 2) falsifying credit scores 3) placing a post-it on the Truth In Lending Disclosure Statement indicating the interest rate/fees were a "typo", but "sign today and we will fix it tomorrow... take the key so you can start painting your new home" 4) the Remax agent paying inspection fees, appraisals costs, and Escrow fees out of her own pocket 5) selling the loan to Citibank immediately after the closing and claiming "no longer able to help you". How does this pass Underwriting.
I too have had bad experiances with MorEquity. I had the exact same experiance when purchasing my last home. Mypreviuos home had already sold and there was a prepayment penelty clause in the contract. Since the home was sold I really had no choice but to pay and going back with MorEquity based on the promise of applying the penality fees to points that would reduce my interest. I did so, made another offer on a home and moved into a hotel waiting for the loan to close. What a surprise when I showed up at the signing table and the new loan had a 3 year prepayment penality. I could have said no...but we loved the new home and did not want to stay in a hotel while we started the whole process over again so we signed.
Last month my payment went up by $57.95 due to excrow fees for taxes and insurance increasing. I have the payment automatically scheduled through my bank. My job requires me to travel extensively so I dont alwaasy open my mail on time and to be honest I d not always look at the statement from MorEquity. My normal payment was made on time as it had been for the last 8 years. I got a call at work today from the collections department at MorEquity stating they have dinged my credit by reporting I missed a mortgage payment to the credit and I owe them $170 in late fees. I asked to speak to a supervisor. Unfortnately I got the same response with no willingness to work with me. The only thing I asked them to do was waive the late fee and remove the ding to my credit report. They refused.
What a shortsited company, they are willing to impose penalities over $57 that will end up costing them hundereds of thousands of dollars in interest. My prepayment is up in 6 months. I will refinance on principle just to make sure they no longer get my business.
Buyer Beware...this is one of the worst mortage comany out there.
Tom, you are an idiot. They gave you a credit on your new loan for the prepay penalty right? So now you expect them to just give you money? You, by your own admission, do not open your mail and look at your bill? You have no one to blame but your own irresponsible self dumbace. Take some personal responsiblity, or maybe when Obama becomes president, they can continue to bail ###s like you out.
as a former Wilmington Finance employee i can honestly say all but one of these complaints are just crazy.
1. Dont sign what you dont know
2. Dont sign with something you dont want.
3. We never had 10% PPP(pre-payment penalties)
4. In the past 3 yrs we did not have 5yr PPP
5. In the past 3 yrs we did not have a federal charter and therefore followed all state laws.
6. Many of the above complaints mention brokers. Your broker lied to you, not WFI.
7. You came to WFI b/c we said yes when your local bank said no. So your welcome for even giving you a loan.
8. People are dumb and more importantly ignorant.
9. Rates change everyday...it took you a week to send me your paperwork
10. Your house isnt worth what you think it is and that changes the loan (LTV)
11. You make less than what you said and that changes the loan (DTI)
12. Again, your welcome for getting you a loan
13. You missed at least 1 house payment b/c you live beyond your means
14. You live on CC(credit cards) b/c you live beyond your means
15. Again, your welcome for getting you a loan.
16. You should have taken 10 minutes and Googled "Shopping for a Mortgage"
17. We had an entire section for 1st Payment Default (when people dont make their very 1st payment)
18. Pay your bills, buy what you can afford and you wont have to deal with the WFI's of the world.
Were there ### that worked there? Absolutely, just like at every other sub-prime lender and broker. Company wide we serviced approx 800 - 999 million in volume (pre-market crash), so your bound to have some unhappy campers b/c quite honestly sometimes things just get screwed up with appraisals, intitial underwriting mistake, etc. I was extremely honest and have found on numerous occassions that many "Sub-Prime" borrowers choose the path that seems to be the least resistant only to find out it leads to a dark alley. Many borrowers think about the next 12 months when a mortgage should not be viewed as a short term thing.
I.E. -- Just today (8/18/2008)i called a prospect. He told me he already closed his loan (in 4 days? Right). He made 35k a yr and owed 375K on the house. After i got him to admit he didnt close his loan he then told me he was offered under 6% fixed (Right). He had an appraisal done, but couldnt even give me a ballpark for the value. I proceeded to warn him about the offer b/c i know there isnt a loan in the market today that this guy can qualify for under 6% fixed making 35k a yr on a 375k mortgage. Simply not out there. He wanted no parts of what i ahd top say b/c i didnt have good news.
Thats only one example from 90 phone calls i made, but the above complaints are only a few examples of the tens of housands of borrowers WFI helped!
nuff said...
I have to say Long Johnson don't be so NASTY. I have alway's (& still do) pay on time !
I refinanced in 2004 & had to sign a 5 yr prepayment penalty. As a REAL ESTATE BROKER it was never disclosed until the closing table that is BAD BUSINESS ETHIC'S not to mention ILLEGAL ! It is supposed to be disclosed with the paper work that list's POC or to be PAC within 24 hrs of closing. It wasn't . We didn't find out until the attorney showed up to do the closing & by then it was to late to bale out. We were so shocked & signed under duress because we needed the cash out to take care of a HUGE retaining wall (over 12ft high & 12ft long) that was cracked & waiting to fall on someone's head like your's (It cost us almost 12k to fix after many contractor's who wouldn't because of liabilty)
Anyway's point is it HAS to be disclosed prior to just like many other thing's in a real estate transaction & IT WASN'T. That's ILLEGAL & UNETHICAL ! They also MAKE money that is what the interest is for ! They are trying to get greedy which is why we are in this FORECLOSURE mess. Because of thing's not be said UPFRONT like if the interest rate's go to 13% can you still afford to pay. I had many buyer's I had to have this conversation with. Some argued & still went w/ the variable (w/ another agent) & are probably loosing their house today. Other's said WOW he never TOLD us that. Again DISCLOSURE ! It's LEGAL, ETHICAL & MORAL ! I don't know how these mortgage broker's SLEEP at night ! But what comes around GOES around that's why they have KARMA (everyone has it whether or not they admit it).
The only problem we had with morequity is when a really bad flood struck our home. We had about 7 feet of water in our basement and garage, and about $28, 000 in damage. Well, when the National Flood Insurance Program sent us the check it was made out to us and Morequity. When I told Morequity about this, they told me to sign the check and send it to them. The check was then to be placed in a restricted escrow account, and they would reimburse me after their inspectors looked at the repairs. Now I believe the company is located in Indiana, and I lieve about 3 states over. I asked them how I was going to come up with the money to do the repairs up front, and they said I would have to pay for all the work first and get reimbursed later. Luckily my neighbor has a heating and air conditioning business, so he gave me time to pay for a new heater/duct work and airc onditioner. Well the repairs got done, and then, no inspector. It was about two-years later when Morequity finally released my restricted escrow.
I agree, I have been emotional wreck since my husband lost his job 2 years ago, Morequity was (nice enough to modify our loan, however it was meant to fail, becouse we didnt have enough income coming in, they made us believe if we didnt agree with there terms we would loose our house, , With this said we cant keep up with the payments, always behind, the penalty just keeps adding on... The emotional rollercoaster they put upon us. We had 11 calls in 1 day... From the main office and the collectors... Right now I am a month behind 2040. and 400 penalty.. they will not negotiate with us they want all or none... I am in my wit ends with them.. I dread picking up the phone when I know they are on the other end.. Last Thursday I talked to Jennifer, I ask if I can make payments... She said NO and cannot help us, and threaten forcloser at the end of this month...She ask me if my husband is looking for a 2nd job (he works right now temp agent, income dramatically decreased). I told her I have asked, and she said what did he say. I told her he is his own person, I cannot make him (Not that hes tried, theres no jobs in california)Well then Mrs. Sanchez I cannot help you and hung up...Now its Tuesday 7-27-10. and so far she has called twice... That I know of... I dont know what to do... I am so emotionally drained, I cant do this anymore... I dont know what to do...
MOREQUITY SUCKS [censored]...THESE PEOPLE ARE FXXKING [censored].THEY ARE THE NAZIS OF NOTES, FXXKING ###!