This is Merit: Our fees are zero; final HUD I says...
Yes, this is Merit.
DFI update: Scott Greenlaw, former owner of Merit Financial, the local company with the distinction of being the first named on the ML-Implode list of defunct lenders, has finally been charged by state regulators.
The statement of charges is 11 pages and makes a good read on how not to interact with your state regulator. Among other things, on page 5 you'll see where a good faith estimate was provided to a borrower showing a 2% loan origination fee and a 2% discount fee. Both of these line items are fees that the borrower would pay to the LENDER (not the broker.) Mortgage broker fees are disclosed on a separate line (Line 808.)
At closing the broker demanded all four points and collected a $10,370 check, a viollation of state law. DFI is ordering that these fees be refunded to the borrower.
Link opens PDF:
http://www.dfi.wa.gov/CS%20Orders/C-06-195-07-SC01.pdf
The entire DFI naughty list:
http://www.dfi.wa.gov/cs/adminactions_2007.htm
Looks like the DFI investigation will continue on. So what's holding up the regulators? Well Scott put all the company documents into a storage locker and has not paid the bill, so the storage company won't let him access the room, which is his excuse for not responding to the state. I wonder what else is in that storage locker?
DFI update: Scott Greenlaw, former owner of Merit Financial, the local company with the distinction of being the first named on the ML-Implode list of defunct lenders, has finally been charged by state regulators.
The statement of charges is 11 pages and makes a good read on how not to interact with your state regulator. Among other things, on page 5 you'll see where a good faith estimate was provided to a borrower showing a 2% loan origination fee and a 2% discount fee. Both of these line items are fees that the borrower would pay to the LENDER (not the broker.) Mortgage broker fees are disclosed on a separate line (Line 808.)
At closing the broker demanded all four points and collected a $10,370 check, a viollation of state law. DFI is ordering that these fees be refunded to the borrower.
Link opens PDF:
http://www.dfi.wa.gov/CS%20Orders/C-06-195-07-SC01.pdf
The entire DFI naughty list:
http://www.dfi.wa.gov/cs/adminactions_2007.htm
Looks like the DFI investigation will continue on. So what's holding up the regulators? Well Scott put all the company documents into a storage locker and has not paid the bill, so the storage company won't let him access the room, which is his excuse for not responding to the state. I wonder what else is in that storage locker?
Comments
Makes you wonder how many of the former Merit LO's have formed other companies and still originate "business as usual"?
4 points? I've seen worse.
I guess jail is a consolation prize.
So the lawyers get it all.