Yesterday’s prize piece of junk mail has to be one of the worst mortgage mailers I’ve seen in a while. It states:
Dear M/M Porter,
Congratulations! We have great news regarding your account originally funded with Mortgage Master Svc. Corp. …
Note: Who ever shows as the lender on your Deed of Trust is public record. It’s not magic that someone has this information. This information is available for purchase from the credit bureaus, title companies or many other data resources.
We are happy to inform you that you have been preapproved for a new mortgage loan that can substantially lower your monthly payment…we can "freeze" your current interest rate and lock you into on of our "fixed" product lines.
We do not qualify for the Bush/Paulson "freeze" plan. Nice play on trendy mortgage words.
The Federal Government has issued new incentives on 30 Year Fixed Rate Mortgage Loans through FHA & Fannie Mae! These incentives have considerably lowered fixed rates and made refinancing attractive again!
We’re still waiting on Congress to work out mortgage plans. Fannie & Freddie now have risk based (credit score sensitive) pricing for a-paper. Rates are attractive right now due to investors seeking safety in mortgage backed securities (bonds) instead of stocks.
This promotion will expire January 28th 2008! However, as an added incentive for you to call us right away, there is an immediate opportunity for you to "skip your next two mortgage payments"!!
Ya gotta love the two exclamation points. The letter goes on how we must call right away and is signed "Have a blessed day!"
Under the signature, it states rates low as blah blah blah, which is an obvious option ARM and does not include any APR. This is pure trash. In the fine print below that the letter does state the letter "is not a direct solicitation endorsed or sponsored by Mortgage Master Srvc Corp". Duh!
What now? No where on this letter can I see who the lender is or if they are licensed do provide mortgages in Washington state. Letters that are a solicitation for mortgage loans that are misleading such as this should be forwarded to DFI to investigate.
Here’s the address:
Enforcement Unit, Division of Consumer Service
DFI, P.O. Box 41200, Olympia, WA 98504.
Please don’t select your Mortgage Professional by a mailer such as this one or a phone call from a total stranger. Get referrals from your friends, family, co-workers or professionals you trust and respect. If you had a good experience with your previous Mortgage Professional, contact him or her if they are still in the biz. If it looks too good to be true, it probably is!
I have a folder of “Marketing Materials” that I receive from Realtors, Lenders, and Financial Advisor’s. I enjoy seeing just how creative(slimy) they can be. Good advice to get referrals. I always say it is best to use someone who has something to lose, whether it is a reputation or a relationship, they are more likely to work harder for you.
Jonathan, I agree with you 100%!
Rhonda;
There is so much wrong with that letter it ain’t funny.
Skip two mortgage payments? Wrap the current & the one due on the first in your loan amount you mean…
However, those letters work which is why we all keep getting them. Consumers are pretty gullible. It is unfortunate though because it makes us all look bad.
I recently met with a client who purchased 2 homes the same week from a lender/realtor on he pretense that his would make him a large profit. He had responded to a similiar letter offering exceptional options for achieveing financial independence. Now both properties are in foreclosure. He needed a co-signer to just qualify for one. The only one who made a large profit is the lender who was also the licensed realtor.