Please review this information from U.S. Senator Jeff Merkley regarding deceptive lending practices:
"Steering payments were made to brokers who enticed unsuspecting homeowners into deceptive and expensive mortgages. These secret bonus payments, often called Yield Spread Premiums, turned home mortgages into a SCAM."

The Center for Responsible Lending says YSP "steals equity from struggling families."
1. Scott collected nearly $10,000 on two separate mortgages using YSP and junk fees. 2. This is an average of $5,000 per loan. 3. The median value of the properties was $135,000. 4. Clearly, this type of lending represents a major ripoff for consumers.

Please review Scott Veerkamp article dated 10-18-10 below:

http://jmb27.posterous.com/scott-veerkamp-deceptive-advertising

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Status: Unresolved

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Jim,

Jim Bruggenschmidt reply to Scott Veerkamp: Here are the facts...

NACA information regarding YSP:
http://jmb27.posterous.com/naca-predatory-lending-ysp

YSP and prepayment penalties:
http://jmb27.posterous.com/ysp-and-prepayment-penalties

Excessive interest rates and foreclosure:
http://jmb27.posterous.com/excessive-interest-rates

Articles regarding loan steering and predatory lending:
http://jmb27.posterous.com/articles-regarding-loan-steering-and-predator

Legal statement on yield spread premium:
http://jmb27.posterous.com/legal-information-yield-spread-premium

Scott Veerkamp: Predatory Broker
http://jmb27.posterous.com/scott-veerkamp-predatory-broker-0

2010-11-06 09:35:10

Jim,

Warning Letter To Scott Veerkamp From The Office Of The Indiana Attorney General...

Warning Letter.pdf (51 KB)

Scott Veerkamp is the President of the Franklin Township School Board and a member of the National Association of Realtors. Please ask Scott to post a copy of his WARNING letter from the office of the Indiana Attorney General. In addition, please encourage Scott to provide a written response to items 1-16 on this website.

Items 1-8 in group A: 1. I have documentation of a WARNING letter that was sent to Scott Veerkamp from the office of the Indiana Attorney General. 2. This letter was sent to Scott in November of 2008. 3. Here are the questions I have regarding this letter: A. Is a WARNING letter supposed to be an example of how Scott Veerkamp was "exonerated" by the office of the Indiana Attorney General? B. Can Scott post a copy of his WARNING letter for the public to review? 4. Please explain how a $1,440 Yield Spread Premium "protects and promotes the interest of your client." FYI: The federal government has banned the use of YSP. 5. Please explain how a $4,799 Yield Spread Premium "Serves Others First." This is in reference to your OTHER client in Wanamaker, IN. 6. Please provide documentation that shows how you "protected and promoted the interest of your client" when you attempted to sell a $120,000 property on a land contract with a "due on sale clause." 7. Please explain how you honored your fiduciary responsibility to your client when you made approximately $26,000 on a $120,000 property listed with REMAX Central in your own neighborhood. 8. Please provide documentation that shows how you "did your very best" when you refused to conduct an open house on a property located "one block down the street" from the house you were living in.

Items 9-16 in group B: 9. Apparently, $26,000 was not enough money to justify Scott driving "one block down the street" to conduct an open house on the $120,000 property. 10. David Worley used to work for Scott Veerkamp at REMAX Central. Scott had an appraisal conducted on the $120,000 property in response to my complaint. The appraisal was conducted by Bill Worley. Are David Worley and Bill Worley related? 11. Scott refers to me as licensed real estate agent. I would like for Scott to provide documentation that supports this statement. 12. Please explain why you removed my property from the multiple listing service after I filed my complaint with MIBOR. How was I supposed to sell this property if you refuse to conduct an open house? How was I supposed to sell this property if you remove it from the MLS? 13. The National Association of Mortgage Brokers stated it is not necessary to pay an application fee. Please explain how a $960 application fee keeps the interest of your client "first and foremost." 14. NAMB says processing fees are a violation of their code of ethics because "they're generally not related to any actual service performed by a broker." Please explain how a $500 processing fee "protects and promotes the interest of your client." 15. Scott ran an advertisement in Christian Phone Book with the following statement: "We will do our very best to help you get the lowest possible interest rates at the lowest possible price." A. Please provide documentation that explains how a $4,799 Yield Spread Premium represents "the lowest possible interest rate." B. Likewise, please explain how a $960 application fee represents "the lowest possible price." 16. ISBA Code of Ethics: Please provide documentation that shows how you "met the responsibilities to your community" when you steered people into high cost loans.

I look forward to a written response from Scott Veerkamp on items 1-16.

Jim Bruggenschmidt

NAR: "How To Avoid Predatory Lending"
http://www.realtor.org/home_buyers_and_sellers/how_to_avoid_predatory_lending

The Center For Responsible Lending:
http://www.responsiblelending.org/mortgage-lending/research-analysis/ib-ysp-110507-final.pdf

CRL and Equity Theft:
http://www.responsiblelending.org/mortgage-lending/tools-resources/ib011-YSP_Equity_Theft-0604.pdf

Jeff Merkley and Yield Spread Premium:
http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F

2011-01-05 18:12:47

Rebuttal: You must be logged in

ScottVeerkamp,

I have kept very quiet over the last 6 years about this one individual’s rant of lies toward me and my company. I have not responded to ANY of these false comments on websites until now. I am going to respond to his foolishness once and for all. Below is an attached summation of truth! This individuals lies have done nothing but strengthened my business. Praise be to the lord. In Matthew 12 : 36-37 Jesus says; “But I tell you that men will have to give account on the day of judgment for every careless word they have spoken. For by your words you will be acquitted, and by your words you will be condemned.”

To whom it may concern,

It has been brought to my attention that some or all of you have received an email or a package of information, about me, from an individual named Jim Bruggenschmidt. If you have or have not, you may. I decided to respond to this just in case you wanted to know the “readers digest” version of who this is and why he is making contact with you.

Mr. Bruggenschmidt purchased an investment property that I had shown to him in 2004 whereby he was going to fix up and resale. Soon after he decided that he was going to be unsuccessful in “flipping” this property, he then decided to file a complaint against me with the following organizations:
The Office of the Attorney General, Metropolitan Indianapolis Board of Realtors (MIBOR), The Grand Jury investigator for Mortgage fraud and Real Estate corruption for the state of Indiana, Remax of Indiana, Remax International, and Call for help channel six and many others.

He has stated that I had used various tactics to persuade him that he should buy this home. (Bait n’ switch, I will buy it if you don’t, the value of the home is inflated, appraisals were manipulated etc,.) Also, that I had caused a similar injustice to him with my mortgage company by over charging him etc. etc. He is basically on a “BUYER BEWARE” mission. Mr. Bruggenschmidt has held a Real Estate license since the 1980’s even though he never disclosed this to me or the seller of the property of which he purchased ( a violation of license law ). The point is that he was fully aware of the risks of buying and flipping property!
After reviewing his complaint and my rebuttal to these false allegations, these above mentioned boards and organizations have dismissed all of this. (It is nice when you have truth on your side and good documentation! )

What’s not so nice is that for the last several years he will surface from time to time by sending these same documents of lies to anyone that he thinks will listen to him in an attempt to defame me, my staff and or one of my companies.

Mr. Bruggenschmidt copies information directly from my web site and circles quotes where I mention my desire to serve my clients, that I am a Christian which are true statements that do reflect myself as well as the people that my companies employ.

Lastly, though I was completely exonerated, I still went well beyond the call of duty to make amends with Mr. Bruggenschmidt of which I will gladly discuss with anyone who would like to.

If you have any questions regarding this, please feel free to inquire as I will be happy to discuss. You may forward this to anyone that you would like.
Doing my very best,
Scott Veerkamp
Scott Veerkamp Real Estate
626 Main Street
Beech Grove In. 46107
(317) 780-7655
scott@scottveerkamp.com

2010-11-05 20:44:27

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