Scott Veerkamp Real Estate

Have you ever known anyone that deliberately searches for a HIGHER interest rate when they want to borrow money? This is what Scott Veerkamp was doing with Yield Spread Premium.

He was helping his clients search for a HIGHER interest rate so he could receive a KICKBACK on their loan. YSP cost the homeowner thousands of extra dollars over the life of the loan.

The Center for Responsible Lending says Yield Spread Premium "steals equity from struggling families".

Clearly, Scott Veerkamp was not "protecting and promoting the interest of the client" when he received kickbacks on predatory loans. Instead, he was protecting the interest of his own bank account.

Scott Veerkamp is the President of the Franklin Township School Board and a member of the National Association of Realtors. I have documentation of two loans initiated by Scott containing Yield Spread Premium...

Loan 1: Contains a $1,440 Yield Spread Premium on a $120,000 property.

Loan 2: Contains a $4,799 Yield Spread Premium on a $150,000 property.

(a) The following documentation is not an example of a loan initiated by Scott Veerkamp. I am merely providing this example to show the financial impact of YSP on the homeowner.

(b) On average, mortgage brokers receive 1% of the loan amount each time they raise the interest rate .25%. In other words, the lender pays the broker a "kickback" for increasing the interest rate on the loan.

(c) What is the difference in cost between a 6% rate and a 6.5% rate on a $200,000 loan over 30 years? Here is the answer according to bankrate mortgage calculator: -($23,414.40)

(d) On the mortgage above, the broker would receive a $4,000 kickback or (2% of the loan amount) for increasing the interest rate .5%. Therefore, a family would pay an extra -($23,414.40) over 30 years because they did not receive the interest rate they qualified for.

(e) I believe most families would prefer to invest the $23,414.40 in EDUCATION. Clearly, this makes more sense than "wasting it" with a predatory loan.

(f) Therefore, I am asking Scott Veerkamp to answer the following questions: 1. How does Predatory Lending "protect and promote the interest of the client"? 2. How does Yield Spread Premium "keep the interest of the client above all else"?

*You can find YSP on the settlement in your mortgage documents. It will be listed as POC or "paid outside of closing".

Please take time to review the following information...I was misrepresented by Scott Veerkamp on my mortgage transaction. Scott had the property set up with a 12 month occupancy agreement when he listed the property.When you look at Scott's response, he confirms the property is set up for a "flip." A Realtor can not flip a property with a 12 month occupancy agreement.This is the reason Scott refused to show the property.

In addition, this is the reason he refused to conduct an open house.If Scott sold the property quickly, he would have to answer questions from the lender about violating the occupancy agreement. This is the reason he tried to sell the property on contract. As I said before, there is no mortgage on a land contract. If Scott sold the property on contract, only 3 people would know: 1.

Myself 2. Scott 3. Chris MooreGMAC would not know the property was sold on contract unless I contacted them to get permission. When you review the letter, it is clear GMAC is saying the property can not be sold on contract.I know this sounds strange.

However, the following statement is true: Scott listed a property HE COULD NOT SELL without violating the occupancy agreement.Please remember: Scott received a WARNING letter from the office of the Indiana Attorney General. This government agency never blamed me for any issues relating to the transaction.Here are 5 key points to review about the transaction...1. It does not matter if I lived in the property.2. It does not matter if the property was vacant.3.

Either way, Scott COULD NOT SELL the property without violating the terms of the occupancy agreement.4. This is the reason he refused to show the property.5. In the end, I met the financial requirements of the occupancy agreement. I made all the payments required over the 12 month period.

In addition, I made all of my payments on time. For this reason, I did not have anyone from a government agency express concern about the occupancy agreement on my behalf. As many people do, I signed a stack of documents "one inch thick" at closing. I do not remember much about the details of the documents.Please note: Scott had his mortgage license revoked by the office of the Indiana Secretary of State's Security Division.

I do not know the reason his license was revoked. However, here is my documentation...Mortgage license revoked:http://narrealtorbaitandswitchblog.blogspo is the reason Scott could not show (or sell) the property...http://narrealtorbaitandswitchblog.blog

"Going In and Going Out" is a term I use to describe the mortgage transaction I had with Scott Veerkamp. This term is synonymous with "Bait and Switch." Please take a moment to review the following explanation... The "Going In" phase typically represents a statement from Scott's website or his affiliation with NAR. As I mentioned earlier, this statement is often used as "BAIT."

The "Going Out" phase shows the financial result for his client. As you might expect, this is where the "SWITCH" takes place. Please review the following "Going In and Going Out" examples... ( * indicates junk fee / "Pluto fee" )

Group A: 1. "Serving Others First" going in---and a $500 "processing fee" going out.* 2. "Keeping the interest of my clients above all else" going in---and a $960 "application fee" going out.* 3. "Dedicated to providing the finest service possible" going in---and a $150 "underwriting fee" from the lender going out.* 4. Scott describes himself as a "Super Servant" going in---and Scott "blindsides" his client with a $4,799 "Yield Spread Premium" going out. 5. "Protecting and promoting the interest of his client" going in---and a $409 "administration fee" from the lender going out.* 6. Following the "Golden Rule" going in--and $1,920 in "discount points" going out.* 7. "Someone You Can Trust" (public awareness campaign) going in---and thirteen examples of "deception" and "financial harm" going out.

Group B: 8. "Be truthful in all communications with the public" going in---and Scott collects $6,239 in "secret bonus payments" going out. 9. "Fairness and high integrity" going in---and a $35 "electronic filing fee" going out.* 10. "We go the extra mile to help you achieve your goals" going in---and a $425 "administration fee" from the lender going out.* 11. "We'll make your home buying or selling experience a pleasant one" going in---and a $250 "document preparation" fee going out.* 12. "You can trust our REALTORS to always put your interest first and foremost" going in---and a $1,440 "Yield Spread Premium" going out. 13. "You need a professional team that understands the industry and is positioned to stay ahead of the game" going in---and a $50 "courier fee" going out.* 14. "We will do our very best to help you get the lowest interest rates possible at the lowest possible price" going in---and a whopping $10,938 in "Pluto fees" and kickbacks going out.

Hopefully, this information will give you a better understanding of Scott's "switching" technique. He consistently does the opposite of what he says he is going to do. As you can see, he often receives a large financial sum for "steering" people into high cost loans. Unfortunately, these large financial gains are coming at the expense of the public.

In summary: The examples above total $10,938 in junk fees and kickbacks, or $5,469 per loan. Scott collected $6,239 in Yield Spread Premium from the lender. As discussed earlier, Senator Merkley says Yield Spread Premium has turned the home mortgage industry into a SCAM. Nonetheless, Scott describes this scenario as: "Keeping the interest of his clients above all else."

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

Please review this summary of events regarding Scott Veerkamp (NAR)...

1. Scott engages in Predatory Lending with Yield Spread Premium and excessive fees. This is documented on the settlement statements in the link below. Click on Fullscreen in the upper left hand corner of each document. (You will need to scroll to see these documents).

http://jmb27.posterous.com/mortgage-documents-1-and-2

2. Scott refuses to show the property. He refuses to drive (one block) to conduct an open house. (This is documented in the "record of property shown" receipts from MIBOR).

http://jmb27.posterous.com/scott-veerkamp-refuses-to-conduct-an-open-hou

3. After 8 months of refusing to show the property, Scott attempts to sell the property on a land contract with a "due on sale clause." (This is documented with a letter from Chris Moore and a Letter from GMAC Mortgage).

http://jmb27.posterous.com/scott-veerkamp-the-land-contract-scam

4. Scott removes my property from the MLS after I file a complaint with MIBOR. (Please review the document from MIBOR in the link below).

http://jmb27.posterous.com/scott-veerkamp-removes-my-property-from-the-m-10511

5. Scott flips his own listing for a $26,000 profit. This is documented with the purchase agreement and selling price of the property. (You will need to scroll to see these documents).

http://jmb27.posterous.com/scott-veerkamp-flips-his-own-listing

6. Scott refers to himself as a Christian Super Servant. He believes he is dedicated to "keeping the interest of his clients above all else." (This is documented on Scott Veerkamp's website in the link below).

http://jmb27.posterous.com/scott-veerkamp-refers-to-himself-as-a-christi

7. Scott receives a warning letter from the office of the Indiana Attorney General. (This is documented with a letter I received from their office).

Warning Letter.pdf (51 KB)

8. Here is a copy of the response from Scott Veerkamp. (This is documented on a blog from ripoff report).

http://jmb27.posterous.com/here-is-a-copy-of-the-response-from-scott-vee

9. The MIBOR promise...

http://jmb27.posterous.com/the-mibor-promise

10. Comparative Market Analysis

I had to go to an independent real estate agent to get Comparative Market Analysis on the 8202 Eaton Court property. CMA shows an average selling price of $82 per square foot in this neighborhood. The square footage on the 8202 property is 1,420. Scott attempted to sell the property to Chris Moore for $145,000.

Please review Standard of Practice 1-3 in the Code of Ethics before analyzing the following information...

Comparative Market Analysis.pdf

Land Contract Information.pdf