In order to increase profitability, many regional and most national home builders are now offering their own mortgage products. By offering "incentives," the unsuspecting new home owner gets lured into a trap where they actually think they are getting a good or fair deal on their mortgage. In reality they are not. These same builders frequently look the other way on non- english speaking, illegal workers being the core of the work force related to a substantial portion of residential contruction activities in many states.
(PRWEB) June 30, 2005 -- According to Thomas Martin, President of the
National Mortgage Complaint Center, "millions of new home purchasers have been
overcharged after they felt like they felt like they were forced into using the
mortgage product of a regional or national home builder". According to Martin,
"the reason most national and many regional home builders have become mortgage
lenders can be summed up in two words....More Profits". Martin explained, "by
offering "incentives" such as "bonus" construction features, or a portion of the
closing costs to be paid, the home builder lures the unsuspecting new homeowner
into a trap, where the home purchaser ends up with an interest rate/monthly
mortgage payment that could be much higher than the best possible interest
rate/mortgage payment available for their credit". "Or the potential new
homeowner might get stuck with junk mortgage fees that even the most crooked
mortgage lender would think twice about ever charging a consumer".
Martin says "what makes things worse, is that frequently these same builders have shell title or escrow firms that in no possible way can act as a disinterested third party with respect to closing, or the issuance of title insurance to the consumer". "By controlling the entire transaction there are little to no safety nets for the consumer, because the builder typically will say "take it or leave it," or "if you don't use our mortgage product the house costs $10,000 more".
What the new home owner does not understand is that by accepting the builders mortgage program in 90+% of the cases examined by The National Mortgage Complaint Center, the consumer never knew the builder was receiving an undisclosed kick-back called a "yield spread premium" for increasing the consumers interest rate/monthly mortgage payment. This is because the builder could/can hide behind a double standard (in federal banking laws & HUD's RESPA) that allows for banks or mortgage bankers to avoid disclosure of this kick back scheme also known as back loading or back ending the deal. As a result tens of millions of home owners are now paying a much higher monthly mortgage payment than anything close to what they deserved or could have received on the open market.
Martin said, "to make matters even worse from a consumer standpoint; much of the new home construction in the United States is the result of the toil of illegal aliens, who in many cases cannot understand or read English. In the states of California, Nevada, Arizona, Washington, Oregon, Utah, Texas, Georgia, North & South Carolina, Florida and Colorado it appears like the majority of residential sub contractors use these types of workers." Martin went onto say; "this instantly calls into question; if the worker cannot read or understand the English language, how does he/she understand a set of blue-prints or the instructions of a construction manager, whose only language is English"? Martin concludes, "this could translate into construction defects on a scale this nation has never seen before."
Martin is also very concerned about the treatment of these illegal or undocumented construction workers in relation to forced overtime without extra compensation and or forced 6 day a week work schedules. Martin would like to know, "just exactly how do these workers get paid without a valid social security number in a post 9-11 world?" According to Martin, "the reason the regional or national home builder allows its sub contractors to use this type of labor force is simple .......cheap labor equals more profits for almost everyone." "The exceptions to profits for almost everyone could be the consumer, who paid too much for their mortgage product from the builder, the consumer who purchased a poorly built home and or the undocumented worker" who according to Martin " was either paid under the table (with no tax) or was over-worked and underpaid compared to US citizens performing the same type of construction tasks."
If you are a purchaser of a new home you should contact the National Mortgage Complaint Center at http://nationalmortgagecomplaintcenter.com/ for an inexpensive examination of your mortgage documents. The National Mortgage Complaint Center would also be very interested in learning about construction defects, leaking roofs, mold, failed windows, foundation cracks or any other problem involved in any new home, sub division or condominium nationwide. If you have information related to national or regional homebuilders using or allowing undocumented or illegal aliens to perform construction duties at residential subdivisions or developments of any type you should contact the National Mortgage Complaint Center immediately. If you are an employee or former employee of a regional or national home builder or an industry insider with specific information about wrong doing on the part of national or regional homebuilders you should report your information to The National Mortgage Complaint Center or its sister organization The Corporate Whistleblower Center at http://Americaswatchdog.Com/ immediately.
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Source : http://www.prweb.com/releases/2005/6/prweb255756.htm