Dick Gaylord reviews and complaints

Please review my email and the response I received from Dick Gaylord (NAR.) As I said before, this is a mass scale "Bait and Switch" operation with REMAX and the National Association of Realtors.

Jim,
The process for ethics complaints works where there are complaints within the jurisdiction of the Association.

As you mentioned to me you have taken your complaint to numerous entities and none will take it on.

I am sorry I cannot help. This matter falls under the jurisdiction of the local association and I have no authority to get involved.

I wish you the best in your future real estate endeavors. My personal advise: don't let this consume you; get on with your business and life.

I am off to D.C. for NAR's midyear meetings.

Dick Gaylord

----- Original Message -----

From: "jim bruggenschmidt"

Sent: 05/10/2008 07:31 AM AST

To: [protected]@dickgaylord.org

Subject: NAR Ethics Complaint

Attn: Mr. Dick Gaylord / NAR President

I have contacted several different members of the Indiana Association

of Realtors (State Board.) In addition, I have contacted a member of

the Board of Directors with MIBOR. To date, I have not found anyone

willing to discuss my complaint with me. As you know, NAR members say

they are dedicated to "protecting and promoting the interest of the

client."

I have not found this to be the case in Indiana. Unfortunately, it

would appear that Scott Veerkamp continues to use "predatory lending"

tactics with his customers. As you know from reading my letter, there

is a possibility that Scott has caused financial harm to over 1, 000

clients in the last 5 years with the use of YSP.

I find this information to be disturbing...

Sincerely,

Jim Bruggenschmidt

Please note: REMAX agent Dick Gaylord was the President of the National Association of Realtors in 2008. I filed a complaint with Dick regarding Scott Veerkamp. My complaint included documentation of Loan Steering and Predatory Lending. To my knowledge, REMAX and NAR did nothing to prevent Scott Veerkamp from preying on the public.

Upon review of my documentation, you will see that Scott Veerkamp must have “skipped class” the day they held ethics training at the National Association of Realtors.

NAR and the Center For Responsible Lending produced a brochure entitled: “How to Avoid Predatory Lending.” Please take a moment to review this information from the NAR website…

http://www.realtor.org/home_buyers_and_sellers/how_to_avoid_predatory_lending

NAR says: “Here are some common problems with predatory loans.” (I have included examples from my personal experience with Scott Veerkamp.)

1. High interest rates and fees:
Example A: $960 application fee. Example B: $500 processing fee. As discussed earlier, the National Association of Mortgage Brokers says it is not necessary to pay “application” fees and “processing” fees. Therefore, the cost of these items should be ZERO as opposed to $1, 460.

2. Loan “Steering”:
Example A: $4, 799 Yield Spread Premium. Example B: $1, 440 Yield Spread Premium. The Center for Responsible Lending states the following with regard to Yield Spread Premium: YSP is “a bonus a lender pays to reward a mortgage broker for placing or “steering” a borrower into a higher-cost loan than the borrower qualifies for.” “Yield Spread Premiums are a destructive feature of the subprime market because they give brokers an incentive to act contrary to a borrowers best interest.” “The effect of YSP is to steal equity from struggling families.”

3. Broken promises, “Bait and Switch”:
Example A: “As qualified professionals, we’ll guide you through the entire home buying experience and assist you in being an educated buyer.” Example B: “We will do our very best to help you get the lowest interest rates possible at the lowest possible price.” Example C: “You can trust our REALTORS to always keep your interest first and foremost.” Example D: “Keeping the interest of my clients above all else.” Example E: “Serving Others First.” Example F: REALTORS are required to “protect and promote the interest of the client” at all times. Example G: REALTORS are required to follow the “Golden Rule” at all times. Example H: “The term REALTOR has come to connote competency, fairness, and high integrity.”

In addition, NAR says you should ask the following question: “Does the lender belong to a trade association with ethics requirements for members”? In my case, the answer is yes. Scott Veerkamp is a member of MIBOR and the National Association of Realtors.

The article also encourages people to do the following: “Share predatory lending “horror” stories with regulators, other consumers, REALTORS, counseling groups, housing professionals, and the media.” As everyone knows, I have taken their advice on this issue. I believe it is important for consumers to be aware of Predatory Lending tactics in their community.

In closing, please review the articles below from the Center for Responsible Lending. This will give you a better understanding of the “Bait and Switch” tactics some brokers use when misrepresenting their clients.