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People Are Smart - When it comes to questionable mortgage advertising

By
Mortgage and Lending with The Federal Savings Bank

Recently I visited the website of a mortgage competitor seen daily on TV to inquire about the below market rates they regularly advertise.  I used their online chat function to memorialize this conversation.

People are smart - enough to know when they are being told ½ a story

Note: online web chat on 05-21-07

Welcome to ditech's Live Chat. Please wait while we find an agent to assist you. Chat sessions may be monitored for quality control purposes. You have been connected to Kevin N----n.

Kevin N----n: Hello, welcome to ditech.com chat, for future reference my direct number is 800-700-____ hit the number 1 (to avoid the automated operator) then my extension ---- my e-mail address is kevin.n-ditech.com hope you are having a great day. What question(s) can I answer for you today ?

Greg: I saw the ad saying 30yr fixed rate at less than 5.8% APR for refinance but your website shows 6.3%. What's going on?

Kevin N----n: with 2 points you can get a lower rate if this is something you qualify for

Greg: What's the rate without the points?

Kevin N----n: if you qualify it would be the rate you see on our website

Note: 

Where is the information about charging 2 points listed on their homepage?  Can you find it? @ www.Ditech.com

Find ponts charged for publisned rates on a seperate page @ http://www.ditech.com/refinance/index.html 

Points are a legitimate means to permanently reduce mortgage rates however, they should always be disclosed in front for consumers to make educated decisions. Be wary of lenders that require applications fees as you may not know the entire story till after paying them.  Check them out on websites like Complaints.com Read my blog on points to decided whether they are right for you.

Additional research source:

See what this consumer advocate websites has to say at Ripoffreports.com 

For updates on GMAC & Ditech in the mortgage meldown click here and here

Toby Riley
American Home Mortgage - Ann Arbor, MI

Greg,

In my area it is Rock Financial or Quicken Loans.  Advertising a 400,000 loan for 800/month blah blah blah.  You are right people are smarter when it comes to deceptive mortgage advertising

Jun 27, 2007 04:51 AM
Angela Harrington
PCM Mortgage Solutions - Swartz Creek, MI
Loan Officer Mid- Michigan
argh Rock Financial.  I have that here too all day long on my radio.   Unfortunatly people get hooked if they didn't recieve business from it, they would stop the ads
Jun 27, 2007 10:18 AM
Matthew J Blum - (retired from the business)
Palm Beach Gardens, FL
Nice post... I had a friend go to quicken loans.   They told him a great rate when he asked for a GFE they said after they receive his $500CC for the application fee they would send him one. 
Jul 04, 2007 11:58 AM