This Sucks... Who sent this junk?

Mortgage and Lending with NMLS 291249

I think this is sleezy advertising.Misleading Post Card  You too?  Lets do something about it.

I received this junk mail postcard in the mail.

My first question is, who sent it?

The company names used are Lincoln Capital and and Lincoln Capital Group with a California DRE license number of 01414409.

CA DRE lists a Lincoln Capital whose DBA has been canceled and Lincoln Capital Group in San Jose but neither match with the license number.  The license number belongs to a broker in Bakersfield with no DRE listed DBAs.

When I called the phone was answered "Loan Department".  Well folks, that really cleared things up.

What About the 4.5% Rate? When I asked for information about the rate and fees I was told that someone "a mortgage professional" would come to my house and explain.  Of course I would be thrilled to invite someone to my home belonging to a company ashamed to reveal it's real name.

So if they won't give me rate information I'll have to draw my own conclusions... sorry, the very tiny black print shown on this page is unreadable and on the actual card almost. But I was able to barely make out the disclosure the advertised rate could change at any time.  Anyone willing to bet it won't... 

Pay $13,875 for a 4.50% Rate?

The payments for the various loan amounts on the top postcard are based on 4.50%, Interest Only loans. There is also a 07-01-09 date next to the rate disclosure in the tiny black print so, I am assuming "Loan Department" is claiming the advertised rate was available on that date.  Checking back with one of my best priced, very picky wholesale lenders I found their lowest Interest Only rate was 5.125% and it cost 2.50 points more than their amortized rate.  When 2.50 points are added to the points for their 4.50% amortized rate the result is 4.625 points. So maybe the rate was actually available on 07-01 if "Loan Department" or, whatever it's real name is and the "mortgage professional" coming to my home are both working for FREE.  Wanna bet?

The APR in small print is shown as 4.99%.  "Loan Department" did not disclose the loan amount used to compute the APR so again I must improvise and just make it $250,000.  Using $250,000 the 4.99% APR requires total points and fees to be $13,875.

So how are we doing so Far...  hmmmmmm

  1. It is questionable to me the advertised rate was ever available. 
  2. The California Department of Real Estate requires the advertised company name and license number match exactly.  They also require the company to be a legal entity.  Two DRE strikes?  This guy is either gutsy or really stupid.
  3. I believe RESPA requires the advertised rate and APR be shown in the same print size.  I also believe the loan amount basis for the APR calculation must also be disclosed. 

So lets look a little further

Skip 2 Payments?  Well, gentle readers, that is just a damn lie.  Payments are NEVER skipped in a refinance. They can be included in the loan but they are never skipped.

Prominently on the front side of Postcard: Our Current Clients Receive...
No Closing Costs... No Points.. No Title Fees... No Appraisal Fees... No Credit Report Fees... Ever again

This is ABSOLUTELY a bogus play on words.  At first glance most consumers would think there are no fees but upon closer reading it appears that "Loan Department's" existing (if any) customers won't pay these fees but NEW customers probably will be required to pay.  

It really could not be any other way because: if the above fees are included in the loan amount then they DO exist.  Or, if Loan Department claims to pay them; based on their pricing structure there is not enough profit for Loan Department pay them.

And the conclusion is:

It appears to me Loan Department is just another lowlife predator un-intimidated by ethics, proper disclosure, RESPA or even the DRE.  If "whatever it's name is" was in business three or four years ago they were, most assuredly eagerly sticking families into Option Arms and Sub Prime loans.

Active Rain, Lets get mad and take action

In any real estate market there are always predators eagar to take advantage of what for many consumers can be a confusing process.  One group leaves the business or goes to jail and another sinks to fill the void.

As this is written there are almost 158,000 professionals on AR and WE can make a difference.  We don't need to be policed by self serving politicians, we can and should to it ourselves.  Here on AR we have a forum to expose this type of advertising wherever and whenever it appears.  If this is beyond your comfort level... send the ads to me.

This kind of advertising steals our business and our reputation.  This industry is our house, where we live, lets keep it clean. 

Comments (116)

Monica Bourgeau
Portland, OR
Business Coaching

I'm surprised that they can still get away with this kind of stuff, not a good thing at all. Are you able to get anywhere by notifying your state's attorney general?

Sep 25, 2009 08:24 PM
Bill Ladewig - Escondido, CA
Experience Is Your Advantage

Kevin & Monica, while, in my belief, this advertisement, violates common decency and buisness ethics, California DRE and RESPA regulations, but I don't think it violates California law.  This may seem contradictory but the law is for attorneys to sort out.

Do not rely on others (our protectors in Gov. hehe)  If you are outraged by this advertisement, take action.  Expose them on your own sites... send them to me and I will certainly expose them on mine.

Sep 25, 2009 08:49 PM
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Bill: thank you for pointing this out and offering to be the place we can send such information to.

Sep 25, 2009 10:05 PM
Lenn Harley
Lenn Harley,, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

What about Reg. Z??? 

They are advertising a mortgage payment, but I don't see the APR in the graph.

This is excellent and a virtual tutorial for agents and consumers.


Sep 25, 2009 10:12 PM
Dave Humphrey, Broker
RE/MAX Marketplace - Celebration, FL
Real Estate Advice You Can TRUST!

Bill, most people would not take the time you did to check this out. Truth be told, someone in a regulatory position should be doing this work, and hammering companies like this.

Sep 25, 2009 10:53 PM
Mara Hawks
First Realty Auburn - Auburn, AL
Inactive-2012 REALTOR - Homes for Sale Auburn Real Estate, AL

BRAVO! Bill... Your clarity, seeing through the smokescreens, is the xray vision needed in this murky mortgage market!  And yes, an business that is not transparent should be highly suspect!

Sep 25, 2009 10:55 PM
Bill Ladewig - Escondido, CA
Experience Is Your Advantage

Janice, thank you and please send me your lending junk mail I will treat it with the reverence and respect it deserves.

Lenn, the APR is in small print but they did not also provide the loan amount it is based upon so it can be checked.

Dave, regulators are underpaid and understaffed.  If we really want to end this type of advertising we must do it ourselves.

Mara, one commentator "Sleuth" found the following:

A bit more sleuthing shows that CA DRE #01414409 belongs to Hilary Kunz. Yes, the DRE shows this person to be in Bakersfield, but do a Google search for the name and you find Hilary Kunz, senior mortgage broker with Liberty Capital Group in San Jose.

Hilary Kunz
Lincoln Capital Group
Senior Mortgage Broker
6050 Santo Road, Suite 200
San Diego, CA
United States 92124
Voice: 888-565-2216


And the real kicker? The company byline is: "Financial Transparency, honest solutions"






Sep 26, 2009 03:23 AM
Lori Lincoln And Associates
Top Agent Serving Dighton Taunton, Rehoboth and more! - Taunton, MA
Top Agent Taunton,Dighton Rehoboth &more


Thank you for posting this. So many buyers are mis-lead by rate advertisement, they don't understand that it just isn't about the rate.. it's the whole package.

Sep 30, 2009 01:55 PM
Davil Brain

Hi Bill, It's true that some home buyers get swayed by the outrageous offers of some advertisements because they offer the lowest interest rate, more so now that mortgage fees become exorbitant.   I always find these kinds of advertisements on newspapers. They seem to promise that home buyers like me, would not be paying anything anymore which is very suspicious. no business would venture in a zero profit deal.

Thanks for educating the readers like me about pseudo lending company operation.  In instances where a home buyer is having a hard retort which options to go for, it would be wiser to consult mortgage professionals. I found this <a href="">mortgage broker in Alberta</a>  site online and I think it would be great to try them. They offer free consultation so that customers would be aware of the real mortgage packages and government recognized lending institutions.

May 18, 2010 03:39 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

This is a hot topic for me right now.  It's incredible and appalling how some agents that are clueless when it comes to Short Sales boast of hundreds of transactions and high closing ratios - neither metric being supported by the MLS.

Aug 22, 2010 12:36 PM
Matt Kombrink
RE/MAX All Pro - Saint Charles, IL
Your #1 Source For Real Estate

Bill, thanks for the great post.  It made me laugh, out of sadness I think.  This is the kind of garbage people get in the mail and then we wonder why lenders & Realtors get a bad rap.

Aug 22, 2013 05:08 AM
Bill Ladewig - Escondido, CA
Experience Is Your Advantage

Hi Matt, thanks for the comment. I turned that ad into the DRE and make a habit of reporting anything that seems fraudulant.  These guys will always be with us in one form or another and we have to keep the light of day shining on them.

Aug 22, 2013 05:41 AM
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS
Bill - I would be reporting this to whoever has the capacity to fine them, or do whatever they can.
Aug 26, 2013 10:23 PM
Bill Ladewig - Escondido, CA
Experience Is Your Advantage

Hi Carol, they were reported to the DRE and FTC.  I don't know the result but I have not recieved any further post cards.  

Aug 26, 2013 10:32 PM
Dena Smith
DSmith Realtors - Irving, TX

Clearly a scam. What do you propose as group be done about it?

Aug 26, 2013 10:34 PM
Bill Ladewig - Escondido, CA
Experience Is Your Advantage

Hi Dena, whenever anyone comes across what appears to be false advertising or fraud then it should be reported.  Write blogs but be careful to say "in my opinion" otherwise you could be sued.


Aug 26, 2013 10:43 PM


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