The article below shows why it is important to work with someone who understands financial planning in respect to mortgages. Consumers who were just interested in the lowest rate and worked with inexperienced loan officers were placed in loans that were not right for their situation. Now they are either losing their homes or losing thousands of dollars paying for short sightedness. Always make sure your loan officer has a background in Financing. Your home is one of your largest investments, it deserves professional attention!

Daily Real Estate News | July 13, 2007

Company Must Pay $325 Million to Home Owners
Some home owners in 49 states will begin receiving forms in the mail to claim their share of the $325 million settlement of a lawsuit in which state and federal officials last year alleged widespread fraud by Ameriquest Mortgage and its related companies.

The settlement resolves allegations against Ameriquest, Town and County Credit Corp., and AMC Mortgage Services Inc., formerly known as Bedford Home Loans. In particular, the companies are accused of failing to adequately disclose home loan terms as well as inflating appraisals, refinancing borrowers into inappropriate loans, and charging excessive loan origination fees and prepayment penalties from 1999 through 2005.

Attorneys general from the District of Columbia and every state — except Virginia, where Ameriquest did not conduct business — are parties to the settlement.

Forms mailed to consumers Thursday indicate the minimum payment that customers can expect to receive. The average restitution payment is $812.15, but the amount could be larger depending upon how many customers choose to participate in the settlement.

Consumers who accept the restitution payment will relinquish their right to file lawsuits against Ameriquest unless their home goes into foreclosure. If a consumer's home goes into foreclosure, the consumer may still file a lawsuit against Ameriquest even if the restitution payment was accepted.

Source: REALTOR® Magazine Online and The Seattle Times (07/12/07)

Too many times we have a friend that just came into the mortgage business and you want to help them out by letting them refinance your home. They are probably a great person, friendly and professional. But when you are dealing with the one of your largest investments, you need someone with financial education and experience; someone who can work with financial planning, someone who understands diversification, time duration, tax consequences and net present value of annuities. If you not comfortable with that person assisting you with your retirement portfolio, you shouldn't have them managing one of your biggest investments in that portfolio, your home and mortgage.
If you were going into heart surgery, wouldn't you want someone trained and educated in that field of expertise?