The company I applied with for a mortgage loan is an LLC with one member. This is on file with the secretary of state, however the company is not registered there as a loan broker. NC statutes require that loan brokers register with the SOS and also provide advertising to the SOS for approval before it is placed in any form including any online advertisement. Chapter 66 (article 20) does not allow a loan broker to collect upfront monies unless they are for reasonable and necessary fees payable to third parties for appraisal, property survey, title exam and credit reports. The company I applied for a loan required that I pay them $2000 upfront in order for them to issue a preapproval letter to me. I never closed on my home because they switched their terms on me. I applied for 100% of the purchase price and 100% of the rehab cost. 2 weeks after applying, and after getting under contract to buy a home and put down $5000 earnest money deposit, they offered me only 80% of the purchase price There is no lender in the country that loans 100% of the purchase price with 100% of the rehab cost. This company has been scamming people all over the country just like me off this fraudulent ad for 100% purchase price 100% rehab cost and they they taken in tens of thousands of dollars in upfront monies and people have lost their earnest money deposits also because they always switch their terms. There is a class action lawsuit on file right now about this company although I opted out of the class A because I thought a small claims action would be more expedient.
At my small claims hearing, the judge rendered his judgement before I had taken evidence up to him.
I cannot believe what happened to me. It was a long trip that required 2 planes to get to Raleigh. It was just me, the attorney for the defendant and the judge in the room. So the judge says to me that I didn't provide enough evidence...he tells me I can appeal in 10 days and then says I can pick up the papers on his desk. The attorney had placed the 2 loan approvals which the company had brokered my loan to right on the table in front of me. I didn't take these up to the judge though. The company has never made one single loan to an applicant for a fix and flip type real estate transaction using their own funds. They have a pool of funds for other loans, but these fix and flip type of loans are ALWAYS brokered out to lenders that specialize in making them. The two loan approvals that the attorney placed in front of me are from 2 outside lenders that they brokered my loan to. Thus this is HARD EVIDENCE that they act in the capacity of BROKERS... And they are NOT exempt from the loan broker law Article 20 of Chapter 66 and each of its provisions.
My question here is do the 2 loan approvals issued by the 2 companies which received my loan application along with the attorney for the defendants sworn testimony that they have never made fix and flip loans using their own funds constitute enough evidence to prove they are subject to the loan broker act ? I should think it does but what do you legal experts say?
These 2 loan approvals are not in the name of the company that I am suing. They clearly are not and they clearly are brokers. I appealed the judges decision and now I have to go back to the district court to see another judge. Chapter 66. I paid them $2000 upfront to get a preapproval letter that I could show to a seller to get under contract on a house.
At my small claims hearing, the judge rendered his judgement before I had taken evidence up to him.
I cannot believe what happened to me. It was a long trip that required 2 planes to get to Raleigh. It was just me, the attorney for the defendant and the judge in the room. So the judge says to me that I didn't provide enough evidence...he tells me I can appeal in 10 days and then says I can pick up the papers on his desk. The attorney had placed the 2 loan approvals which the company had brokered my loan to right on the table in front of me. I didn't take these up to the judge though. The company has never made one single loan to an applicant for a fix and flip type real estate transaction using their own funds. They have a pool of funds for other loans, but these fix and flip type of loans are ALWAYS brokered out to lenders that specialize in making them. The two loan approvals that the attorney placed in front of me are from 2 outside lenders that they brokered my loan to. Thus this is HARD EVIDENCE that they act in the capacity of BROKERS... And they are NOT exempt from the loan broker law Article 20 of Chapter 66 and each of its provisions.
My question here is do the 2 loan approvals issued by the 2 companies which received my loan application along with the attorney for the defendants sworn testimony that they have never made fix and flip loans using their own funds constitute enough evidence to prove they are subject to the loan broker act ? I should think it does but what do you legal experts say?
These 2 loan approvals are not in the name of the company that I am suing. They clearly are not and they clearly are brokers. I appealed the judges decision and now I have to go back to the district court to see another judge. Chapter 66. I paid them $2000 upfront to get a preapproval letter that I could show to a seller to get under contract on a house.
Last edited:
