"Going In and Going Out" is a term I use to describe the mortgage transaction I had with Scott Veerkamp. This term is synonymous with "Bait and Switch." Please take a moment to review the following explanation...
The "Going In" phase typically represents a statement from Scott's website or his affiliation with NAR. As I mentioned earlier, this statement is often used as "BAIT."

The "Going Out" phase shows the financial result for his client. As you might expect, this is where the "SWITCH" takes place. Please review the following "Going In and Going Out" examples... ( * indicates junk fee / "Pluto fee" )

Group A: 1. "Serving Others First" going in---and a $500 "processing fee" going out.* 2. "Keeping the interest of my clients above all else" going in---and a $960 "application fee" going out.* 3. "Dedicated to providing the finest service possible" going in---and a $150 "underwriting fee" from the lender going out.* 4. Scott describes himself as a "Super Servant" going in---and Scott "blindsides" his client with a $4,799 "Yield Spread Premium" going out. 5. "Protecting and promoting the interest of his client" going in---and a $409 "administration fee" from the lender going out.* 6. Following the "Golden Rule" going in--and $1,920 in "discount points" going out.* 7. "Someone You Can Trust" (public awareness campaign) going in---and thirteen examples of "deception" and "financial harm" going out.

Group B: 8. "Be truthful in all communications with the public" going in---and Scott collects $6,239 in "secret bonus payments" going out. 9. "Fairness and high integrity" going in---and a $35 "electronic filing fee" going out.* 10. "We go the extra mile to help you achieve your goals" going in---and a $425 "administration fee" from the lender going out.* 11. "We'll make your home buying or selling experience a pleasant one" going in---and a $250 "document preparation" fee going out.* 12. "You can trust our REALTORS to always put your interest first and foremost" going in---and a $1,440 "Yield Spread Premium" going out. 13. "You need a professional team that understands the industry and is positioned to stay ahead of the game" going in---and a $50 "courier fee" going out.* 14. "We will do our very best to help you get the lowest interest rates possible at the lowest possible price" going in---and a whopping $10,938 in "Pluto fees" and kickbacks going out.

Hopefully, this information will give you a better understanding of Scott's "switching" technique. He consistently does the opposite of what he says he is going to do. As you can see, he often receives a large financial sum for "steering" people into high cost loans. Unfortunately, these large financial gains are coming at the expense of the public.

In summary: The examples above total $10,938 in junk fees and kickbacks, or $5,469 per loan. Scott collected $6,239 in Yield Spread Premium from the lender. As discussed earlier, Senator Merkley says Yield Spread Premium has turned the home mortgage industry into a SCAM. Nonetheless, Scott describes this scenario as: "Keeping the interest of his clients above all else."


Jeff Merkley and Yield Spread Premium:
http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F

Predatory Lending is a major contributor to the economic turmoil we are currently experiencing.

Here is an example of what I am talking about:
Scott Veerkamp / Predatory Lending (Franklin Township School Board Member.)

Please review this information from U.S. Senator Jeff Merkley regarding deceptive lending practices:
"Steering payments were made to brokers who enticed unsuspecting homeowners into deceptive and expensive mortgages. These secret bonus payments, often called Yield Spread Premiums, turned home mortgages into a SCAM."

The Center for Responsible Lending says YSP "steals equity from struggling families."
1. Scott collected nearly $10,000 on two separate mortgages using YSP and junk fees. 2. This is an average of $5,000 per loan. 3. The median value of the properties was $135,000. 4. Clearly, this type of lending represents a major ripoff for consumers.

http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F

Please review this summary of events regarding Scott Veerkamp (NAR)...

1. Scott engages in Predatory Lending with Yield Spread Premium and excessive fees. This is documented on the settlement statements in the link below. Click on Fullscreen in the upper left hand corner of each document. (You will need to scroll to see these documents).
http://jmb27.posterous.com/mortgage-documents-1-and-2

2. Scott refuses to show the property. He refuses to drive (one block) to conduct an open house. (This is documented in the "record of property shown" receipts from MIBOR).
http://jmb27.posterous.com/scott-veerkamp-refuses-to-conduct-an-open-hou

3. After 8 months of refusing to show the property, Scott attempts to sell the property on a land contract with a "due on sale clause." (This is documented with a letter from Chris Moore and a Letter from GMAC Mortgage).
http://jmb27.posterous.com/scott-veerkamp-the-land-contract-scam

4. Scott removes my property from the MLS after I file a complaint with MIBOR. (Please review the document from MIBOR in the link below).
http://jmb27.posterous.com/scott-veerkamp-removes-my-property-from-the-m-10511

5. Scott flips his own listing for a $26,000 profit. This is documented with the purchase agreement and selling price of the property. (You will need to scroll to see these documents).
http://jmb27.posterous.com/scott-veerkamp-flips-his-own-listing

6. Scott refers to himself as a Christian Super Servant. He believes he is dedicated to "keeping the interest of his clients above all else." (This is documented on Scott Veerkamp's website in the link below).
http://jmb27.posterous.com/scott-veerkamp-refers-to-himself-as-a-christi

7. Scott receives a warning letter from the office of the Indiana Attorney General. (This is documented with a letter I received from their office).
Warning Letter.pdf (51 KB)

8. Here is a copy of the response from Scott Veerkamp. (This is documented on a blog from ripoff report).
http://jmb27.posterous.com/here-is-a-copy-of-the-response-from-scott-vee

9. The MIBOR promise...
http://jmb27.posterous.com/the-mibor-promise

10. Comparative Market Analysis

I had to go to an independent real estate agent to get Comparative Market Analysis on the 8202 Eaton Court property. CMA shows an average selling price of $82 per square foot in this neighborhood. The square footage on the 8202 property is 1,420. Scott attempted to sell the property to Chris Moore for $145,000.

Please review Standard of Practice 1-3 in the Code of Ethics before analyzing the following information...


Comparative Market Analysis.pdf
Land Contract Information.pdf

Please review this information from U.S. Senator Jeff Merkley regarding deceptive lending practices. Senator Merkley makes the following statement in his letter to the President:
"Steering payments were made to brokers who enticed unsuspecting homeowners into deceptive and expensive mortgages. These secret bonus payments, often called yield spread premiums, turned home mortgages into a SCAM."

In addition, Senator Merkley references an article in the New York Times entitled "Predatory Brokers." The article makes two important statements regarding predatory lending: 1. "The first step must be to outlaw the kickbacks that lenders pay brokers for steering clients into costlier loans." 2. "The most clearly unethical form of payment is the so-called yield spread premium."

NAR members are supposed to help their clients avoid predatory lending tactics. The code of ethics requires them to follow the "Golden Rule" in the representation of their clients.

If Scott Veerkamp was applying for a loan, would he select a mortgage that is loaded with yield spread premium and junk fees? The answer to this question is obvious. Unfortunately, Scott refuses to comply with the "do unto others" philosophy in the code of ethics. He uses NAR as a selling tool to build trust with his clients. After gaining trust, he "blindsides" his clients with YSP so he can receive a kickback on their loan.

This concept is called "steering" and it can be very costly for consumers. No one would agree to a higher interest rate if they understood the financial impact it was having on their loan. This is why Senator Merkley refers to yield spread premium as a "secret bonus payment."

Please take a moment to review two examples of predatory lending using YSP and junk fees:
Loan 1: (Property value $150,000) A. $4,799 yield spread premium B. $500 processing fee C. $250 document preparation fee D. $50 courier fee E. $35 electronic filing fee F. $425 administration fee (lender fee)

Loan 2: (Property value $120,000) A. $1,440 yield spread premium B. $960 application fee C. $1,920 in "discount points" (paid to Scott Veerkamp) D. $409 administration fee (lender fee) E. $150 underwriting fee (lender fee)
I have provided documentation Scott collected nearly $10,000 on two separate mortgages using YSP and junk fees. This is an average of $5,000 per loan. This type of lending represents the extreme opposite of "protecting the interest of the client."

As I mentioned earlier, predatory lending can cause serious financial harm to the unsuspecting public. Therefore, I agree with Senator Merkley when he says yield spread premium has turned the home mortgage industry into a "SCAM."




The Center For Responsible Lending:
http://www.responsiblelending.org/mortgage-lending/research-analysis/ib-ysp-110507-final.pdf

CRL and Equity Theft:
http://www.responsiblelending.org/mortgage-lending/tools-resources/ib011-YSP_Equity_Theft-0604.pdf

Warning Letter To Scott Veerkamp From The Office Of The Indiana Attorney General...

Warning Letter.pdf (51 KB)

Scott Veerkamp is the President of the Franklin Township School Board and a member of the National Association of Realtors. Please ask Scott to post a copy of his WARNING letter from the office of the Indiana Attorney General. In addition, please encourage Scott to provide a written response to items 1-16 on this website.

Items 1-8 in group A: 1. I have documentation of a WARNING letter that was sent to Scott Veerkamp from the office of the Indiana Attorney General. 2. This letter was sent to Scott in November of 2008. 3. Here are the questions I have regarding this letter: A. Is a WARNING letter supposed to be an example of how Scott Veerkamp was "exonerated" by the office of the Indiana Attorney General? B. Can Scott post a copy of his WARNING letter for the public to review? 4. Please explain how a $1,440 Yield Spread Premium "protects and promotes the interest of your client." FYI: The federal government has banned the use of YSP. 5. Please explain how a $4,799 Yield Spread Premium "Serves Others First." This is in reference to your OTHER client in Wanamaker, IN. 6. Please provide documentation that shows how you "protected and promoted the interest of your client" when you attempted to sell a $120,000 property on a land contract with a "due on sale clause." 7. Please explain how you honored your fiduciary responsibility to your client when you made approximately $26,000 on a $120,000 property listed with REMAX Central in your own neighborhood. 8. Please provide documentation that shows how you "did your very best" when you refused to conduct an open house on a property located "one block down the street" from the house you were living in.

Items 9-16 in group B: 9. Apparently, $26,000 was not enough money to justify Scott driving "one block down the street" to conduct an open house on the $120,000 property. 10. David Worley used to work for Scott Veerkamp at REMAX Central. Scott had an appraisal conducted on the $120,000 property in response to my complaint. The appraisal was conducted by Bill Worley. Are David Worley and Bill Worley related? 11. Scott refers to me as licensed real estate agent. I would like for Scott to provide documentation that supports this statement. 12. Please explain why you removed my property from the multiple listing service after I filed my complaint with MIBOR. How was I supposed to sell this property if you refuse to conduct an open house? How was I supposed to sell this property if you remove it from the MLS? 13. The National Association of Mortgage Brokers stated it is not necessary to pay an application fee. Please explain how a $960 application fee keeps the interest of your client "first and foremost." 14. NAMB says processing fees are a violation of their code of ethics because "they're generally not related to any actual service performed by a broker." Please explain how a $500 processing fee "protects and promotes the interest of your client." 15. Scott ran an advertisement in Christian Phone Book with the following statement: "We will do our very best to help you get the lowest possible interest rates at the lowest possible price." A. Please provide documentation that explains how a $4,799 Yield Spread Premium represents "the lowest possible interest rate." B. Likewise, please explain how a $960 application fee represents "the lowest possible price." 16. ISBA Code of Ethics: Please provide documentation that shows how you "met the responsibilities to your community" when you steered people into high cost loans.

I look forward to a written response from Scott Veerkamp on items 1-16.


Jim Bruggenschmidt


NAR: Predatory Lending Information
http://www.zimbio.com/Exposing+Scams/articles/15VN_4Q6HLA/NAR+Predatory+Lending+Information

Center for Responsible Lending: Seven Signs of Predatory Lending
http://www.zimbio.com/Exposing+Scams/articles/AKevJQHWOKO/Center+Responsible+Lending+Seven+Signs+Predatory

Scott Veerkamp used Yield Spread Premium to receive kickbacks from lenders. Ask Scott to return the kickbacks he collected on predatory loans.
The financial benefit of Yield Spread Premium belongs to the client...

You can find Yield Spread Premium on the settlement statement in your mortgage documents. It will be listed as P.O.C. or paid "outside of closing." This shows the dollar amount of the kickback your broker received for inflating your interest rate.

The Center for Responsible Lending estimates excessive interest rates cost families $2.9 billion each year. Please take time to review the following information regarding Yield Spread Premium and Loan Steering...


YouTube Video: Yield Spread Premium...
http://www.youtube.com/watch?v=iPXsKygQSRc

YSP and the Center for Responsible Lending:
http://www.responsiblelending.org/mortgage-lending/research-analysis/ib-ysp-110507-final.pdf

CRL and Equity Theft:
http://www.responsiblelending.org/mortgage-lending/tools-resources/ib011-YSP_Equity_Theft-0604.pdf

Predatory Lending and the National Association of Realtors:
http://www.zimbio.com/Exposing+Scams/articles/15VN_4Q6HLA/NAR+Predatory+Lending+Information

CRL: Seven Signs of Predatory Lending
http://www.zimbio.com/Exposing+Scams/articles/AKevJQHWOKO/Center+Responsible+Lending+Seven+Signs+Predatory

Please be advised that I am providing evidence of "Bait and Switch" advertising on behalf of Scott Veerkamp and his organization. Scott and his company ran the following advertisement in Christian Phone Book: "We will do our very best to help you get the lowest interest rates possible at the lowest possible price."
Upon review, you will see two examples of "Bait and Switch" advertising in this message. Please take time to review the following examples...

Example #1: A $4,799 Yield Spread Premium does NOT represent "the lowest possible interest rate." Again, I refer you to the Center for Responsible Lending and their definition of Yield Spread Premium: "A YSP is a cash bonus that a broker receives from a lender for placing borrowers in a loan with a HIGHER interest rate than the lender would accept. The higher the interest rate, the higher the premium received by the broker." "The effect of YSP is to steal equity from struggling families."

Example #2: A $960 application fee does NOT represent the "lowest possible price." As discussed earlier, the National Association of Mortgage Brokers says it is not necessary to pay an application fee. Therefore, "the lowest possible price" for an application fee is ZERO.

With regard to advertising, the Better Business Bureau defines "Bait and Switch" in the following manner: "A "bait" offer is an alluring but insincere offer to sell a product or service which the advertiser does not intend to sell. Its purpose is to SWITCH consumers from buying the advertised merchandise or service, in order to sell something else, usually at a HIGHER price or on a basis more advantageous to the advertiser."

After reading this description, it is evident Scott Veerkamp meets all of the requirements for "Bait and Switch" advertising. Here are 4 key points to review: 1. Obviously, Scott was not sincere about offering "the lowest possible interest rate" or "the lowest possible price" to his clients. 2. He simply used these statements as "bait." 3. In the next step, Scott "switches" his clients to Yield Spread Premium and junk fees. 4. Clearly, these HIGHER fees are more advantageous to the advertiser.

In doing some additional research on the Code of Ethics, I found the following information listed on the Metropolitan Indianapolis Board of Realtors website: 1. "REALTORS shall be careful at all times to present a true picture in their advertising and their representations to the public." 2. "The Code of Ethics is a promise to the public that when dealing with a real estate agent who is a REALTOR, they can expect honest and ethical treatment in all transaction- related matters." 3. "Only REALTORS pledge to abide by the Code of Ethics, and only REALTORS are held accountable for their ethical behavior."

Previously, Scott Veerkamp deliberately misled the public when he presented the following statement on one of his websites: "As a Christian business owner, it truly is the desire of my heart to not be a "Superstar," but rather a "Super Servant" with the hope of achieving excellence by keeping the interest of my clients above all else."

Please note: Yield Spread Premium and junk fees represent the extreme opposite of the statement listed above. In fact, Predatory Lending puts the public at risk for serious financial harm. Unfortunately, this is the same public Scott Veerkamp claims to be "Serving."

NAR: Predatory Lending Information
http://www.zimbio.com/Exposing+Scams/articles/15VN_4Q6HLA/NAR+Predatory+Lending+Information

Center for Responsible Lending: Seven Signs of Predatory Lending
http://www.zimbio.com/Exposing+Scams/articles/AKevJQHWOKO/Center+Responsible+Lending+Seven+Signs+Predatory