Consumer complaint received 2020-10-25
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Meadowbrook Financial Mortgage Bankers Corp. (NY)

Concise Summary of the Issues ( Illegal Property Flipping and Mortgage Frauds ) : Note : I tried to fix the issues with the mortgage company by sending a letter to the seller of the property who is a controlling person of the company as well as to the CEO of the company. None of them responded to my letters ( the letters are attached here ). 

While I was walking on a street in XXXX, New York, I attended an open house in which, XXXX XXXX, a real estate broker employed by XXXX XXXX XXXX, proposed to be my buyer agent for the purchase of a property which I eventually bought on XX/XX/2018. XXXX actively concealed the fact that it was their own property ( under her husbands name ) in violation of XXXX XXXX XXXX of New York. In the same open house, she introduced to me her husband, XXXX XXXX, CPA, Branch Manager/Mortgage Loan Originator/a Controlling Partner ( with a cash investment of XXXX XXXX dollars according to XXXX ) of Meadowbrook Financial Mortgage Bankers Corp. ( MFMB ). XXXX conditioned that in order to buy the property, I had to be approved by, and obtain a mortgage loan, from MFMB using XXXX as my mortgage broker. Later XXXX delegated her duties and responsibilities as my real estate broker to XXXX. From that moment on, XXXX, using all his Affiliated Business Arrangements ( AfBAs ), did everything from hiring my buyer attorney, appraising the property, choosing the title insurance company, insurance broker, closing agent, and all other service providers in connection with the sale of property, its mortgage financing and the closing. I was never given a chance to shop for closing expenses even though Closing Disclosure stated that I did shop for some services. XXXX, as the seller, required me to use a particular title insurance company and required me to buy owners title insurance which I later found out was optional. He apparently received illegal kickbacks and other unearned payments from his AfBAs that he used without my permission. 

XXXX and XXXX never handed to me any disclosure forms required by laws before becoming my real estate broker and mortgage broker and I came to know that XXXX owned the property after singing the contract of sale. When it didnt smell right, I contacted my attorney ( an accomplice of XXXX ) who told me that it was okay for one person to be everything as seller, broker, and mortgage lender ( without disclosure ). I wanted to rescind the contract of sale on the day of closing, but my attorney scared me not to. I was emotionally very distressed on the day of closing and I never thought closing would take place and that is why I did not bring my family or friends to the closing venue. The forced closing took place in my attorneys office without him being present on the closing table. The seller attorney ( an accomplice of XXXX ) is the one who did the accounting and everything else, even though my buyer attorney was lender attorney, and the closing attorney. 

The sale of property and the mortgage financing transactions were not consummated on arms length transactions because one person who is the owner of the house controlled the sale of the house and its mortgage financing transactions to maximize the incomes from every source of the possible opportunities. XXXX fraudulently induced me to accept the offer, finance the mortgage with his company, and trust him to complete the transactions. I have reasons to believe, and I do believe that all the parties to the transactions were engaged in collusion. The appraiser used in the appraisal report larger and much more expensive properties as comparable properties and inflated the appraised value of the property. Without my permission XXXX applied for a mortgage loan with my personal information that I gave him and opened an online account and induced me to esign almost all the documents without reading their contents. 

XXXX and XXXX misrepresented and lied from the beginning of the purchase and financing transactions to the end. While XXXX has a license as a real estate broker, she only lists her own properties ( under XXXX name as the owner ) without disclosing the ownership in illegal property flipping and mortgage fraud schemes, and XXXX finances the mortgages of those properties using his own company ( in substance MFMB is a mortgage brokerage firm disguised as a mortgage lender ) as mortgage lender and provisionally selling the loan prior to the closing. 

I have records of the events that led to the closing. XXXX circumvented laws in every step of the transactions by fraud and forgery. Even though he was supposed to be my mortgage loan originator ( MLO ), XXXX used the brother of the CEO of MFMB as my MLO in the Closing Disclosure without my knowledge. I never knew the brother of the CEO and I never communicated with him but one document was forged to state that I had been interviewed by him. 

After the closing I did some legal research on my own. I found out that XXXX and his accomplices in collusion circumvented/violated many laws, rules, and regulations relating to real property purchase and mortgage financing transactions that is very hard to summarize at the initiation of the complaint. I will also remind you of other laws, rules and regulations that I find according to my research, the couple and their accomplices circumvented. So far I found out that the couple violated, at the very least, the following codes, rules and regulations : ( i ) E-Sign Act [ 15 U.S.C. 7001 ( c ) ( 1 ) ] ( ii ) RESPA [ 12 CFR 1024.6 ( a ) ] ( iii ) Section 9 of RESPA ( 12 U.S.C. 2608 ) ( iv ) Section 8 of RESPA ( 12 CFR 1024.14 ) ( v ) Dodd-Frank Act ( 12 U.S.C. 5531 ) ( vi ) Section 443.3 ( c ) Article 12-A Real Property Law of New York ( vii ) Section 443.4 ( a ) Article 12-A Real Property Law of New York ( viii ) 19 CRR-NY 175.5 ( ix ) 19 CRR-NY 175.6 ( x ) 19 CRR-NY 175.7 ( xi ) 19 CRR-NY 175.12 ( xii ) 3 CRR-NY 38.2 ( d ) ( xiii ) 3 CRR-NY 38.2 ( e ) ( xiv ) 3 CRR-NY 38.7 ( a ) ( 14 ) ( xv ) Common law fraud ( xvi ) Tort of intentional infliction of emotional distress. 

I believe, upon your professional review of issues and other documents that I will submit to you, you will find additional laws that the couple and their accomplices violated or circumvented. Please review the attached letters to get a better idea of the issues involved.