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Coactive Financial Corp. Complaint - Incompetence and Dishonesty

Review by trident58 on 2007-03-27
GRANADA HILLS, CALIFORNIA -- When my wife and I decided to remodel our house, our contractor reccomended these guys. The loan officer we got had no clue what he was doing, and blatantly lied about the terms of our loan. After we signed the papers, we were given incomplete loan documents to review, so we didn't see the $25,000 loan origination fee and the 8.34 % interest (loan officer told us it was a 1 % interest rate- he didn't know the difference between interest and payment rate). When we finally found out the truth, the loan had funded, so we were screwed. We confronted the manager, and while he grudgingly admitted that his loan officer screwed up, he said the deal would stand. He said he would accept responsibility "as much as he could". All he gave back was $15,000 of the $25,000 origination fee, and we then got soaked an additional $18,000 prepayment penalty when we refinanced to a 6.375 % loan. Moral of the story, if at all possible, deal directly with the big lenders. It's not in their best interest to screw their customers, unlike those amateurs at Coactive.
Comments:5 Replies - Latest reply on 2007-03-29
Posted by Anonymous on 2007-03-28:
I would say the moral of this story is to read the documents before you sign. If you are not capable or deciphering them, or don't know if they are complete, then you need a lawyer to do so for you. It surely would have been less expensive in this case.
Posted by poppapia on 2007-03-28:
How much was this loan for, if the origination fee was $25,000? As KenPopcorn said, you had every right as a consumer to take the documents to an attorney to be reviewed, so chalk this one up as an expensive lesson learned.
Posted by rhondam718732 on 2007-03-28:
Ken said it right. It's amazing how many complaints here are related to people not reading what they sign. And in your case, it was obviously HUGE dollar amounts and you couldn't be bothered to pay attention to fees and the rate? C'mon. You don't have a leg to stand on.
Posted by trident58 on 2007-03-28:
I think I need to clarify a few things here. First of all, notice I am not asking for any refund beyond what I got back. My point is that if a company is going to be selling itself as a competent mortgage company, their loan officers had better know what they are talking about. Mortgage brokers exist because they provide a service. If they can't provide a service, then why are they in business? By beef with Coactive is that they willingly and maliciously lied, and if I could prove it in court, that's a felony.
Yes, it's an expensive mistake on my part because I trusted a loan officer. There's countless other brokers out there that don't pull this kind of stuff, so why deal with the unethical companies? So please, don't imply that I'm stupid and got what I deserved.
Posted by grandma005 on 2007-03-29:
He said that loan papers were hidden from him. You cannot read what is there. Granted he should of read more carefully to see that all the loan terms where not there to see. Interest rate being charged and origination fees missing are red flags. Origination fees are usually 1% of the loan so that means you are talking about a $250,000 loan or more. He should of at least bought someone who was more paper detailed with him to the closing. If I had of been there believe me he would not of been taken. And even I take my son who is a CPA with me to important signing of papers. I once got up and walked out on a refinance of my home because the terms of the loan were different from what the broker said that they were. I lost the $350.00 appraisal fee of course but it was well worth it.

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