Wilmington Finance/Morequity

Mortgage lenders

In Feb 2005, I refinanced my home with Wilmington finance. The first

inkling I had of a prepayment penalty associated with this loan was when

presented the last document at closing. I also found out after the fact

that the terms of the prepayment penalty were in violation of Louisiana

laws on this subject. The position of Morequity and Wilmington finance

is that they are federally chartered institutions and do not have to

comply with state laws. =20

Unfortunately, once you have gone to closing on a mortgage, you cannot

just stop without incurring a penalty. However, the banks can

misrepresent (by not telling the lender) anything they wish according to

these companies. =20

Since originating this loan, my family has been a victim of hurricane

Katrina where we lost both our home and all possessions. During the

rebuilding process, Morequity was a apin to deal with. In addition,

both my wife and myself had suffered from symptoms of Post Traumatic

Stress Syndrome and wish to move away from flood prone areas. I have

been ofered a job in Baton Rouge, LA, but will be forced to either

commute 180 miles per day or incurr a financial hardship if I sell our

house due to the 5 % prepayment penalty.

I am in the process of filing a complaint of predatory lending with the

Office of Comptroller of the Currency and would ask that anyone reading

this complaint refuse to do business with either of these companies.

Thanks

Doug Broussard

Comment On This

I am in the exact same position. Was told that I had a 2 year pre-pay which matched my 2 year ARM. At my own fault, I did not notice the discrepency in the paperwork until I went to refinance my loan after two years.

I have been constantly harassed by the original mortage broker to re-finance the loan so that they can rake in yet another commission from me and probably try to stick me with yet another bogus loan.

I attempted to contact MorEquity and of course they are willing to waive the 5% pre-pay penalty, however, they will make it up on points or some other fee somewhere else.

Bottom line is, dont do business with MorEquity or any broker that works with them. This is a company that will do anything to get your business and then just let you hang there suffering when you discover that you have beeen duped.

Thanks

Kenneth Poindexter