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Oregon Road Conditions & Cams Advertisement Email Story to a Friend May 15, 2006 Questionable mortgage lending practices on the rise Number of complaints from consumers piles up at Oregon's broker watchdog agency The Associated Press EUGENE — Some 50 times over two months, Gordon Marlatt of Portland was hounded by telemarketers pestering him to refinance his home mortgage through a Portland-area mortgage broker. Jony Wilson of Medford thought she was paying 10 percent interest on a "bridge" loan through a private lender to buy property and build a new home. When she tried to refinance with a conventional mortgage, she discovered fees and hidden charges that amounted to 50 percent interest on the original loan. Both joined an increasing number of people filing complaints with the Oregon Division of Finance and Corporate Securities, which regulates the state's mortgage brokers. A combination of unorthodox loans, inexperienced mortgage lenders and new home-buyers resulted in a 30 percent increase in complaints about mortgage lending practices in 2005. Numbers so far this year are on a similar track. "Not every complaint means something was a violation or that somebody did something wrong," said David Tatman, administrator of the state Division of Finance and Corporate Securities. Advertisement But of 249 complaints to Tatman's agency last year and another 75 routed through the state Department of Justice, 49 actions such as sanctions were logged, compared to 16 the previous year. None of the 2005 complaints pointed to criminal actions, but seven of the 184 received in 2004 led to prosecutions. The agency is holding its first mortgage and lending forum May 22 in Portland, and Tatman says he hopes it will attract upward of 200 mortgage customers willing to share their experiences and help regulators rein in a burgeoning flock of brokers. "We want to take a look at how they are treating their clients," Tatman said. "Are they making the appropriate disclosures, and so forth. And are these problems, or isolated incidents of unhappy consumers?" Joe Camarena, president of the Oregon Association of Mortgage Professionals, said complaints have increased at about the same rate as home mortgages and refinances, to record-setting levels. He acknowledged there is more learning needed by a new crowd of home buyers and by the nearly 15,000 brokers now licensed to sell loans in Oregon. "I don't think there's really people out there with the intent to defraud," he said. "There is a small percentage of brokers who just aren't up to date." The organization will take part in the May 22 forum. Camarena said his organization will help anyone who has problems with a mortgage broker or who wants to learn more about the mortgage lending process. "We're very proactive," said Camarena, who owns The Mortgage Source brokerage in Portland. "You want something as a consumer, we're going to walk you through the process." Tatman agreed that the booming market has fueled a rise in lending disputes as have inexperienced buyers. "We've seen home buyers get in to the market that historically haven't been able to get in, and that is a plus," Tatman said. "Now the question is, will they be able to stay in? I guess we'll just have to wait and see." Marlatt, who was besieged by telemarketers, said his complaint dried up the unwanted phone calls almost immediately. "In the last year and a half, there's just been a huge influx of young people who get into the industry," Marlatt said. "Tons of brokers come to the table to close, and have no idea what kind of a deal they've got, which is kind of scary. "But those things come and go. They've still got the bad apples, but they seem to weed them out eventually." Information from: The Register-Guard, http:www.registerguard.com Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback www.bingo.com Home Security Systems Trunks, Footlocker Custom Build Computers Discount Hotel Reservations online casinos news Ashley Furniture HomeStore Send Flowers Southern Oregon Loans California Casinos GMAT Prep Windermere Van Vleet Sports Equipment Online Casino Reviews Online Bingo Entertainment Guide Online Casino Fundraisers Sudoku Online Casinos Canada Online Pharmacy Advertisements Advertisement