Did Ameripath scam me to get a kickback from FHA inspector?

[Marylin360]

My current servicing company is Homeq, and they had been sending me letters and e-mails for months about a "great refinancing opportunity" with Ameripath Mortgage, supposedly designed to allow me to lower my interest rate to the current rate and forgive a portion of the principal balance. I finally gave them a call, and that's exactly what they promised. The zillow estimate on my house at the time of refinance was $144k. I owed $165k when I called Ameripath (refinanced out of my $137k ARM into a 30-yr fixed in 2007-the home was worth $199k then, but even I thought I'd never be able to sell for that, so I only took $165k-to pay off some variable interest rate student loans).

I sent them all of the supporting documents that Ryan Easley, at Ameripath, requested, and he called me the very next day telling me the loan was already approved, that he ordered the inspection, and that I should schedule it ASAP so we could close by end of month in June. I spent $375 I really didn't have, and got back an appraisal of $72k. Easley @ Ameripath ignored me for a week and then told me they wouldn't allow me to refinance at all because of the market...no reduction in principal, no lowered interest...they wouldn't even assume the loan at current rate. He seemed on the phone to be blaming me for not knowing the market value of my home already, and Homeq for his inability to approve me (although, he told me before that I was already approved). When I called Homeq, they said it was Ameripath's sole discretion whether they wanted to go through with the refinance. I requested a formal declination letter from Ryan Easley @ Ameripath, citing with more specificity why the refi was denied outright, but he never sent me one and won't respond to me, now.

I'm a law school graduate and this is my first house, but I feel like a total idiot in this process, so maybe someone could help me with questions.

Can a lender get a kickback from an FHA inspection company? I mean, Ameripath should have had some idea of the market value in my area, and they didn't let me choose an inspector. Did they scam me by telling me I was already approved and pushing an inspection in order to get some kind of kickback from the FHA inspection company?
Do I have any legal recourse in this matter? If anything, I'd like to make sure other homeowners in this sad market don't cough up inspection fees they don't have for impossible refinances in lieu of paying their mortgage for the month.
Should I file a Better Business Bureau complaint against Ameripath?

I have kept some e-mails, but fortunately for Easley, he called me over the phone to say my loan was approved instead of leaving a paper trail for me to provide to them.

Are there any other opportunities available for me to lower my payment/write-off my debt? I'm not in default, but owing $165K on a $72k home is quite a loss on my investment. I am aware that Homeq has already written off to bad debt the difference (mark to market), but is it possible for me to do that, too? After all, it's my investment, also, and I took a biiiiig loss.

Thank you so much. Any responses are deeply appreciated.

[faith]

Originally Posted by Marylin360

My current servicing company is Homeq, and they had been sending me letters and e-mails for months about a "great refinancing opportunity" with Ameripath Mortgage, supposedly designed to allow me to lower my interest rate to the current rate and forgive a portion of the principal balance. I finally gave them a call, and that's exactly what they promised. The zillow estimate on my house at the time of refinance was $144k. I owed $165k when I called Ameripath (refinanced out of my $137k ARM into a 30-yr fixed in 2007-the home was worth $199k then, but even I thought I'd never be able to sell for that, so I only took $165k-to pay off some variable interest rate student loans). I sent them all of the supporting documents that Ryan Easley, at Ameripath, requested, and he called me the very next day telling me the loan was already approved, that he ordered the inspection, and that I should schedule it ASAP so we could close by end of month in June. I spent $375 I really didn't have, and got back an appraisal of $72k. Easley @ Ameripath ignored me for a week and then told me they wouldn't allow me to refinance at all because of the market...no reduction in principal, no lowered interest...they wouldn't even assume the loan at current rate. He seemed on the phone to be blaming me for not knowing the market value of my home already, and Homeq for his inability to approve me (although, he told me before that I was already approved). When I called Homeq, they said it was Ameripath's sole discretion whether they wanted to go through with the refinance. I requested a formal declination letter from Ryan Easley @ Ameripath, citing with more specificity why the refi was denied outright, but he never sent me one and won't respond to me, now.
I'm a law school graduate and this is my first house, but I feel like a total idiot in this process, so maybe someone could help me with questions.
Can a lender get a kickback from an FHA inspection company? I mean, Ameripath should have had some idea of the market value in my area, and they didn't let me choose an inspector. Did they scam me by telling me I was already approved and pushing an inspection in order to get some kind of kickback from the FHA inspection company?
Do I have any legal recourse in this matter? If anything, I'd like to make sure other homeowners in this sad market don't cough up inspection fees they don't have for impossible refinances in lieu of paying their mortgage for the month.
Should I file a Better Business Bureau complaint against Ameripath? I have kept some e-mails, but fortunately for Easley, he called me over the phone to say my loan was approved instead of leaving a paper trail for me to provide to them.
Are there any other opportunities available for me to lower my payment/write-off my debt? I'm not in default, but owing $165K on a $72k home is quite a loss on my investment. I am aware that Homeq has already written off to bad debt the difference (mark to market), but is it possible for me to do that, too? After all, it's my investment, also, and I took a biiiiig loss.
Thank you so much. Any responses are deeply appreciated.

Hello and welcome to the forum,
Unfortunately the lender which is Ameripath has the right to change their mind to refinance your home or not. I think they based their decision when the appraiser gave them the real value of your home which is now down to $72k. If someone came to your house and checked or inspected your house, you as the borrower or seller(if selling the house) is responsible to pay for the Appraiser's fees and the $375 that you said you paid actually went to the Appraiser. Appraiser's charged from $350 and up. Your lender does not get a kick back from the appraiser/inspector of the house. In the past when the market was in each high peak, if your house was appraised higher than what you owe, say you owe $165 and it was appraised at $200k, the lender may give a thank you card and a bottle of wine plus the appraiser fee to the appraiser and will keep that appraiser to be used for other homes or maybe referred them to others. And I am sorry to say that you have lost that money for the appraiser fee and not a kick back from Ameripath.

If you are in financial hardship and unable to pay for the mortgage you maybe qualified to apply for the Obama Home Affordable Mortgage Program. You should call your own lender HomeEQ and apply for that program. Howeer, this plan does not have a principal reduction and no lenders are doing that as of now

[Marylin360]

Thanks, Faith. I still think Ameripath shouldn't have told me my loan was approved before it actually was approved, that was sloppy, but it's good to know they're not just doing these to send business to the appraisers. The whole thing left a really bad taste in my mouth, which is especially so since I wouldn't have tried to refinance at all if not for the fact that both Ameripath and Homeq bombarded me with e-mails and letters promising something they couldn't deliver. Cheers.

[Moe Bedard]

This is the classic bait and switch an then drop back in the ocean. Loan officers do this ALL the time to get you to bite on the "your approved" hook, when in fact you ARE NOT approved and it is more of a huge gamble that is all on you to see what the home is worth.

So, they say your approved, you pay $375 to appraise and the appraiser gets business, the loan officer gets nothing, but paid nothing so they don't care and now your out $375 when most likely he knew there was probably a 95% chance that you would get nothing. To them it's all a number game and from what I understand, well within the law.

Where they may be breaking the law is by not giving your a formal credit denial, copy of your appraisal.

Under the Equal Credit Opportunity Act (ECOA), you have the legal right to know why your credit application was denied. This law stipulates that you cannot be denied credit on the basis of your race, sex, marital status, religion, age, national origin or receipt of public assistance.

Under the Fair Credit Reporting Act (FCRA), you must be told if information in any of your consumer reporting agency files has been used against you. You must be told if your application for credit, insurance, or employment has been denied based on your credit or other type of consumer report. If so, you must be given the name, address and phone number of the agency that provided the information.

You can write a letter and let them know that you plan to tell your story all over the internet and it will cost them much more than $375 in bad PR. This is a common scheme being played on borrowers everywhere and yes some are in bed with these inspectors and appraisers and do get kick backs.

Please keep us posted.

[Marylin360]

They did give me a copy of the credit report. Mid 700s - perfect for the loan, so my credit history is not at all the reason why I was denied. They also gave me a copy of the FHA appraisal - $72k as I mentioned, before. What I don't have is something formal from them telling me specifically why they would do absolutely nothing, even a refi for the same amount at a lower interest rate. That's what really burns me - there was no follow-up. Thank you.

[Marylin360]

Update: Ameripath refunded the entire amount of the inspection to me. Ryan Easley called me to let me know that they had no intention of creating a financial hardship with the inspection for a loan that couldn't go through, and while they couldn't reduce my principal or complete the refinance, at least I wasn't out of pocket the inspection. I feel like they did make an effort to make me whole, again, and I appreciate the fact that they took the inspection money, seriously. Thanks to everyone who posted and the advice. Much appreciated.