Lender Scam Warning - North Carolina

10 Replies

Hey everybody,

Recently had an alleged lender try to scam me while trying to originate a loan. Nothing came up on google or BP when I searched his contact info, so I'll put it here for any future targeted investors. Interestingly, my agent was recommended this lender via a professional facebook group. Trust but verify, folks.

Lender's email: curtisleonloans at gmail dot com

Avoid this lender.

in what way out of curiosity did you think this was a scam.

rate too good to be true

wanted small up front money to get started..

approved U way too fast  

can you elaborate for the audience.. these lending scams are rampant on social media.. 

@Jay Hinrichs   A little bit of it all. Rate was too good to be true IMO. Rate was given as 4% flat fee regardless of loan amount ($5,000 - $5M) or any other property details. Loan was approved in hours with very little information req'd and loan application only asked for some basic personal details and requested loan amount. With the app submission, I asked the lender to send me his credentials for my verification while the application processed. Instead of a response, I received an approval and a request for an $870 origination fee accompanied by an odd write-up defending the fee - stating that it would help them "trust me" and "know that I was a serious businessperson." Kind of hilarious, really.

Asked him to call me to discuss. Answer: "I am very busy with my many other clients and can call you at a much later date. Let me know if you'd like to proceed with your approved loan."

Luckily didn't waste a whole lot of my time and none of my money with this one. 

@Eric Adobo Can't argue with that, brother.

a couple of take aways for those reading this.

there is NO private money less than about 9% apr and that's for the absolute best and most experienced.. if your starting out it will be above 10 and probably closer to 12%  short term fix and flip product.

you can get rates from a legit mortgage broker bank or other Licensed lender and those rates right now for non owner are about 5.5 to 6... private long term mortgages through bigger HML are at 7 to 10.. this is for buy and hold product.

And lender that says they do 5k to 5 million or  5k to 50 million like I have seen is hands down a phony..  

a lender capable of doing large loans like that would never in a million years fool with a 5k loan right ???

any up front fee other than credit or appraisal is not warranted by any lender unless your doing a large commercial deal where there is a huge underwriting job to be done.. again not with vanilla SFR or small multi.

Of course owner occ variable rate loans can start out low.. but I suspect that's not what you were doing.

these guys prey on those that just don't know what they don't know in the mortgage world and just send in the 870.00 and never hear from them again.. sad but very true.

also if you like American Greed there Is a great episode on Remmington Financial I highly recommend these guys were the king of mortgage fraud and pump and dump due diligence schemes.. they got away with it for 20 years.. 5 to 10k at a crack.. I personally remember talking to them in about 2010 when credit froze..  I had a fairly complicated model I was doing and same thing they approved me to quickly just send in 5k to go to the next level.. I never did.

But my dad showed me these mortgage fraud guys way back in the mid 70s  its been going on for decades.. now its just turned into the Nigerian prince schemes.. 

The fact that a mortgage provider is operating with a gmail (or similar) account would be an instant red flag for me. I of course don't hold the same standard for other roles (e.g. I've worked with real estate agents that use gmail accounts).

get your hands on a Scottsman guide 50 to 100 of the top lenders in US will be listed their rates clearly denoted and terms.. one thing you will find is NO one does a 5k loan  … other than scammers.

A borrower may choose to “Trust” , but a genuine lender would stress on “Verifying” the borrower’s credentials and the property/ deal details. A lender eager to lend without much verification is a definite red flag!