First Magnus Financial Corporation Payments of Illegal Kickbacks (RESPA) And False Advertising (TILA)

To:

Consumer Affairs
Arizona Department of Financial Institutions
2910 N. 44th Street, Suite 310
Phoenix, AZ 85018

March 7, 2006

Re:  First Magnus Financial illegal junk fax mortgage lead purchases, payment of illegal kickbacks and false advertising of mortgages in violation of RESPA and TILA.

To Whom It May Concern:

Please investigate the First Magnus Financial Corporation dba Great Southwest Mortgage payments of illegal kickbacks in violation of the Real Estate Settlement Procedures Act (RESPA.) First Magnus paid kickbacks for mortgage referrals to lead generators who illegally sent unsolicited faxes with entirely false advertising of mortgages, violating the Truth In Lending Act (TILA) and the Telephone Consumer Protection Act (TCPA.)

First Magnus Financial Corporation #2
DBA: Great Southwest Mortgage
603 N. Wilmot Road
Tucson, AZ 85711
(520) 618-9000
home office #0903297

For your reference, I am including the 6/24/05 junk fax received on behalf of First Magnus, advertising an ARM with a 4% APR and rates of 1.25%, 1.343%, 1.444%, 1.552% and 1.669% for the first 5 years. 

The advertised SAVINGS are not savings at all. In fact, they are DEFERRED INTEREST added to the loan amount.

Also enclosed are my 3/2/06 Motion for Reconsideration and my Initial Disclosures regarding the First Magnus violations of the TCPA in my suit in Kingman, AZ, Justice Court case # 80105 CV 2716 UN.  First Magnus was recently dismissed because it did not send the fax to me and only paid the lead generator for the mortgage referral.

First Magnus loan agent Justin Fish was fully aware of the fax and its content, the audio recording is posted at http://fight-back.us/forum/index.php?showtopic=1088 First Magnus failed to acknowledge any wrong doing and apparently continues to pay these illegal kickbacks for mortgage leads obtained through false advertising and illegal junk faxes.

Please enforce RESPA and TILA not only with respect to First Magnus, but also issue an advisory letter to inform all mortgage brokers and mortgage bankers that lead purchases are violating RESPA’s illegal kickback provisions.

Just last week I received 3 more of these mortgage junk faxes advertising loans with entirely false terms and today I received an unsolicited call promising approval for “the lowest rate” regardless of credit and income! The call is posted at CreditSuit.org

Too many consumers’ lives are destroyed because they were deceived by unscrupulous lead generators and loan agents.  Often their lies cause foreclosures, divorces and sometimes even death.  I hope you consider the protection of unsophisticated consumers more important than scummy mortgage corporations’ profits.

Sincerely,

Christine Baker

c:  posted at http://mylitigation.net/, http://fight-back.us/forum/index.php?showforum=89, http://creditsuit.org/ and at other websites

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9/6/08 Update:

On 5/24/06, the AZ Dept. of Financial Institutions wrote that it refused to investigate my complaint.

Richard Traveler, Senior Examiner of the Consumer Affairs Division, wrote that my complaint of false advertising and illegal kickbacks had to be “settled” through civil litigation.  He closed my complaint until I provided him with “a decision by the Court that warrants reopening of the complaint.”

Richard Traveler is your typical corrupt regulator.  He had the false advertisements, he had EVERYTHING to immediately revoke the First Magnus lending license.

He chose to protect the criminals and to ensure that they could continue to originate loans.

It is not MY job to protect the residents of Arizona from false advertisements!

I don’t get paid for litigating for the American public.  While I eventually prevailed against First Magnus on appeal and settled with First Magnus before they went bankrupt in 8/2007, many Arizonans were lied to and mislead and now Arizona is one of the states with the highest foreclosures rate. 

Mr. Traveler ought to go to prison or at the very least, pay restitution to all Arizonans who were mislead because he failed to do his job.  And since he is unlikely to be that wealthy (although there is the possibility of kickbacks paid to him) and probably has immunity, the State of Arizona is liable for the damages.

The State of Arizona KNEW about the mortgage fraud and REFUSED to do anything whatsoever to stop it.

Instead, it gave lenders the green light to continue to defraud borrowers and to ignore all lending laws.

On 8/16/07, they revoked the First Magnus license because it STOPPED funding loans. 

NOT lending is the ONLY reason a lender in Arizona will be punished for.