Another Breed of Squaliforme Surfaces - Eric McDougal

Just when you thought it couldn’t get any worse, now comes a new breed, a mortgage lender/broker who works in collusion in advance with the Echeneidae Collectoris.

Offering kick-backs to collectors for referrals for high-interest loans, one Eric McDougal, a Sacramento-based mortgage broker, is ever the self-promoter. Finding his way on to a web site forum for collections “professionals” he touted his “services” to the crowd:

What are "anyones" feeling on referring out the debtor to a mortgage company to help pay off the debt within a 2 week period and making your EOM (end of month)?

I can help. I am a loan officer in California and have been working with collectors for the past 3 years. I can do lending in all 50 states, so there's no need to be looking for a broker in each and every state. I keep in constant contact with my clients and my collectors and will never ask to settle a referred debt.

Please contact me at xxx.xxx.xxx and I will explain more and what we can do for each other.

Thanks,
Eric McDougal

One of the more savvy Echeneidae mentioned there can be problems with the TILA-required 3-day rescission option - and Eric’s response?

Well, let me explain what I do in the case of the 3 day recision....... Are you ready.... this is pretty big.... I will do a check by phone, out of my own accout and then be remburised by the title company.

2. Checks will NEVER be cut directly to the debtor, I have my title company do a direct wire into your companies accout.

3. I am self employeed... If I don't close, I don't eat. I am NOT a direct lender, I am a mortgage broker. Therefore I can use many many lenders to push loans thru. From manufacter homes to Texas loans with a hundred head of cattle on 100 acres.

Now, on the question for credit scores. There is one lender that will go down to 475 fico. Unfortantly that will only come with a 65-70% LTV (loan to value). I like to stick to 500 and above in which I can get a loan secured at 80% LTV (as long as there are no mortgage lates) and with some of the lender's that I use, I can get an extra 5% exception, if needed.

ALSO, I like to put on contests within the office.. Some of the collection agencies that I have worked with will allow me to give away Mexico Trips or other kind of incentives for the collector that funds the most loans.

I agree with you, a lot of lender's CAN'T close a window, but I like to work hand in hand with the collector to put the fear of God into the debtors and keeping in constant communications.

Give me a shot, you won't be disappointed.

What'll you bet the borrower doesn't realize they're not getting a check for the amount they were expecting until after they sign at the closing? And isn't it a great idea to be working with a mortgage broker who likes to work hand in hand to put the fear of God in you?

When dealing with someone with an apparent 5th grade education and spelling skills, one should expect to be at least disappointed. And as to another question about having the consumer's credit reports fixed:

100% of my pipeline is collection referrals.

You are correct in thinking that the "smarter" consumers are going to request that their neg. tradelines be deleted, but the honest answer is.... they don't.

These are consumers that, well, had a bad month and decided to "charge it" with hopes that money would be coming in the prior month. The only thing I've ran into with a knowledgable consumer is refinancing fees, in which I will work those out with them until we become in agreement, but, the negotiations can only last so long with the collecter calling and calling with the threat of legal actions. At that
point, the debtor just wants to get it over with.

Notice there is never any concern that the debt might be completely invalid? Doesn't matter to guys like Eric McDougal.

Again, converting unsecured debt (valid or not) into secured debt is just one of the industry’s goals and the low-lifes like Eric are out there beating the drum to collude and put people further into jeopardy while spreading the wealth with kick-backs off of what might be completely invalid debt.

And you don't suppose the lenders stepping into these scams are of the high-caliber, upstanding variety, now do you? Sure they are. And it don't rain in Indianapolis in the summertime.

What we see happening is taking a few thousand dollars of possible debt, turning it into a predatory refi loan that's secured by the victim's property, and then handing that off to one of the sub-prime servicer Squaliformes.

If you ever talk to a mortgage broker out of California by the name of Eric McDougal, hang up and don't return further calls.

McDougal better not show his sorry arse in these parts. We have places for people like him. Cold as all get-out in the winter; hotter'n hell rest of the time. I'd recommend a new line of work but most require honesty and moral turpitude.