M&T Bank / scam and cheating

Review updated:

We have a commercial loan from M&T Bank. It's originated by Silver Hill under its subsidiary Bayview Loan Company on Sept. 2007 and Bayview sold to M&T Bank after 7 or 8 months later. The loan is for a small MHP in NC. Recently, our tenants are having problems with their jobs. Consequently, a few can not make their rent payments on time. Therefore, we are having a tough time making a mortgage for many months. However, we tried to make the payment on time and keep our credit intack for the possibility of refinancing the mortgage with low interests and low monthly payment in order to be self sufficient.

We called M&T Bank to consider the readjustment or loan modification possibility but M&T told us that we have to be on default status in order to be considered. So, we looked for another bank to refinance the mortgage. However, we found out that our payoff information from M&T Bank for refinancing our mortgage was very disturbing. Terms and early payment penalties were so severe that we do not have the chance. It turned out to be our early payment penalties were over $160, 000 (57%) on the loan amount of $279, 237 and terms were 7 years early payment penalty plus 10 years payment penalty thereafter, which we were not aware of before the contract. There is no written disclosure we can find from the file.

I spoke with many business people and loan brokers about it but they never heard such terms.

I hired a predatory lending mortgage lawyer and he tried to resolve the problem with M&T Bank directly; however, M&T Bank told him that commercial loan is norm in that terms. Basically, M&T Bank wants $160, 000 penalty if we want to refinance it or rather see the default or foreclosure on the loan.

The lawyer told me that he is not expert in commercial loan and we should consult with other commercial mortgage lawyer.

Please investigate the term predatory lending practice on these lenders. Are these terms are norm in commercial loan? Isn't there should be some kind of term restriction for commercial loans?

Hope this helps other business people be aware of their loan terms and find the right bank or financial institution for their commercial loans.

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  • Zz
      Jan 21, 2009

    We are experiencing something very similar with this same bank in Colorado. Have you had any positive resolution?

    +1 Votes
  • El
      Feb 04, 2009

    we are experiencing the same problem in Maryland with M&T... I wish we could get some help on this matter...

    +1 Votes
  • Vi
      Mar 03, 2009

    We are the same with m& T bank and I need to find a commercial finance lawyer also

    0 Votes
  • To
      Mar 13, 2009

    As of 3/13/09 have you been successful with a commercial mortgage lawyer? We too have a similar situation.

    +1 Votes
  • La
      Mar 30, 2009

    I have experiencing very similar with same bank in New York.Plus 28 month's from total 40 month's length of my loan.I was wrong charged with late fee's, when payment's was made on line in time and confirmed by my Bank statement's.

    0 Votes
  • En
      Apr 17, 2009

    This is normal for a commercial loan. This is in place because the originator has investors which require a large return for their funding. When you pay off a loan early they loose on the interest they would have gained from your payments. To ensure they get their money they impose a prepayment penalty and a lock out period. Again this is standard. It should be paragraph 6, 7 or 8 on a Bayview loan. As for the loan mod, most banks do require you are past due to get asst. Not that they want you to fall behind, but if you are making your payments, you do not need help. Yes you might be struggling...but you are doing it. And you are supposed to make your payments-not turn to your mortgage company for help. They are not their to help you or save your credit. It is a business and like all businesses they want their money. Also with a commerical loan you showed proof you could make the payments with out the assistance of the property.

    0 Votes
  • Ma
      Feb 04, 2010

    Hello, Is it any other solution in order to lower your rate, and payments, without geting to legaly modify your commercial loan, with out missing a payment(s) or be in partial default ?
    Please Anyboby who Knows to ansuwer me, for my own knowlage ! Thanks ! Mario !

    0 Votes
  • La
      Mar 01, 2010

    We refinanced our business with M & T Mortgage (Bayview Loan Service) in 2005. When we asked for the payoff amount of the loan last year, 9/2009, they charged us $100.00 for a payoff statement and we were shocked with a 35% prepayment penalty during a so-called lock out period. When we originally took out the loan, we had heard of suspicious 'prepayment penalties' and specifically asked our agent if this loan was subject to a prepayment clause and she said NO.

    Please research this further as we are convinced of unlawful predatory lending practices by their company. If you have more similar complaints, please include ours. We spoke with our attorney, who doesn't specialize in this type of case, but he assured us that it is highly unethical.

    The lending institutions received a government bailout in 2009. Shouldn't there be a government agency that oversees mortgage lenders as well?

    Today we received a Class Action Lawsuit against Ameriquest for illegal lending practices on my home loan. Is there any possibility that a lawsuit of this nature could be started against M & T Bank and their affiliates?

    Thank you for researching this for us and anyone else who has been a victim of this.


    0 Votes
  • Cl
      Sep 30, 2010

    I have a similar problem with M&T Bank in California, after 8 months of trying to get a loan modification on my residential loan Latoya Randall in loss midigation along with Collin Nutton supervisor are saying that they could not approve a modification without me going into default. They said the only way to modify my loan was to show 1-2 30 day lates otherwise they can't. UNBELIEVABLE!!! Why would they take my packet and make me go through an 8 month process with me being current!!!They should have said from the START IF YOUR CURRENT WE CANNOT HELP !!! IS THERE ANY HELP OUT THERE FOR PEOPLE THAT ARE PAYING THERE MORTAGE ON TIME???

    +1 Votes
  • Bu
      Jul 11, 2013
    M&T Bank - Transfer Fee
    United States

    Why does M&T add a transfer fee every month ? I thought that was a one time fee, I didn't catch that in the fine print. It defeats the purpose of transfering to a lower interest card. Please help. Thank You

    0 Votes
  • An
      Dec 15, 2013

    I am in the situation of requiring some type of M&T Bank foreclosure review. IF ANYBODY SEES THIS MESSAGE, PLEASE RESPOND TO ME. THANKS!!!

    0 Votes
  • Sc
      Apr 18, 2014

    Yep, we had a MHP loan through Bayview that was passed on to M&T within a couple of months. M&T screwed up the escrow account for property taxes and insurance more than once, and ended up using the new Frank-Dodd regulations (they said) to require us to have an 18 month reserve escrow for taxes and insurance. Somehow, our floating interest rate never lowered even after interest rates crashed.
    M&T rebuffed all our asking about doing a refi. We had another bank that approached us, and we did a refi with them on a fixed rate 4 points lower than we were paying M&T. M&T held us hostage for a 1.75% penalty on the balance because we could not give them the pay off date 60 days in advance. We decided to pay rather than stick with M&T for another 2 months. We felt they would come up with another gimmick or issue to stop us from leaving without their blackmail payment.

    I contacted a relative who works as the head of regional lending for another bank (top 10 in the USA) and she said that while her bank did not loan to Mobile Home Parks at all right now, the terms that M&T were using, the clauses they were citing were absurd.

    We are going to send a complaint to our state Attorney General and to the federal regulators. If enough people do this, then M&T's policies can be stopped, their activities can be called to account.

    Oh, and M&T said that their penalty was not in the part of the loan agreement that specified early pre-payment penalties, which we had long since passed, but in the fine print towards the end. We still can't find it.

    0 Votes
  • Da
      Mar 10, 2015

    anyone dealing with M&T Bank should record all conversations with them even if they hang up for telling them you are recording them. I was told by on M&T Bank associate that if I tell them I was recording they would hang up because they do not allow you to record their conversations.. you will find some that will allow you to record and that should be the only time to discuss your loan.

    0 Votes
  • Jo
      Oct 16, 2015

    Having the same problem with same bank in michigan.

    +1 Votes

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