The complaint has been investigated and
resolved to the customer's satisfaction
Nations Choice MortgageHorrible company


I inquired about an interest only loan with Nations Choice Mortgage on 4-11-06. I found them on They were listed with very low interest rates and low fees. I guess I should have know right there and then it was too good to be true.

The loan officer Linda Schrader informed me that the loan application fee will only cost me $350. Linda knew I was shopping around for other loans. She told me that no lender should ask for any fees other than the appraisal fee. She claimed the $350 application fee will be used for the appraisal fee so there was really no application fee. Believing it would only cost me $350 I applied for a loan.

On 5-1-06 I signed the good faith estimate and the loan financing agreement. Linda told me I can be approved for a rate of 5.75%. Other lenders told me it was impossible to secure this rate but I trusted Linda. Linda then changed the rate they can offer to 5.87% and then finally to 6.125%. Other lenders again told me it was impossible to secure a loan for 6.125% and quoted me 6.25%.

I received a lock in rate confirmation for 6.125% with a 1% prepay on 5-5-06. After a few days Linda told me that the underwriter will not approve the loan unless we switch to stated income. She said the rate will now be 6.25% with stated income.

I emailed Linda on 5-9-06 requesting for a 100% financing loan with out the 1% prepay. I was never told there would be a prepay penalty. I didn't receive a response so I called her the following day and she told me the rate for 100% financing will be ridiculously high.

At this point I decided to finally apply for a loan with another broker. My real estate agent was very suspicious of NCM because they could not produce a loan approval from a bank. They would only send their approval on their letterhead. On 5-11-06 I received an approval for 100% financing from Chase Manhattan from the local broker.

Linda then informs me that they have problems with gaps in my employment history. On 5-24-06 I called Linda to inform her that I have decided to use another broker to secure my loan.

On 5-25-06 Linda called and told me I have to pay a 1% application fee because of the loan financing agreement I signed. On 5-25-06 Greg Goetz the collections manager called me on my cell phone and tried to coerce me into completing the loan application and promised to have me approved for 100% financing. Greg is not a loan officer but he was promising me he can get a loan approved. When I refused. He then asked me to pay $3300 for the loan application. I asked him to itemize what the $3300 was for. He didn't know. In the same conversation he lowered his application fee demands from $2500 to $2200 and finally to $2000. All sums for which he could not itemize any thing except lawyer and title fees. I informed him that the loan was never secured through them so there can't be any title or lawyer fees. He was very aggressive in trying to get payment and told me it would cost me $2000 just to go to court so I might as well just pay them.

On 5-30-06 I received a letter via Fedex from Nations Choice Mortgage dated 5-25-06. It states that they have only collected $350 of the $5032 non refundable application fee. They claim the Financing Agreement I signed authorized them to automatically deduct the 1% fee. Luckily I put a hold on my account after I found other fraud complaints on this website. I also checked with the Better Business Bureau.

The Better Business Bureau of Arizona reports that the most common complaint against Nations Choice Mortgage is over the rates and cancellation fees. Nations Choice Mortgage has responded to the Bureau stating that recent changes were made to its contract in order to reduce the cause of confusion. Clearly this is not the case and Nations Choice Mortgage continues to try and deceive unsuspecting applicants. Their closing costs estimate on the GFE is for $1495 yet their undisclosed application fee is 1%.

I consulted with the UCLA Law School and they informed me that I was a victim of consumer fraud and maybe even predatory lending. Apparently California is a favorite target for these type of companies because of the expensive real state market here and lax state predatory lending laws.

They also pointed out that it's illegal for companies doing business by phone in the U.S. to promise a loan and ask you to pay for it before they deliver. Requiring advance fees for loans is also illegal even if they call it an application fee. Lastly misrepresenting the terms of the agreements and fees is definitely considered fraud. Mortgage Brokers are required by law to disclose all fees.

I was told to file a complaint with the California Department of Corporations, against NCM and hopefully have their CA Broker license revoked.

Filling a complaint with the BBB is pretty much useless. They consider NCM in good standing because they try to settle 100% of the complaints against them. As far the BBB is concerned NCM asking for $2000 instead of the initial $5032 they tried to scam from me is an act of resolving the complaint. What a joke. No wonder NCM is still is business and a member of the Arizona BBB.

Learn from my mistake do not do business with this company. They just want your hard earned money just for filling out an application with them. They claim they have earned it. Check out this very pathetic attempt via email to get me to pay them:


Regarding your situation, YOU requested your loan to be locked. You expected me to deliver EXACTLY what you applied for. I have and per the SIGNED LOAN FINANCING AGREEMENT I have a right, by the State of
California, to cover the cost I have incurred in processing your loan.

I don't expect you show up at the hospital or a patients home, work for 8 hours, then say 'MY TIME AND MY EFFORT IS FREE, YOU OWE MY NOTHING.'

That is what you have done to us, that is the exact reason that if I can do everything I said I can do in my contact, I do have a right to cover my costs in your loan process.

As for BBB, if I can do EXACTLY what I can do what we signed the contract at, why should I get a black eye. If your saying that I did not provide you what I said I would, I will not ask for reimbursement of costs.

Linda, attempted multiple times to contact you and you did not return the favor until yesterday. We have done EVERYTHING WE SAID WE WOULD DO.

You can talk to Greg about resolution.

From reading other complaints on this website I'm very lucky I never secured my loan through NCM. I probably would have fallen out of escrow.

Guess how much I ended up paying the local broker for securing my loan? 0, nada. I found out that a legit broker receives all his fees from the lender. The appraisal fee was paid for from escrow. I didn't pay a single dollar to the broker.


  • Dx
    DxN Aug 08, 2011

    If you are reading this Beware. Do not use this company!!! They get you in with the low rate then leave you stranded. And don't forget their "famous" upfront $495 you hear so much about from consumers. They collected it before pre-approve or even see if you qualify for the loan or not. This senior loan officer name Dusty was so unprofessional, once he took my $495 hardly ever call me for updates. I asked if my loan is gonna close on time, if it does not is his company gonna pay for the extension. He answered "Hell NO" real professional more like a "used car saleman" You ever wonder why they are NO longer a member of BBB. rest my case. Stay Away and save all the headaches.

    0 Votes
  • Ar
    arizona man Jul 10, 2011

    Nations Choice Mortgage did a fantastic job for me and I would highly recommend them to anyone. my rate was actually lower when I closed than when I started the process. I know this is a complaint site but I get sick of all the negativity and think it is equally if not more important to share positivity.

    0 Votes
  • Na
    NationsChoiceRipOff May 03, 2011

    Nations Choice Mortgage is a scam and they should never be used. I had the same issue with them. They quoted me one rate and then tried to bump it up to almost .5% higher based on a debt to income ration being over 40% at 43%. They said Fannie Mae would not accept anything over 40%. Then I found out from another mortgage professional that there is no rate increase on a debt to income ratio and Fannie Mae's limit is 45% not 40%. He said they straight out lied to me. I also caught them in a couple other lies. I cancelled my business with them and since they did not get me the loan at the rate they quoted me they had to refund my application fee. The mortgage professional also said never pay an application fee to anyone. That is almost always a scam. However, 3 days after I cancelled Ron Goetz sent me an email with a loan qu0te, not on a GFE, and then said since they could get me the rate they quoted me (3 days after I cancelled with them) then they did not have to refund the application fee. Can you believe that crap? DO NOT DO BUSINESS WITH THESE PEOPLE.

    0 Votes
  • Fr
    Friend who is a writer Jan 03, 2011

    My friend had a similar experience, but he had to sign a nondisclosure form to get his money back, so he can't comment, but he told me the whole story before he signed the agreement so that I could tell it, and help protect other people.

    The main thing he would like people to know is that 1) they are liars, 2) they are liars, and 3) they are liars. They might actually make a loan now and then, but it sure seems like they just like to collect fees. If you say you suspect as much they will lie and tell you that is outrageous.

    Also, as other people say, they won't answer the phone when you need them. One thing works. Call as if you want to start a loan application. They always answer that line. My friend sometimes got his own agent, after ringing his line 15 times, only to have him pick up on the first ring on the new business line.

    My friend is a writer and journalist with access to major newspapers and magazines, and when he told them to f**k off, he said that he could make back the fees they had collected by writing his story. Within five minute he had a fax with a nondisclosure statement promising full reimbursement in exchange for his promise not to tell anyone what happened.

    So his advice to everyone is: 1) don't do it! and 2) if you do, threaten to plaster negative publicity all over sites like these if they don't make a full refund. He did get a check for the full amount of all fees.

    PS, he had a 4.5% mortgage, and was trying to catch the dip down to 3.5% for a 15-year loan. he had all his paperwork in and done, excellent credit, more than enough income, 60% LTV--all easy as pie. They sat on his paperwork for six weeks and by the time they were (perhaps) ready, they had let the lock lapse and rates were back up to 4.5%. He figures he would have saved $35, 000 over the length of the loan if they had just done what they promised, promised, and re-promised they were going to do.

    0 Votes
  • Be
    Beware of Biz (Bob) Dec 31, 2010

    I am hoping this is a forum that people will seriously read before making the same mistake I (and evidently several others) have made.

    NationsChoice advertises low rates and no fees. Before long, however, "we want to help you close this deal before escrow closes so let's get an appraisal done." That sounds right. "Now we just need $500 for the appraisal...It's not a fee, it just covers the appraisal." Hmmm...well, I do want this property and I need to close the deal's my credit card number...

    Days turn into weeks and you can't wait any longer..."Hey, how's my loan going?"

    "Things are looking good. Our underwriter just has a few questions but if you can fax us over some additional documentation I think we can complete your loan."

    Sounds great, huh? Not so fast. You fax everything they need, some things twice since 'somehow' they misplaced a document or two. Then you wait some more. Now you're getting a little nervous because escrow is creeping up on you. You don't dare pursue another lender because NationsChoice is already into for the $500.

    Well, they finally break the news (with a real positive spin) that it "appears" that they can "almost" approve you but because of some technicality the rate will be higher than advertised and, well, they're going to need to charge your credit card another $1, 000 because your particular loan is a "little out of the ordinary." They found out through the appraisal that the house has nine windows instead of the standard eight windows, and there are three outlets in the master bedroom, not the four required by the 'American Institute of Master Bedroom Outlets.' But, not to worry, "we're working really hard for you and you're going to be so happy with your new home."

    As you are only days from escrow closing you call/email daily. "Oh, I'm sorry, so-and-so is out of the office today" or "She just left, can I take a message?" Of course, you're getting calls from your agent (who may have warned you about unscrupulous lenders like this, but 'you knew better') and the escrow office but you've got nothing solid to share with them regarding the status of your loan.

    You finally come to the realization that you've been "had." There is no loan, the 'underwriter' is a figment of someone's imagination, and someone in Gilbert, AZ is trying to determine on a Friday afternoon which bar they're going to celebrate with your "appraisal fee."

    Oh yeah, at some point during the day you receive a phone call from NationsChoice. They've been notified by escrow that escrow is over and there's no deal. That wonderful sales person from NationsChoice that wouldn't return your calls for days now begins to call you wanting to know why you're canceling your loan. You stand in disbelief thinking that it's all a nightmare and that you will wake up soon. But no. It's real. You've done everything you were supposed to in an all out effort to get your loan. They've lead you along with no intention of ever giving you one and now they want to know why you're canceling. It's insane.

    Is there a silver lining to this very dark cloud? Yes. Don't worry about them bothering you with another phone call. They have your money, they don't need you anymore. The silver lining would be prettier if someone out there heeds this warning. Please get your loan from a reputable lender. Whatever you do please DO NOT do business with this lender.

    0 Votes
  • Za
    Zaggin Dec 17, 2010

    Avoid NCM, unless you like to have your loan in process for 4 months and dealing with horrid customer service. They do not respond to inquires (even simple ones like asking when the loan will be approved, after waiting 2 months), only to initiate dialogue when additional forms or information is needed. Then they really come down on you to get the additional requirements ASAP and even blame you for delaying the loan. (Did i mention, this is after 2 months of non-response from them until you initiated the inquiry?) I would expect that they would define all of the requirements up front, instead of creating delays in the process. I seriously wonder how much better (and cheaper) it would be if they just were efficient in their processes.

    0 Votes
  • Eu
    Eufort Nov 22, 2010

    Thank goodness that I came accross these complaints about NCM. I was about to contact them to inquire about their very attractive no points, no closing costs loan. When it is too good to be true then, it must be.

    0 Votes
  • Cy
    cypherpu Sep 06, 2009

    Yeah, this reminds me of my dealings with them back in 2005. They operated under the name At that time, I was refinancing an ARM. I have an excellent credit score and verifiable income. I initially made contact with Jason B(arton). They gave this great looking GFE with low closing costs. I submitted everything they asked for within 48 hours. Then they went silent for, I think a month or two. When they contacted me again, they gave me a revised GFE and it had $5, 000-$6, 000 more in closing costs.

    At that point, since interests rates had been rising, I had lost about 0.5% on the best available interest rate. I contacted my current bank and refinanced with them. I will never deal with a mortgage company across state lines again.

    I strongly felt this was not an honest mistake. (I am in a business where you have to be very honest and make full disclosures.)

    0 Votes
  • Bi
    bindmoggler Jul 21, 2009

    I would love to know what the cost of your lawyer was, and if I could have his/her name. At least you were only out the $395 appraisal fee...maybe if you seek financing elsewhere, they will accept that appraisal and another fee won't have to be paid. I would encourage that route.

    We were taken for $1200. No calls were returned when we said we wanted to cancel our dealings with them and then again when we asked for a refund. I feel really stupid for falling for their nonsense, but cannot dwell on it; don't have the time!

    0 Votes
  • Ca
    Cactus Jul 07, 2009

    I went through a very similar experience with Nation's Choice in Arizona.

    I was quoted a rate of 4.875 pct at the end of April, 09 when I told Nation's Choice I was applying under HASP (which allowed at that time up to 105pct LTV). They boasted how they were already writing loans under HASP. They claimed their "system" valued my home at $235, 000 in spite of my telling them it was last estimated at $218, 000. I should have been suspicious when the loan docs came back with $235K as "owners estimated value". I was told I had a 30 day rate lock.

    Our home appraised for $215K about halfway thru the rate lock period. For a week after, I was told everything was fine and then told we were "clear to close". But then I received a shock when our rate was hiked up to 5.25 percent! Nation's Choice claimed two reasons. One, they claimed our rate lock would expire (even though the date was six days away). Two, they claimed *****I***** overestimated the value of my home. They claimed there was no way they could write the loan for 100 pct LTV (the final ratio) and make money. This is in spite of my providing a lower estimated value and in spite of my telling them up front I was applying under HASP. I got the same baloney from a supposed manager about how I would be denying them a chance to make money.

    In my case I lost the $395 appraisal fee, I hadn't gotten around to signing the final docs. I did consult with a lawyer, who said that while sleazy, this is unfortunately legal. Rate locks are meaningless is and so are the supposed checks and balances against lenders politicians claim to have put in place. Until you sign the final docs, you are powerless. The lawyer did strongly urge me to avoid further dealings with the company, even if they tried to sweeten the offer. He said such companies usually stall until the last moment to show the final loan docs and sneak in all sorts of things into the "fine print".

    My advice--stay away from anyone who does business like this. Legal? For the sake of argument, lets say yes. But it is a rotten way to do business. Nation's Choice sells 100 pct. of their mortgages according to the documents I signed. They don't care about keeping a long term customer--they care about what the loan will provide them as a profit at closing. At the time of my closing, the rates had gone up and simply put, Nation's Choice was passing the buck to me.

    1 Votes
  • Su
    Susan M Apr 09, 2009

    I'm in Arizona and now they are preying on homeowners facing foreclosure!

    1 Votes

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