NOTE: Ryan Homes has apparently discontinued "free" incentives, though they still push you to NVR Mortgage. Its good only for them, not for the buyer. Avoid NVR mortgage if at all possible. They are just loan brokers looking for transaction fees, in selling your loan to a real bank ASAP.
Legally Ryan Homes can offer incentives, but they cannot
require that you use a specific lender. Also the discount offered must be a true
and actually discount to the customer and not built back into the cost of the
loan. In other words, the loan must be competitive with what you could receive
on the open market based on your credit score and financial ability. If this law
is violated then not only are they potentially breaking RESPA law but the
Federal Trade Commission as well.
According to the Federal Trade Commission's Web site, "tie-in sales" may violate
federal antitrust law: "The sale of one product on condition that a customer
purchase a second product, which the customer may not want or can buy elsewhere
at a lower price, is a tie-in. Requirements like these are illegal when they
harm competition."
I recommend you DO NOT finance through NVR Mortgage. They have been reported to alter contracts, and give people the option of signing crap deals point blank at closing or face immediate default on their contract and lose tens of thousands on what becomes their non-refundable deposit.
In one case, NVR/Ryan homes nailed reputable people that
had good credit with a 14% APR, more than twice what was agreed long before
closing. They signed under threat of losing
their deposit and assumed they could just go to another bank to get a fair deal.
But it got worse...the Ryan Homes house was seriously defective, and thus they
could not get refinancing, nor would Ryan Homes fix their house. It took these
people almost two years to get their life back from Ryan Homes and NVR mortgage.
This is just one case. Not all get their life back, once you get mixed up with
these people.
Sure things work out in some cases, but do not believe that your contract is
binding to NVR. The rule of law is designed to serve them, not you the buyer.
Try to find a mortgage broker or actual bank, that doesn't just use trust as a
logo. You can still get your incentives without helping the pres of NVR mortgage
department make his $5 mil bonus, on top of his meager $300,000 a year salary.
THE BOTTOM LINE anyway you cut it, the goals of forcing NVR financing on buyers
is to extract benefits back to NVR through incentives.
People have successfully gone through a different broker or realtor, because of
the bad terms NVR tried to stick them with. They still got the buyer incentives
without tipping NVR, which is nothing more than a broker anyway.
NVR Mortgage on rip-off report
Link seeking class action participants against NVR Mortgage for unethical lending practices
Growing complaints about NVR/Ryan Homes Mortgage schemes
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