FREQUENTLY ASKED QUESTIONS AND ANSWERS
1. WHO IS INFORMATION BROKERAGE
SYSTEMS AND WHAT KIND OF PEOPLE WILL BE MANAGING MY MORTGAGE?
Information Brokerage Systems has been in business providing
biweekly mortgage service since 1989. In 1995, we developed the
Mortgage ManagerTM software program making it possible to
provide the biweekly service at no cost to the homeowner. Our Lenexa business license number
is 10011767. Our Dun & Bradstreet number is 79-922-3433. We're also members of
several business organizations in Kansas including the Shawnee Chamber of Commerce.
The Mortgage Management Division of I.B.S. is headed by Executive Vice
President Michael Edgecomb who has received national honors for his work with homeowners just like
yourself. These honors include being featured in "Who's Who Among Outstanding
Americans," "International Leaders in Achievement" and the 1996 edition of "500
Leaders of Influence" which is on permanent display at the U.S. library of Congress in
Washington, D.C.
The International Biographical Institute has awarded him "Man of
the Year" for 1995-96 for his development and production of this software - the Mortgage
ManagerTM . This software program has helped thousands of homeowners just like you
save $50,000 to $150,000 and more, eliminate years of mortgage payments, and avoid costly lender
miscalculations.
You'll have certified trained mortgage reduction experts managing your
mortgage and they are just a phone call away to answer any of you questions.
2. HOW LONG AM I COMMITTED TO YOUR
SERVICE? WHAT IF I DECIDE TO TRY IT, BUT LATER CHANGE MY MIND?
Using the Mortgage Manager
TM
, even on a trial basis, commits you in no way. Our service is
free so trying it costs you nothing. If you're unhappy, you can cancel at any time without
any obligation whatsoever. However, our past experience tells us you'll enjoy the service and
the savings so much you'll be telling your friends and relatives about it.
3. HOW IS MY MORTGAGE PAYMENT PROTECTED WITH
YOUR SERVICE?
We all work hard for our money and we want assurance that it's fully
protected. We hear in the news everyday stories of "fly-by-night" companies,
embezzlement of huge amounts of money, etc. With our biweekly mortgage service, your funds
are fully protected, insured, and are at absolutely no risk whatsoever.
All biweekly mortgage service is done electronically and governed by
Regulation "E" of the Federal Reserve System. Regulation "E" is a
consumer protection law which regulates the transfer of your funds. In its simplest form,
Regulation "E" states: "An account holder has 120 days to contact their bank
to reverse any unauthorized electronic debit to their account." This can be verified at
your local bank or Federal Reserve location.
Your biweekly mortgage payments are protected by various safe guards to
eliminate such illegal activities such as embezzlement. Any fund transfer over $1,000 has to
be approved by an officer of the company and NO fund transfer can exceed the maximum amount of any
single mortgage we service. Every employee of the company is covered under a self-insured
"employee dishonesty bond" thus protecting every one of our mortgage payments up to
$10,000.00.
Our free software also allows you to track and audit your mortgage
payoff and savings every step of the way by using a special code number we send to you after a
minimum of six months on the service.
4. I THINK I'VE HEARD OF THIS SERVICE BEFORE,
BUT IT WAS NEVER FREE. HOW CAN YOU PROVIDE SO MUCH AT NO COST?
The Mortgage Manager
TM
competes with over 600 banks and other private companies who offer
biweekly mortgage service. They ALL charge a fee ranging from $395.00 to over
$1,000.00. We could easily do the same, but homeowners who are just getting by (and who need
this service the most) have a hard time paying a few hundred dollars when it's going to save them
thousands of dollars.
When we developed the Mortgage Manager
TM
, we searched for a way to eliminate this cost and provide the service
free to the homeowner. Volume is how we are able to still generate revenues without charging
the homeowner. The Mortgage Manager
TM
is the most popular and efficient mortgage reduction system in use
today. We're paid interest in exchange for managing millions of dollars in biweekly mortgage
service. Every company has to generate revenue in order to service their customers and stay
in business, however, our earnings don't come out of your pocket like they do with our
competitors. We are the only company in America who offers the biweekly mortgage service
free.
You'll notice a small banking service fee to process your electronic
transfers. This is something we do not have any control over and do not profit from it.
This fee can be compared to FREE cellular phone calls on evenings and weekends. You still pay
3 to 5 cents per minute which pay for taxes and other things the phone companies have no control
over. This fee exists with all biweekly mortgage service, even our competitors who charge
homeowners over $1,000.00 up-front for the service. Actually, you're already paying this
small service fee (plus a whole lot more) right now in lost savings each and every month to your
lender.
5. CAN I DO THE SAME THING MYSELF WITHOUT YOUR SERVICES?
Almost. You can pay off your mortgage early and save money by
increasing your monthly payment and making additional principle payments, but human nature is
against us. Statistics show 97% of people who try to do this fail to do it
consistently and never save any substantial money - those aren't good odds to gamble with on
what will most likely be the biggest investment of your life. Plus, when you start making
these increased monthly payments that's where a lot of the mistakes indicated by the F.D.I.C.
occur. The 3% of America who have the self discipline, and resources, to make increased
monthly payments have a 50/50 chance of losing a lot of their savings due to errors in loan
amortization, interest compounding, index and margin calculations, etc.
Our free service includes AUDITING your mortgage to track your savings
and catch possible lender mistakes. To have an outside company audit your mortgage can cost
$100 to $150 per year and is critical since F.D.I.C. estimates errors occur in nearly every other
mortgage with the average mistake costing the homeowner over $1,500.00. Below is an article
that emphasizes the seriousness of this fact:
ATTORNEY GENERAL OF NEW YORK
- After ordering the nations largest mortgage lender
to refund $150 Million dollars in overcharges; "We dug deeper and deeper and found that
this system of overcharging is virtually universal. It runs across the entire mortgage
lending industry."
THE HERALD
- "Lender holds principle payment; About
four months ago, my wife and I decided to start making extra payments on our mortgage. We
were shocked when we realized the lender held these checks more than 60 days before applying them
to our loan."
6. I CONTACTED MY MORTGAGE LENDER AND THEY
SAID THEY WOULD NOT ACCEPT ELECTRONIC BIWEEKLY PAYMENTS, SO HOW CAN YOU DO IT?
Your mortgage doesn't actually change to a biweekly mortgage
because that would require refinancing (which involves new appraisals, surveys, inspections, titles
verification, financial statements, etc.) and a cost of several thousand dollars. Rather than
the homeowner budgeting a full payment once per month, they'll budget a half payment every two
weeks. We restructure your mortgage onto a biweekly "schedule" through electronic
transfers to give you the same savings and benefits of paying your mortgage biweekly without the
cost of refinancing or changing your existing mortgage agreement with your lender. This
reduces your loan amount much quicker than a "monthly schedule" and builds your home
equity 300% faster.
Funds are forwarded in the form of a check which is verified
each month. This creates no problems with your lender and also provides a paper trail which
can be used in case of a lender miscalculation.
7. I'M ON A TIGHT BUDGET, ALWAYS
PAYING MY BILLS AT THE LAST POSSIBLE MINUTE, CAN I STILL ENJOY THESE SAVINGS?
Absolutely. In fact, you'll find "biweekly"
payments much easier to budget than "monthly" payments. It might take a little
getting used to at first, but the benefits and savings you'll enjoy make it well worth it.
The
National Council of Savings Institutions
says "biweekly payments are 'pro-consumer'
because they equal the paycheck flow." Since biweekly payments correspond to America's
paydays, it makes mortgage payments much easier for homeowners who are on a tight budget or have a
difficult time saving money.
If your budget is so tight that you commonly mail checks
before you have the available funds in your account, knowing the check will not be presented for a
few days, you can still take advantage of the biweekly mortgage savings. Asking your bank for
"overdraft protection" will allow your biweekly transfer to occur even if you deposit the
funds a few days later.
8. WHAT EFFECT WILL YOUR SERVICE
HAVE ON MY ABILITY TO DEDUCT INTEREST PAYMENTS ON MY TAXES?
Many people are led to believe it's bad to pay off their home
early because they will lose the tax write-off. This couldn't be further from the
truth. In reality, it gives you added income. For example, if you're in a 25% tax
bracket and you write-off $10,000.00 in home interest payments, you save $2,500 off your
taxes. That's a $10,000 expenditure to save $2,500. On the other hand , if you owned
your home and didn't pay $10,000 in interest payments, you would have to pay $2,500 in taxes on
this money, but you end up with $7,500 in spendable income.
It's a fact that most Americans sell their homes after about
7 years. It's also a fact that you can make monthly mortgage payments for 7 years and still
not have enough equity in your home to pay a realtor to sell it.
By tripling the accumulation of home equity, you'll have
additional money at your disposal to pay for Education, Vacations, a new Car or Boat, Retirement,
etc. You'll be able to deduct these interest payments where you normally wouldn't be able to
if you took out a separate loan for such items.
You also have the ability to dramatically upgrade the quality
of your home you live in by building equity 300% faster and transferring this extra equity into a
more expensive home if you desire.
