Identity Theft

Metro Financial Inc – Loan Scam Alert

Comments 22 Comments

Be careful out there borrowers. There's another loan scam on the horizon today called Metro Financial Inc. We think they're a renamed version of the Hampton Group Services scam that we posted about in December.  Here are the details:

Scam Lender Name: Metro Financial Inc.
Phone Number: (888) 314-3419
Fax Number: (888) 314-3419
Address: The scammer used Credit.com's street address, available on our website. 550 15th Street – San Francisco, CA 94103
Contact Names: Unknown
Fake Insurance Company Name: Unknown

Remember, NEVER wire transfer funds to someone you don't know. No authentic lender would ever ask you to wire transfer funds for an insurance payment or deposit. If you do send the money, you'll never hear from the scammers again and will not be able to get your money back.

In the meantime, stay safe and keep us posted about any loan scam offers you encounter. We'll keep on putting the word out there and trying to keep consumers safe from these rip-offs.

Emily PetersCredit.com's personal finance expert and former TransUnion credit expert. Emily writes about credit reports, credit cards, loans and personal finance as the CreditBloggers.com moderator.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

  • Kevin

    I was contacted by them and what really concerned me was that they were not willing to send any paperwork to me prior to signing or receiving funds to review and they wanted a $600 insurance payment. I asked if they could just remove the $600 from the loan disbursement (which is what I thought would be standard and they said that this is not possible.) The person I spoke with tried not to answer any specific questions about the loan but wanted me to just make the Insurance payment so that I could receive the funds. This sounded a little fishy, so I did a lookup of the company and found a couple of companies with a similar name. I contacted them and they were not the same company.

  • Joshua M

    Hampton Group Services is the what the complaint is about no Metro Financial Services Inc. Is an exceptional company. The writer who complianed is committing slander and defamation against my company. Obviously there are more than on Metro Financial Inc. She needs to fix the title and advertise her complaint with the real name of her problem Hampton Group Services

  • annette gomez

    Home Services of America Inc
    1400 E Cooley Dr
    Colton, CA 92324
    9095031380
    This company has taken $2500 from our family to do a loan modification, only to find out our home is going into foreclosure oct. 28th 2009.

  • Angela

    I was contacted by MetroFinance via mail about a mortgage rate reduction thru FHA. They did not want any money. They stated on the phone, once I called, that it was mandadted by FHA for a mortgage payment reduction on my mortage. I called my loan officer to find out if it is legit or not. I will keep you posted

  • dbmanager

    I was contacted by them too i called and recieved bunch of forms to sign still reviewing docs and checking around if it is legit business. any feedback is appreciated.

  • Jamie Dawson

    Same here, I have only signed the first form. I am also concerned that it is legit. Ant information would be appreciated.

  • alicia

    I got something from them too but different phone number and address.
    Metro finance
    FHA rate reduction department
    29870 middlebelt rd, suite 100
    farmington hills, mi 48334
    866.638.7633
    Please let me know if they are ligit.

  • sam

    Anyone find out if Metro Finance is legit? I have also received the documents?

  • http://www.metrofinance.net/ Andrew Frazier

    Hi,
    A few important things about us (Metro Finance):
    1. We are a legitimate mortgage business located in Farmington Hills, MI. We are NOT affiliated with Metro Financial.
    2. We are a lender, not a broker.
    3. Most, if not all, of the the negative information on the internet about us is either competitive slander and/or confusion regarding our business name. Our business is wrapped around helping you with your home affordability. We only win if you win.
    4. We offer a streamline FHA product to existing FHA loan holders, and the offer in that letter is really as good as it sounds. Please do your research on the following federal government site http://www.fha.gov/ to acquire accurate information. Those forms that we have requested you to sign are required by FHA. We aren’t excited about them either, however, the housing market challenges have put significant strain on these government programs and the reaction to that strain has been “more forms”. This was primarily done in attempt to counteract the significant increase in fraud over the last few years.
    5. If anyone else has any specific questions, please feel free to contact us at (866)-METRO-33. We are real, we are legitimate, and we look forward to speaking with you. Ask for any FHA counselor to assist you.
    PS: Please excuse our dust with our website. We are in the process of deploying a new site. Unfortunately, we have been behind the times with our Internet presence, however, we have recently made a significant commitment to remediate that position.
    -Andrew M. Frazier
    http://www.metrofinance.net/
    http://www.linkedin.com/in/drewfrazier/

  • Richard

    “We offer a streamline FHA product”
    “We only win if you win.”
    How about not being so vague if you’re legit.
    If the FHA is offering these reductions, what do we need you for?
    Tell us exactly what you do, why we need you and what you get out of it.
    And don’t tell us to call your number again.
    If you’re not scamming and you’ve got nothing to hide, lay it all out here & now and clear your name.

  • http://www.metrofinance.net/ Andrew Frazier

    Richard,
    Thanks for your candidness. I’ll try my best to answer your questions here.
    1. The Federal Housing Administration (FHA) has a number of programs that lenders (that’s us) can provide to borrowers (that’s you). One of those programs is called a streamline refinance. You can read about a the streamline refinance option on the following website – http://www.hud.gov/offices/hsg/sfh/buying/streamli.cfm. Basically it is a refinance with reduced documentation, because the loan is already insured by the FHA, which makes it easier to re-insure.
    2. You need us (the lender), because the Federal Housing Administration is a governing body that administers rules/regulations/programs that we (the lenders) can apply to financial transactions. The FHA isn’t a bank, they don’t conduct any financial transactions, they just regulate them. We (the lender) conduct the financial transaction associated with obtaining a mortgage, and we do it per the FHA guidelines. We (the lender) actually loan you (the borrower) the money for the mortgage. See http://en.wikipedia.org/wiki/Mortgage for additional information regarding “Mortgage Lender” and note the difference between a lender and a broker http://en.wikipedia.org/wiki/Mortgage_broker.
    3. I’m not certain what you think we are hiding. There isn’t anything to hide. We know that Mortgage transactions can be scary, primarily because for most people purchasing a home is the largest financial transaction they will every experience. We do our best to simplify the confusion for our customers and reduce the “scariness”. When you boil it down to the basics, it’s very easy to determine if there is any shadiness in a mortgage transaction. Here are the four basic components: Loan Amount, Term, Interest Rate, and Closing Costs. As a borrower, if you pay close attention to those four components and make sure that you always acquire a clear explanation regarding the values, you can flush out any greed or extravagant behavior.
    Hopefully the explicit points above help.
    And contrary to your request, I’m going to post our number again – it’s 866-METRO-33 or 866-638-7633. We are real lender with real people who work hard every day to provide a real service to existing and potential home owners. We would love to hear from anyone who is interested in determining if they qualify for any of the new FHA programs that exist to help reduce their monthly mortgage expense or take advantage of the low priced housing market. Given the current economic storm that we face, we can all use a reduction in expenses.
    Regards,
    -Andrew M. Frazier

  • http://www.metrofinance.net/ Andrew Frazier

    FYI: The linking system of this site does not exclude the “.” if the link ends a sentence, so please use the following re-posts of the links above:
    http://www.hud.gov/offices/hsg/sfh/buying/streamli.cfm
    http://en.wikipedia.org/wiki/Mortgage
    http://en.wikipedia.org/wiki/Mortgage_broker
    Thanks.
    -Andrew

  • http://www.creditbloggers.com/2009/01/metro-financial-inc-loan-scam-alert.html Morris Davis

    If Metro can save customers money with a program under FHA, then why do other loan institutions not do the same thing and keep the customer’s business? When I contacted my mortgage company, the only thing that they would do was to offer refinancing, which would involve a lot of closing costs etc. I am tempted, but concerned.
    Sincerely,
    Ray

  • http://www.metrofinance.net/ Andrew Frazier

    Great question. I’ll try my best to answer it.
    Regarding your current mortgage company:
    Your current mortgage company is most likely FHA approved and could offer you the same program. However, it’s all about fiscal motivation. Your current mortgage company is servicing your loan. That means that, provided that you continue to make your payments, they are contracted via the mortgage that have with you to generate an rate of return of X% on the money that they loaned you. The higher that X is, the more money they make. They are betting that you don’t refinance. From their perspective, your mortgage with them is an investment. If you invest your money, don’t you look for the highest rate of return? Well, that’s exactly what they are doing. They would only be motivated to refinance your loan to a lower rate if they didn’t have any other investment opportunities (i.e., the origination of a loan with another borrower) to generate the same, or better, rate of return then what they have with you right now. Again, from their perspective, if you refinance your home with another lender, like us, all that would do is release the money that was allocated to your loan so that it may be reapplied against another investment. Every financial institution has a finite money supply. The success of that financial institution is insuring that the money supply is generating the highest yield possible. Most institutions have sophisticated analytical procedures and systems to help them decide the best way to make money with their money supply. So, again, if they aren’t offering you a refinance, then that’s because it doesn’t make any financial sense for them to do so. That is the situation for all borrowers, and why lenders like us have an opportunity to service you as a customer.
    How the FHA is involved:
    The FHA insures these home loans against default. Similar, but not exactly the same, to the way that the FDIC insures bank deposits for consumers. If the loan goes into default, the lender can make a claim and recoup their investment against the FHA fund. It’s a government guarantee for the lender and very appealing as it mitigates the risk of loss. Again, your current mortgage company is sitting on a lucrative, low risk investment. Why would they change it?
    The bottom line:
    We are financially motivated to offer this program to you. Yes, I know, it’s terrible, but we are a business, and like any business we are here to make money. However, we have structured the program as to benefit both you (the borrower) and us. Basically, we cover all the costs. So, you reduce your interest rate at no-cost. Additionally, most of the time, we can complete the entire process within 3 weeks (I think we actually completed the entire process once in 24 hours, but this had some very specific conditions and shouldn’t be expected).
    Hopefully this helps. Please let me know if you have any other questions or concerns.
    -Andrew M. Frazier

  • Ray

    Has anybody found out any concret information about Metro Finance?

  • Tom
  • Kevin

    I received a letter from a company Metro Finance in Michigan. I was extremely hesitant and concerned when I got this letter. At first glance it seemed very deceiving. When I called, the person that I spoke told me that I would be getting a “free rate reduction”. He said that it wasn’t going to cost me anything. Well, this only added to my skepticism. I also did some online research and found a few negative posts. However, after reading a few, something didn’t sound right. Either the person who posted was an idiot, or something truly was not right. I decided to give the program a try anyway. As a consumer I know that 1- unless you’re giving money, 2- being asked to transfer money, or something as such, there are security measures in place to protect me against fraud and identity theft. Once I signed the authorization form and sent it in, it took about 2 weeks before everything was completed. I had them send me all of their so called final documents that I would be signing in order to receive the rate reduction. I took the information to a local attorney, and also my accountant. Much to my surprise, everything they told me was true and correct. There were no closing costs added to my loan balance and my interest rate was decreased which saved me $118 a month. The terms of the new FHA mortgage were the exact same as I currently had, but with a lower interest rate and lower payment.
    I know that we all think that if something sounds to good to be true it usually is. I dont know why i decided to try it, but i am extremely glad i did. My mortgage payment is now $118 a month cheaper and i was able to skip a month. I waited to write this review till everything was done, final and complete. I couldn’t be happier with my new mortgage, my new interest rate, and my new LOWER PAYMENT. Thank you Metro Finance.

  • Lisa

    I RECEIVED A LETTER FROM METRO FINANCE. AFTER DOING SOME RESEARCH I DECIDED TO GIVE THE COMPANY A TRY. EVERYTHING WORKED OUT EXACTLY LIKE THEY TOLD ME. I HAVE A LOWER INTEREST RATE AND THERE WAS NO HASSLE AND IT DIDN’T COST ME ANYTHING.

  • Ronald
  • http://profile.typepad.com/kippauls moneyman

    sounds great.. But, No closing cost. Is this put in the loan? Are we putting even less down on principle and paying more in interest? Either the interest rate goes up or we are paying less in priciple. yes?

  • amber

    does anyone know if metro financial and investment service is a legit company?

  • richard godley

    I have been trying to get a 100,000 loan from Metro Financial service of Arlington Texas. I have sent them over 12,000 which is supposed to be 10% fee for the loan plus broker commissions and have not received one dime. They keep asking for more money. I was stupid to get this far in with them. What am I to do? I do have a loan contract. I probably will never see any money plus a refund is a joke. Any advise? Richard Godley

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