CA Brokers Offer Aid to CapCom Victims

Members of the California Association of Mortgage Brokers are offering to help consumers who were victimized as a result of the failure of the Sacramento, Calif.-based wholesaler Capitol Commerce Mortgage.These originators are offering to waive their professional fees or revenue to consumers who lost their rate locks when the wholesaler suddenly shut its doors. These consumers are now dealing with reapplying for their loans at higher interest rates. By waiving broker and lender fees, applicants could see average savings of up to $3,000-$5,000 per family, the CAMB said. Consumers must contact the CAMB toll-free at 800-253-2262 for more details and a referral to a participating broker. "We are committed to helping all of the individuals and families whose lives have been turned upside down because of this closure," said CAMB president Leon Huntting. "With our brokers and lenders stepping up to the plate to help these families, our assistance will hopefully lessen the pain of these stranded consumers." It is rumored that one of the problems Capitol Commerce faced was an unhedged pipeline in an environment of rapidly rising interest rates.