Sub-Prime Mortgages (Predatory Lending) Still Being Marketed

I received an e-mail from a listener about an offer that he received. Now keep in mind, he has a 6.5% 30 year fixed mortgage. This is a good note. However, he called the number on the marketing piece because it sounded like a good deal. This what the note said:

Veterans's Savings Program
You DESERVE the lowest possible payment!
Recent purchase or refinance, OK! (Ask about Cash-Out Options!)
NO APPRAISAL! NOCREDIT QUALIFYING! NO HASSLE!
NO PAYMENTS UNTIL OCTOBER!
YES, WE WILL REPAIR YOUR ESCROW ACCOUNT AND REFUND YOUR CURRENT ESCROW TO YOU!!
NO OUT OF POCKET COST TO YOU!
CALL IF RATE IS HIGHER THAN 5.%

*CALL US TODAY AND SPEAK TO A VA LOAN SPECIALIST!

This has all of the qualities of a sub-prime loan. Plus, they were recommended that he go from a fixed note to an ARM where the interest rate changes in 3 years.

The listener asked the "loan specilist" (read:salesperson) if they had anything dealings with sub-prime loans. He actually denied that they even exercise such practice or suggest such loan to any one.

Predatory lending continues.......