Rudco Under Investigation!

FURTHER MORE TO THIS ARTICLE NCR HAVE LAID DOWN SOME RULES AS TO RUDCO'S BUSINESS PRACTICES SEE http://www.ncr.org.za/press_release/Rudco.pdf

Rudco, Rudco, Rudco, oh what are you people doing! Firstly, never screw with peoples money it will always bite you in the ass! Secondly, trusting a company with what is most likely going to be your single biggest investment in life into a company that has no SOLID financial backing, SILLY!

As you may or may not have heard, RUDCO are now under investigation. Much like their predecessors FINBOND who themselves were given a good scolding years back when they decided to charge people for bond origination services, when this clearly went against all credit regulators and laws...

According to Moneyweb "On Thursday the NCR announced that it had found Rudco had contravened a number of provisions of the National Credit Act (NCA), and its predecessor, the Usury Act. One of the major contraventions of the law was Rudco's policy to accept payments for loans before they had even been granted.".

I don't want to be the one to say this, but, I TOLD YOU SO! It was inevitable! Unfortunately though, there are those people who have now found themselves in a bit of a predicament should Rudco's doors close down.

If you find yourself in a sticky spot or you need some Free Financial Advice, please don't hesitate to contact Wizard Home Loans on 012 341 2223.

WizardMan Out!

The GUERILLA HANDBOOK for MORTGAGE ORIGINATORS

BY NOW YOU MUST BE AS CONFUSED AS THE MAN NEXT DOOR. MAYBE YOU HAVE BEEN DRINKING THIS TEA.

"This Morning when we drove down the road, we saw 7 garages open on to the street each with a new Mortgage Originator or better known as a Bond Originator offering a new service,where do they come from?"...a confused Lena Lefty

When I received this mail I knew we needed to do some explaining.

Firstly, there are 100's of new bond originators on the market and everyday a new one seems to pop up and offer some FABULOUS new deal , but there is a reality out there. There are the guys who founded this industry with years of seriously great experience and there are the OTHERS who feed off the rest.

Then there are the estate agents who have also set up their own deals with banks and of course there are the BANKS themselves who also want a slice of the action - CONFUSED??? I'm not surprised.

So who are the real guys and whose next in line etc?

Well the original guys on the block with most experience all starting around about the same time are Wizard, Mortgage SA, Bettabond, BondChoice, Quantro.

These guys have the savvy know how and service ethics that set the stage for an awesome business platform.

Then came the rest. When they started , who knows , some are great, some pathetic and each one is a out there to offer you something.

Its either, 5% payback, commission back, No registration fees, Free this and free that, discounted attorney fees, blah, blah, blah, blah .

The truth is someone is taking a slice out of the banks commission paid. That means attorneys are receiving "commission" against discounted fees, Estate agents are getting fees, the client is getting fees and the bond originator will probably be bankkrupt after 6 months.

If you want fees and discounts versus great service well thats your call. ME, I want it done, done properly, no pain and having the financing a magical moment in my life.

So whose the plethora of BO's (Thats Bond Originator not Body odour) out there..here are a few names for you

Kredibond, Ubuntu, Mymortgage, Bond Experts, Bond Aid(Hi bob geldof), Bondfocus, Savebond, HomeloanXpress, BondOption, Bondplus, Bondrelax, Cashrefund, Mybond, Yourbond, Ourbond, Webond, Bondi beachHomeys, JamesB, Bestbond, Bondshell, Dimension Homeloans, Equity, Homeforum, The Bond Operation, Mortgage Impact, Givemeyourmoneyquickly and more and more and more

And of course you have SAHomeloans and Now RUDCO hmmm Slightly different kettles of fish!!!

Well many of these guys sub contract or aggregate through the bigger boys and what I hope happens is that the new National Credit Act starts clearing out the shysters so that mr and mrs Joe Public end up getting what they deserve......

JUST DARN GOOD SERVICE - something we South Africans are permanently looking for!!!!!

South African Property - June/July Market Summary

BOOM

It's been chaotic and exciting to say the least...

The last month in South Africa has been a shock to the home loans and property barons and I think it's definitely worth a nice little summary. For those of you who missed all the excitement, well, here's your chance to catchup!

To summarise it all, I'd say the 3 major impacts and stories have been the following:

The National Credit Act
Rudco Financial Services
Bank Charges

The National Credit Act

First was the property boom, prices rising, interest rates dropping then, WAM BAM, thank you MAM, here comes the National Credit Act. All of sudden, investors who were purchasing homes by the dozen every month, found out that they could no longer afford (REALLY AFFORD) anymore property. Banks started declining bonds left right and centre because people were hiding money from them and claiming they were earning R60 000 a month when there statements were only showing R20 000 worth of income.

To top it off, the interest rates went up! WHAT THE HELL! Well, it's not all bad. What it means is that the banks and financial institutes can no longer loan money to people who cannot afford it! It's going to curb credit lending which is great for the economy, LESS DEBT, plus all those people who've been hiding money from the TAX MAN, will no longer be able to do it with property unless you buy it cash. Either that or you need to start showing the banks where that money's coming from.

Wizard says, YAY to the National Credit Act!

Rudco

Now here's a story that's been causing a stir. Rudco Financial Services came out this week with a special, "The first 1000 people to sign up with Rudco get their home loans at 6% interest". Talk about a stir. It's had the home loans companies up in arms and it's got people asking ALOT of questions.

Firstly, well done to RUDCO, it's caused such a publicity STIR that I'm pretty sure they've already got their first 1000 deals signed up. The reason Rudco got everyone talking though was due to a couple of "suspect" things that bugged us.

1. Where is there financial backing coming from? Why won't they disclose it?

2. They're not registered as a financial institute!

3. What happens if they go under? What happens to their clients?

4. Offering home loans @6% gives clients the false impression that they can afford that R1 000 000.00 property. If Rudco go under, and the client needs to switch to a bank. Their interest rates are going to jump to 13%. WILL THEY STILL BE ABLE TO AFFORD IT!

All in all though, Wizard do wish Rudco the best of luck. Banks needs competition, maybe it's the first step!

SA Banks and their DAMN Bank Charges!

This is something that just pisses me off! The banks and their bank charges. Now I can understand bank charges. I understand that we have the highest ATM crime rates in Africa (or the world for that matter) and that banks need to replace all the broken ATM's. Let me tell you though that paying R15.00 for every debit order that comes off your FNB cheque account is pathetic! I also believe that paying R20.00 to draw money from an ABSA ATM vs a FNB ATM is absurd!

The banks in this country are not making it easy for people to live! They're not helping South Africans and they're not helping the MAJORITY of South Africans (underprivileged) in making this a country to want to stay in!

Read this article that STORM posted, read it carefully and you tell me what the hell the banks in this country are thinking!!!!!

http://sa-property.blogspot.com/2007/07/are-banks-charging-you-more-than-they.html

But ladies and gentlemen. Apart from that, we love this country!
You cannot say that this isn't an exciting country and an exiting time in South Africa.

Thanks again to all the readers and the input everyone has had on our BLOG over the last 3 months.

WizardMan OUT!
I'm OFF TO DULLSTROOM!

Rudco - Home Loans @ 6% - WATCH OUT!

What is Securitization and where did it originate from?

Happy Friday to all you readers out there. It's been a long a busy week for home loan and mortgage originators with all the HOOHAA of the National Credit Act. It does however look like the banks are slowly starting to get things under control again. Just to let you all know. Bank Submissions are now taking 10 - 14 days. It's no longer the 5 day turn around time we've all become accustomed to.



Anyway back to the topic of the day. RUDCO Finance Company.

Let me tell you these RUDCO boys are causing quite a stir at the moment. Take a look at the article on MoneyWeb's site: http://www.moneyweb.co.za/mw/view/mw/en/page38?oid=145005&sn=Detail&ccs_clear_cache=1#CMT_ANCHOR.

Apparently you can get your home loan now @ 6% interest. Be careful people, when a company (Rudco) claims to have financing from a external source and they're not backed by the banks or registered as a registered financial institution, those blinkers should start flapping.

Firstly: Who does Rudco get their financing from, and why are they not disclosing it.

Secondly: Rudco claim to be using the World Bank's interest rate of 5.7% (or something there about) which sounds to me like their money is coming from an international source.

Thirdly: If they go under and you have to transfer your home loan to another bank, you're going to be liable from transfer duties.

And another one: When you're qualified for a bond @ 6%, Rudco goes insolvent, you have to transfer your bond to ABSA and you're now paying interest @ 13% (HOW WILL AFFORD IT)

So my personal opinion, WATCH OUT PEOPLE!

Update:

I've been reading quite a couple of articles relating to these Rudco guys and I'm going to list them here cause I think it's something that people need to just watch out for before they switch their bonds. Consider your costs and consider the fact that Rudco Finance is not a "Fincially Registered Institution". I had a chat with the Rudco personal and they do not provide Financial advice either.

The whole point of going with someone to do your home loan is to get GOOD SOLID financial advice. This once again kind of defeats the purpose, plus you're paying RUDCO for this service. WHAT FOR?

See Car Today Rudco Discussion
See My Broadband Rudco Discussion