United First Financial (Scam Warning)
I was asked about this company by a friend in the U.S. They are a mortgage acceleration company. Further, they sell their software product (actually - web app access) through independent agents - most of whom are clients who purchase the option to become "agents" for a nominal fee. Most of these people are not financially savvy, or they wouldn't have become clients in the first place. Here's why:
United First Financial (UFF) espouses the Money Merge Account (MMA) strategy to pay off your mortgage. This involves the homeowner to take out a Home Equity Line of Credit (HELOC - or ALOC) against the equity they do have in the home. The first $3500 USD goes to UFF. No joke. Their fee is $3500, and paid right from this line of credit. The selling agent shares in a $2500 commission with those "up-stream". Again, $2500 commission on a $3500 product.
The homeowner then rolls all chequing and savings account money into the HELOC. Cheques are deposited to, and written from, the HELOC.
The homeowner inputs all the relevant information into the software regarding the mortgage, plus household income and expenses. By logging in once per month, the homeowner is told by "algorythms" how to move money between the HELOC and the 1st mortgage, in such a way as the mortgage can be paid off "in less than half the time", "with little to no change to their day-to-day spending habits and without increasing their minimum required monthly mortgage payments".
Anyone with half a brain should be able to see through statements like that.
These people are now focusing on growth on Canada. If you see anyone promoting this, or worse, if a friend or family member has already been sucked in, there is good information on the web about why this is a scam:
Google search:
http://www.google.com/search?source=ig& ... gle+Search
Excellent thread in a US deals site:
http://www.fatwallet.com/forums/finance/741118
Another good discussion:
http://www.friendsinbusiness.com/board1 ... ead/122068
An open challenge to UFF agents, as yet unanswered:
http://www.friendsinbusiness.com/board1 ... ead/129143
I'll leave the mathematical proofs for later. Everywhere a scam warning has been issued, UFF agents or "people who know somebody using an MMA" arrive quickly, defending the product. We can get into the math then, but here's a common challenge they've yet to answer:
[QUOTE]$5000 income per month (paid $2500 on the 15th, $2500 on the 30th).
$1500 per month bills, due on the 25th.
$200k mortgage, 6%, 30 years, $1199.10, due on the 1st of each month. 7.5% heloc
$5000 in the bank, 3% interest.
Show me the movements that payoff the mortgage and HELOC ASAP with MMA, I'll payoff the mortgage ASAP. If you are right, you'll pay it off first. If I am, I'll pay it off first.[/QUOTE]
United First Financial (UFF) espouses the Money Merge Account (MMA) strategy to pay off your mortgage. This involves the homeowner to take out a Home Equity Line of Credit (HELOC - or ALOC) against the equity they do have in the home. The first $3500 USD goes to UFF. No joke. Their fee is $3500, and paid right from this line of credit. The selling agent shares in a $2500 commission with those "up-stream". Again, $2500 commission on a $3500 product.
The homeowner then rolls all chequing and savings account money into the HELOC. Cheques are deposited to, and written from, the HELOC.
The homeowner inputs all the relevant information into the software regarding the mortgage, plus household income and expenses. By logging in once per month, the homeowner is told by "algorythms" how to move money between the HELOC and the 1st mortgage, in such a way as the mortgage can be paid off "in less than half the time", "with little to no change to their day-to-day spending habits and without increasing their minimum required monthly mortgage payments".
Anyone with half a brain should be able to see through statements like that.
These people are now focusing on growth on Canada. If you see anyone promoting this, or worse, if a friend or family member has already been sucked in, there is good information on the web about why this is a scam:
Google search:
http://www.google.com/search?source=ig& ... gle+Search
Excellent thread in a US deals site:
http://www.fatwallet.com/forums/finance/741118
Another good discussion:
http://www.friendsinbusiness.com/board1 ... ead/122068
An open challenge to UFF agents, as yet unanswered:
http://www.friendsinbusiness.com/board1 ... ead/129143
I'll leave the mathematical proofs for later. Everywhere a scam warning has been issued, UFF agents or "people who know somebody using an MMA" arrive quickly, defending the product. We can get into the math then, but here's a common challenge they've yet to answer:
[QUOTE]$5000 income per month (paid $2500 on the 15th, $2500 on the 30th).
$1500 per month bills, due on the 25th.
$200k mortgage, 6%, 30 years, $1199.10, due on the 1st of each month. 7.5% heloc
$5000 in the bank, 3% interest.
Show me the movements that payoff the mortgage and HELOC ASAP with MMA, I'll payoff the mortgage ASAP. If you are right, you'll pay it off first. If I am, I'll pay it off first.[/QUOTE]