I was contacted by a personal friend about a company out of California that said they could refinance her house for 3%, all they needed was $2500, could I look into it for her. Well, she sent me their paperwork, and this was not a mortgage company or a bank, despite the name "American Mortgage Group", apparently they are a law firm out of California.

I got her permission to call, and did, here's a few interesting things I found:

1. I asked him why their message said she was "approved" for a 3% mortgage, when she hadn't even given them a letter of authorization. Their answer, they use the same underwritting guidelines as her lender, so they are confident she will be approved. Now mind you, she hasn't sent them anything, so they don't even know who the investor on her loan is.

2. I asked when the $2500 was due, turns out up-front. When I asked him about conforming to MARS, he said that it depended on what state you are in. I was under the impression California is still in the United States, and thus has to follow the FTC.

Has anyone else run into these Bozos? I'd love to hear the stories, because they almost ripped off a friend of mine, and that is just unacceptable.

Yes, I will ask her to report this to the appropriate authorities.