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Description

This company offers loan & mortgage services.


BBB Accreditation

A BBB Accredited Business since

BBB has determined that Redwood Mortgage Corp. meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.


Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that raised the rating for Redwood Mortgage Corp. include:

  • Length of time business has been operating
  • Complaint volume filed with BBB for business of this size
  • Response to 1 complaint(s) filed against business
  • Resolution of complaint(s) filed against business


Customer Complaints Summary Read complaint details

1 complaint closed with BBB in last 3 years | 0 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 0
Billing/Collection Issues 0
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 1
Total Closed Complaints 1

Customer Reviews Summary Read customer reviews

0 Customer Reviews on Redwood Mortgage Corp.
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 0
Total Customer Reviews 0

Additional Information

BBB file opened: January 01, 1981 Business started: 11/01/1979 Business started locally: 11/01/1979
Licensing, Bonding or Registration

This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

Bureau of Real Estate
1515 Clay St Ste 702, Oakland CA 94612
http://www2.dre.ca.gov/PublicASP/pplinfo.asp?License_id=
Phone Number: (510) 622-2552

Business Management
Mr. Michael Burwell, President Mr. Ted Fischer, Vice President
Contact Information
Principal: Mr. Michael Burwell, President
Number of Employees

12

Business Category

Mortgage Brokers Mortgage Lender Real Estate - Commercial Real Estate Consultants Real Estate Loans


Additional Locations

  • 1825 S. Grant Street Suite 250

    San Mateo, CA 94402 (800) 659-6593

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BBB Customer Review Rating plus BBB Rating Overview


BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.
Details

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.

Complaint Detail(s)

6/9/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Plans for liquidation of investment account, frozen during economic downturn, and now no longer frozen, are illusory and unsatisfactory. On Oct 23, 2007, I invested $45,000 in Redwood Mortgage Investors VIII (RMI VIII). With re-invested earnings, by Oct 31, 2009, the value was $49,773.75. On Nov 27, 2009, the company made the first of many "Capital Account Adjustments", reducing the account by $4769.99. Around that same time, they 'froze' the account and advised investors that no account liquidations could be paid until further notice. They continued thereafter, quarterly or annually, to "adjust" the account downwards and, although there continued to be very modest 'earnings' reported, the account value is now $29,648.82, with the 'loss' in value primarily due to the "adjustments" taken between 2010 and now. The General Partner,******** *******, has now come up with a liquidation plan that only allows liquidations to be taken over 5 years or longer at 5% of the account balance quarterly, or up to 25% quarterly until liquidated BUT with a 10% penalty on each payment. According to the law of diminishing returns, with a quarterly diminishing return based upon the diminishing account balance, the funds will never be fully liquidated. The adjustments made over these past 3 years have allowed the General Partner to continue a life-style as if the economy had not been depressed, at the expense of the limited partners. While I realize that liquidation of the accounts could result in the eventual demise of the business, may businesses failed during the downturn. Why should this one be allowed to flourish at the expense of MY nest egg? I am not asking for reimbursement of the $21,387.26 that has been arbitrarily and unilaterally taken from my investment account, but I want the balance that is left back in my own pocket and not in Mr. *******'s pocket any longer. And I don't want it paid to me in increasingly smaller bits and pieces over the rest of my life, but now - all of it.

Desired Settlement: Full liquidation of my account ($29,648.82).

Business Response: Initial Business Response /* (1000, 9, 2014/02/27) */ We received the above-referenced complaint dated January 14, 2014 setting forth the complainant's demand for the liquidation of their entire capital account in Redwood Mortgage Investors VIII (''RMI VIII''). As noted in their letter, RMI VIII suspended all capital withdrawals during the economic downturn of 2009. Notice of the suspension, together with the authority and reasoning upon which it was based, was provided to the complainant in a letter to limited partners dated March 16, 2009 (copy enclosed). We also acknowledge the capital account and earnings adjustments that were made between 2009 and 2012 due in part to the reduction in value of RMI VIII's loan portfolio and to losses incurred in the operation of the partnership during a period when it was running at a fiscal deficit. On December 31, 2013 we sent a notice to the limited partners that as of January 1, 2014 RMI VIII would begin accepting capital liquidation requests again on a limited basis (copy enclosed). The withdrawal provisions of RMI VIII that are detailed in the prospectus (copy enclosed) have been in place, essentially unchanged, since the partnership began operations in 1993. These withdrawal provisions are detailed in Article 8, of the Limited Partnership Agreement that begins on page 81 of the prospectus. All capital liquidation payments made to requesting limited partners are also expressly subject to the availability of sufficient cash flow generated in the ordinary course of RMI VIII's business (See Article 8, Section 8.1(f) of the Limited Partnership Agreement). In addition the risks related to this type of investment were thoroughly outlined in the RISK FACTORS section beginning on page 8 of the prospectus that was presented to the complainants at the time of their investment and in the Subscription Agreement that was signed by them (copy enclosed). We are mindful of the frustrations described in the complaint; however, the withdrawal limitations and the possibility of a liquidation suspension were amply disclosed in our prospectus when the complainants made their investment. Moreover, it would be unfair to make an exception to one limited partner while adhering to the withdrawal provisions outlined in the prospectus as it relates to all other limited partners. The ******* may submit a liquidation request at any time by completing the Liquidation Request From that can be found on our web site www.redwoodmortgageinvestors.com and their account will be included in future liquidation payment scheduling. Sincerely, ******* R. *******, President Redwood Mortgage Corp., General Partner cc: ******** ******* Enc Consumer Response /* (3000, 16, 2014/04/08) */ I have been away and have just seen this. I cannot seem to get to the reply on the click. It is after March 10. Ten days seems an unreasonably short time, given that most people take 2 week vacations! Please don't close this before I've seen the reply. Can you resend in any form? **** ******* Business Response /* (4000, 20, 2014/05/15) */ received a letter however consumer didn't state what middle ground they wanted. Consumer Response /* (4200, 24, 2014/05/16) */ (The consumer indicated he/she DID NOT accept the response from the business.) Basically, Redwood Investors response is that they can do this because they can; that the terms of their adhesion contract that investors are required to sign specifies their right to exercise the law of diminishing returns to a request for liquidation. If this were clear to investors at the outset, no one would have invested with them. I'm sure no one understood that they could NEVER change their mind about the investment, no matter how badly it went. They have not proposed a resolution at all.


Customer Review(s)

The customer review(s) below are un-filtered. These positive and negative reviews are not used in the calculation of the BBB Rating. If you wish to file a complaint and request a resolution to your issue please click here. This customer review section is not BBBs complaint resolution system. Customer Reviews are the subjective opinion of the individual who posted the review and not of Better Business Bureau. A customer review is not posted on a business if a BBB complaint on the same issue(s) is also filed. BBB cannot guarantee the accuracy of any customer review and is not responsible for the content of any customer review. Public comments are not customer reviews.

Customer Reviews Summary

0 Customer Reviews on Redwood Mortgage Corp.
Positive Experience (0 reviews)
Neutral Experience (0 reviews)
Negative Experience (0 reviews)