Homeowners, research independent mortgage companies contacting you years later
Draper & Kramer shut down in 2024, so who is sending out the home warranty spam letters?
Marketing material is never shy. It can’t be. It needs to make sales, and mortgage companies need to make a profit from loans. However, when an independent mortgage company is overloading your mailbox with home warranty packages, it can become suspicious. If the company specializes in mortgages, what’s up with the nonstop letters about home warranties?
Recommended Read: “Avoid Domestic & General for extended warranty services ~ Before purchasing an extended appliance warranty, review Better Business Bureau complaints”
The sporadic letters were the first sign to make me raise an eyebrow over the past couple of years. I shredded them and went about my day. Then, they started appearing more often. But it wasn’t until I called the Call Center about a “deadline” letter with a check included that it became more than obvious that something was wrong. Who sends you a check to cash before a warranty is even purchased?
Another red flag.
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Second red flag? The Call Center automated message only had one option: “Sign up for home warranty coverage.” There was no prompt to cease communication or to reach a Customer Service rep. But I’m a child of the ‘80s who knows all too well to keep punching the zero button — or pressing it on a smartphone. (Rotary phones and landlines were much better for stress relief, especially when you could slam down the receiver.)
Recommended Read: “Two expenses to let the mortgage company pay ... if you’re not a frequent saver”
Third red flag? After I repeatedly pressed the operator button to talk to a human being, the first rep to answer the call could be heard cracking up laughing into the phone and saying occasional curse words before hanging up. The next rep wasn’t much better even though she seemed more prepared for an incoming call. When I asked her why I kept getting these home warranty letters from the original lender although my mortgage was sold through the secondary mortgage market (purchased by a larger bank) several years ago, her response was, “I don’t know why that happens. Men must be writing those letters.”
Record scratch. I guess sexism is OK at these Call Centers, or it's OK because it's not on a recorded line. I hung up. I should have never called because this confirmed I was an active recipient of their letters.
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I immediately performed a Google search for my prior independent lender and found out the company (Draper & Kramer) closed down in 2024. So how was the company that originated my mortgage in the primary mortgage market offering home warranties years after my loan had been sold? Who’s in charge of a Draper & Kramer home warranty now? And how many people think they’re getting a Draper & Kramer home warranty if the business is closed? Even more confusing, why is the website active?
I filed a complaint with the Better Business Bureau to find out if Draper & Kramer still has the home warranty department even after no longer completing mortgage loans. The response? Draper & Kramer had absolutely no clue what I was talking about.
Draper and Kramer permanently ceased operations in 2024 and is no longer originating or servicing residential mortgage loans. While Draper and Kramer, Incorporated remains an active company, it is not involved in the residential mortgage industry and does not send mortgage-related solicitations, home warranty notices, or marketing communications of the type described in your complaint.
-Better Business Bureau reply from Draper & Kramer
So why was I getting letters that clearly stated: “Secured by ** Draper & Kramer MTG Corp” but there was never a mailing address on it? The phone number to secure a Draper & Kramer home warranty was all over the place, including a notice that the “regular hours” included being open on Juneteenth — as though that was appealing to potential customers. Although I definitely wasn’t going to contact them again during the upcoming federal holiday, how was I going to put a stop to what appeared to be scammers exploiting the names of former lenders, servicers or mortgage companies to appear legitimate?