Posts tagged as:

mortgage fraud

Mortgage Crisis to be Investigated by the US Government

Chairman Towns’ Statement on Committee Investigation into Mortgage Crisis

Washington, DC – Chairman Edolphus “Ed” Towns (D-NY) today made the following statement on the House Oversight and Government Reform Committee’s investigation into the role of mortgage lenders in the financial services crisis and the economic recession.
“The actions of mortgage lenders contributing to the foreclosure and financial [...]

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New Homebuyer Program Already Seeing Signs of Mortgage Fraud

While government officials said many suspect claims could turn out to be simple errors, the report found examples of claimants who already owned homes or had not yet bought one. Some 582 taxpayers were under 18 years old — as young as 4. Of the 1.4 million people who have claimed nearly $10 billion in [...]

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Do Loan Servicers Really Prefer Foreclosures?

At the start of the foreclosure crises, personal finance experts urged struggling homeowners to contact their lenders if they started to fall behind on their mortgages. The lenders want to do everything they can, homeowners were told, to avoid a foreclosure.
Now, the experts aren’t so sure that’s the case.

Consumers who have jumped through a frustrating [...]

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Loan Karma: Feds bust 41 people for mortgage fraud scheme

31 people were arrested yesterday for mortgage fraud in the states of New York, Pennsylvania, Ohio and North Carolina. Federal prosecutors announced charges against 41 lenders, lawyers and others in the real estate industry.
U.S. Attorney Preet Bharara said in a statement that he found it “especially alarming” that lawyers, loan officers and mortgage brokers treated [...]

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Turning the tables on the bankers

Particularly mind boggling are mortgage servicers who plunge ahead with foreclosure filings, and then, when called on it my activist groups, say they have no power to stop the proceedings since they don’t own the real estate!
Now it appears the legal system may slam the brakes on this runaway corporate train wreck.
A pending decision in [...]

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Predatory-lending lawsuits on the rise

NEW YORK (CNNMoney.com) — During the housing boom, mortgage lenders were doling out the dough, giving loans to people who could never have qualified before.
Now, homeowners and government officials are increasingly taking these institutions to court, alleging unfair and predatory practices. While many of these suits are still winding their way through the legal system, [...]

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Customer DIS-Service: The Unspoken Reason for the Continued Collapse of the U.S. Housing Market

If it’s this hard for a housing counselor, what is the poor homeowner supposed to do? “Call a nonprofit, HUD-approved housing counselor,” say all the government brochures and broadcast public service announcements. But housing counseling agencies like ours cannot possibly handle the flood of calls for help we receive on a daily basis. Thousands of [...]

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Bail denied for California mortgage fraud suspect

SACRAMENTO, California—A federal judge has denied bail for a 28-year-old Sacramento man who was returned to California after an international manhunt.
Garret Griffith Gililland III remains behind bars after pleading not guilty to 24 charges alleging he participated in a $100 million mortgage fraud ring.
Gililland had requested bail, even though authorities said he fled the country [...]

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SENIOR LOAN OFFICER SENTENCED IN MORTGAGE FRAUD SCHEME

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Winston Thomas, age 43, of New Carrollton, Maryland today to 37 months in prison, followed by three years of supervised release, for failure to file federal tax returns and for conspiracy to commit wire fraud in connection with a scheme in which he and his [...]

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Federal Government and State AG’s continue to take aim at mortgage fraud

“A clear lesson of this financial crisis is that American consumers need better protection against fraud,” said Treasury Secretary Tim Geithner. “And while we will prosecute anyone who violated the law, going forward we will not wait for problems to peak before we respond. The Obama Administration is acting preemptively, across federal agencies and alongside [...]

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Minister sentenced to prison for mortgage fraud

EAST ST. LOUIS, Ill. – A federal judge in East St. Louis has ordered a southwestern Illinois minister to spend four years in federal prison and repay $142,000 in a mortgage fraud case.
The government says he made fraudulent transactions to get a loan on a home in an exclusive Maryville neighborhood. His wrongdoing helped him [...]

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Feds, 10 States Join to Fight Mortgage Fraud

10 states’ top prosecutors, 4 federal agencies form task force to combat mortgage fraud
Ten state attorneys general and four federal agencies are forming a task force to combat mortgage fraud.
Washington state Attorney General Rob McKenna issued a statement Monday saying targets of the enforcement effort include equity skimming, bogus foreclosure rescue, straw purchases and unethical [...]

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Brothers, facing foreclosure, sue broker, attorney

Now, the Fusaro sons might lose the homes Umberto worked so hard to buy.
The sons, Carmine, 46, and Biagio, 37, are suing their mortgage broker and the attorney who helped him for what they say were predatory lending practices, practices that led the Fusaros to refinance or take out loans every year from 2001 to [...]

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Is California Rep. Laura Richardson a house flipper or fraudster?

This story just came out in the LA Times in regards to U.S. Rep. Laura Richardson’s rundown Sacramento house. The story explains the uncleanliness of the home, yard and that neighbors of the congresswoman were complaining.
The thing that stood out to me in this article is not the messy home, but is the possible mortgage and [...]

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FBI arrests police officer, alleges mortgage fraud

Looks like the FBI doesn’t mess around when it comes to sworn officers of the law and lying on mortgage applications (see story below). I understand it is breaking the law, but I think that if everyone was actually arrested for doing this, then we would have millions of people going to prison.
I have personally reviewed [...]

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Nevada Attorney General Announces Mortgage Fraud Strike Force

From the Nevada Attorney General, Press Release April 7, 2009
Carson City Attorney General Catherine Cortez Masto warns as the mortgage crisis continues to unfold, record-breaking home foreclosures will be experienced and many homeowners will be forced to make tough choices.
Nevada is number one in the nation for foreclosures, with one filing for every 70 households. [...]

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Federal Government and State Governments Get Serious About Mortgage Scams

By Moe Bedard
NECN.com featured a video news release this morning making it very clear that the federal and state governments will be taking aggressive action against fraudulent loan modification firms. Treasury Secretary Timothy Geithner directly addressed the federal government’s position indicating “…we will aggressively pursue individuals involved in mortgage rescue scams.” Both the Massachusetts Attorney [...]

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Woman Claims Fraud To Delay Foreclosure. Yes, An Attorney Can Help!

There is a lot of misinformation in regards to foreclosure defense and loan modifications propagating the media these days. The confusion, crooks and lack of lender help has left many homeowners on Main Street paralyzed in making what would seem like a rational decision.
Many homeowners and consumers are facing situations that are not only placing their [...]

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Financial Fraud Is Focus of Attack by Prosecutors

I am sure that many of these Wall Street financial fraudsters were not thinking about spending the rest of thier lives in a 8×8 prison cell for ripping off Main Street to the tune of billions of dollars. I guess going from a penthouse to a concrete house with 25 to life will give you some time to think [...]

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Testimony Urging Passage of Foreclosure Moratorium Where Financial Institution Fraud Occurred

By Robert Gnaizda
No efforts by the banking industry, by the federal regulators or Secretary of the Treasury Paulson will protect the vast majority of those who live from paycheck-to paycheck from foreclosure. Hope Now’s failures are a classic example of the failure of voluntary action without the threat of effective action via either class action [...]

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US Attorney – Countrywide Home Loan Employee Arrested For Selling IDs of Loan Customers

LAWFUEL – Legal Newswire – Two men were arrested today on charges related to the illegal access of computers containing personal identification information of Countrywide Home Loan customers and the illegal sale of the data, announced Salvador Hernandez, Assistant Director in Charge of the FBI in Los Angeles, and United States Attorney Thomas P. O’Brien.
Rene [...]

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The person asking the questions of the borrower is the first line of defense in a system designed to prevent fraud, period.

Submitted by LoanWorkout.org Reader Rick
You know as well as I do, the majority of people who are now underwater with their loans were all encouraged to go for it by the RE agent AND the Loan Officer. Why??? Because the RE agent and LO would get a commission for loaning out someone else’s money!
The person [...]

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Your Loan Documents May be the Secret Key to Obtaining a Loan Modification

Homeowners Warning: Beware of new scams using this as a tool to fight lenders by scammers and out of work mortgage brokers everywhere!!! This post is from early 2008 and the times have changed folks. Yes, it can work and help, but when used with a lawyer who can properly represent you.
I have studied and [...]

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House representatives argue that new Federal funds are needed to defend homeowners against foreclosure

Amen!
It finally looks like members of our congress finally realize that the Hope Line, AKA 995-Hope, operated by Neighborhood Works, is not a cure all for distressed homeowners.
In fact, many who call the Hope Line are in need of legal assistance. HUD trained counselors who operate these phone lines, do not have the legal savy or mortgage skills to [...]

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The Consumer Continues to be Mislead and Swindled = Business as Usual in America

Consumers do not have a chance in America. This country is ran by greedy snake oil salesman who peddle their wares in just about every imagineable form of commodity and service.
The Great American Swindle has been going on for ions folks.
We are just now in the “Great American Homeowner Swindle” phase. These snake oil salesman [...]

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Fighting mortgage disservice

Late-fee profits
Some say one problem is that mortgage servicers make their money from late fees and other penalties charged to borrowers.
“There’s a built-in incentive for the servicing industry to really rip people off,” contends Richard Gaudreau, a Salem attorney who specializes in consumer bankruptcy law. “If they can throw your payment into a suspense account [...]

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You have to jail the source. Wall Street, then the Banks/Lenders, then the brokers and maybe some consumers

Reader Contributed – Chris the Mortgage Broker - In response to this post
I’m a broker and let me lend a little light on who should go to jail first. And yes, JacMac is right; you will be attack for your comments before the day is over. Get ready
You have to jail the source. Wall [...]

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Moe is Looking for Experienced Underwriters to Assist in Mortgage Fraud and Predatory Lending Cases

The Loan Safe Advocacy Group is looking for seasoned underwriters with a minimum of 5 years or more experience to assist as a mortgage fraud investigator and in predatory lending investigations.
This unit will be operated by Moe and Poppy will be the lead fraud investigator.
You will assist in forensic loan document, mortgage broker disclosure, appraisal and [...]

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Mortgage brokers are still committing fraud & submitting bad loans = Business as usual

By Poppy (30 year mortgage industry veteran/senior underwriter)
It has been a long, difficult and contentious day….between the Brokers, AE’s and Processors, none of whom appear to know that there are two “g’s” let alone a “t” in mortgage. It leaves one not sure whether to be so angry as to find them all and pound some [...]

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Can a Mortgage Professional be a Victim of Predatory Lending? The Answer Will Suprise You!

Don’t think for one second that predatory lending just affects lower income and minority borrowers. It affects everyone and no one is immune from the scammers and fraudsters. Even an industry professional who is an account executive for Chase Bank can become a victim.
As I mentioned in earlier posts. I founded this website for the [...]

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Another Victim of Predatory Lending

I have made a couple of posts lately in regards to predatory lending lately and the calls I have been getting have been quite disturbing to say the least.
I spoke with an elderly client last night who has a home in Northern California and has owned it for over 20 years. Apparently just this last year [...]

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