Massachusetts Woman Sentenced to 25 Years in Loan Scam

The FBI announced yesterday that a Billerica, Massachusetts woman was sentenced for wire fraud charges in connection with a bogus bank guaranty program.

Diane Glatfelter, 48, was sentenced by U.S. District Judge Douglas P. Woodlock to 30 months in prison, three years of supervised release, and ordered to pay $1,575,000 in restitution. In September 2014, Glatfelter was found guilty following a five-day jury trial of four counts of wire fraud, according to the FBI press release. (more…)

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Former GMAC and Countrywide Loan Officer Sentenced to Five Years in Prison for $7 Million Mortgage Fraud

Andrew Constantinou, a former loan officer at GMAC Mortgage and Countrywide Home Loans, was sentenced today to five years in prison for his role in a mortgage fraud scheme involving more than 40 properties that caused $7 million in losses to lenders, according to U.S. Attorney Paul J. Fishman.

The FBI said that Constantinou, 58, of Unionville, Connecticut, was originally convicted by jury of all counts on April 18, 2014. He was found guilty of conspiracy to commit mail, wire, and bank fraud. (more…)

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FTC Shuts Down Nationwide Loan Modification Scam

Ever since the mortgage crisis had started in 2007, there have been many white-collar crooks coming out of the criminal woodwork who opened up loan modification and foreclosure defense chop shops in order to scam struggling homeowners down on their luck. We have reported on many of these mortgage relief schemes for the last seven years being busted and shut down, but these fraudsters seem to be a dime a dozen. When one scam is busted by federal authorities, another 10 take their place.

For example, the FTC announced this past week that they obtained court orders against 22 defendants who operated fraudulent loan modification services to American homeowners that allegedly violate the FTC Act and the Mortgage Assistance Relief Services (MARS) Rule, which bans mortgage rescue and mortgage modification services from collecting upfront fees until they receive a written loan modification offer from their mortgage servicer that the consumer deems acceptable. (more…)

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Ringleader of $7 Million Florida Loan Modification Scam Sentenced to 11 Year Prison Term

The ringleader of a Florida based $7 million loan modification scam was sentenced yesterday to 11 years in prison, and was ordered to pay $5.9 million in restitution to victims for his mortgage crimes. The convicted criminal, Jason Vitulano, 39, of Boca Raton, pleaded guilty earlier this year to mail and wire fraud charges.

Vitulano had operated various sham mortgage modification companies from 2008-2009 such as FHA All Day.com Inc., Housing Assistance Law Center Inc., and Safety Financial Corp. It was from these companies, that Vitulano directed his criminal enterprise by leading a group of hired hitman telemarketers who targeted struggling homeowners across the country. (more…)

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Two Former Illinois Bank Officials Plead Guilty To Concealing Loan Delinquencies

The FBI announced on Monday, that a former First Community Bank and Trust officer, and a former director in Will County, Illinois have pleaded guilty to federal fraud charges in a scheme to hide losses from the bank’s loan portfolio in order to report it was in better shape than it actually was. The defendants conspired to conceal delinquent loan payments to the bank on behalf of two clients whose loans totaled, added up to approximately $2.8 million, and caused the bank to suffer more than $1.1 million in losses.  (more…)

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FHA Announces New Loan Limits for 2015 Will Remain the Same

The Federal Housing Administration (FHA) recently announced, that the new schedule of loan limits for 2015 will remain the same as the 2014 levels. These limits also include the FHA-insured reverse mortgages, which will remain unchanged in 2015.

The current standard loan limit for low-cost housing areas will also remain unchanged at $271,050, and high cost areas such as San Francisco; Washington, D.C.; New York, and some areas in Los Angeles, the FHA loan limit will remain at $625,500. (more…)

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Should bankruptcy judges reduce mortgage principal balances? (Source: OC Housing News) – Ever since the Great Housing Bubble began to deflate, everyone incorrectly identified foreclosure as a problem because foreclosure pushes people out of the house the bank...

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FHFA Announces 2015 Conforming Loan Limits

(Source: FHFA) Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2015 will remain at $417,000 for one-unit properties in most of the country.   The loan limits are established under the terms of the Housing and Economic Recovery Act of 2008 (HERA) and are calculated each year.   (more…)

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California Attorney Found Guilty in $13 Million Loan Modification Fraud Scheme

Following a three-week trial in San Diego federal court, an Oceanside, California attorney who was indicted in 2012 for Dean chandler attorneyoperating an $13 million loan modification scam, was found guilty of eight felonies on Thursday. According to the USDOJ, the jury returned guilty verdicts against Dean Gregory Chandler, the former president, chief Executive officer and attorney for the company; and Michael Eccles, a manager in the telemarketing call center.

The convicted attorney, Dean G. Chandler had operated a Oceanside-based law firm, 1st American Law Center (1ALC) from 2009-2012 in order to defraud struggling homeowners to pay thousands of dollars to his sham firm by deceptively boasting about their false successes, and lying to them  guarantying their mortgages would be modified if they hired the firm. (more…)

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Wells Fargo Launches Private Student Loan Modification Program

Program will assist financially distressed private student loan customers

(Source: Wells Fargo) SAN FRANCISCO – As the nation’s largest private student lender among U.S. banks, Wells Fargo today announced its new private student loan modification program (PSLM) to assist customers experiencing financial hardship or distress.

Through the program, Wells Fargo private student loan customers experiencing a hardship will have their financial situation reviewed on an individual case-by-case basis to determine eligibility for a short- or long-term loan modification, as appropriate. If eligible, Wells Fargo will lower the customer’s interest rate to achieve a student loan payment that is determined to be affordable based on the customer’s income level. (more…)

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Sal Pane: NYC’s Ebola cleanup czar is a con artist and convicted loan modification fraudster

(Source: BussFeed) – When New York City officials needed someone to disinfect the apartment of its first Ebola patient, they found someone who seemed to be made for the job. Sal Pane boasted decades of experience cleaning up extremely dangerous materials, including anthrax in 2001. Ebola was his time to shine. “This is our Michael Jordan moment. The fourth quarter,” he told USA Today. “When everyone else says no, we show up.” (more…)

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