The FBI announced yesterday that a former senior vice president of Bank of America (BOA) in Las Vegas pleaded guilty today to misapplication of bank funds in a scheme that led to over $6.4 million in losses to BOA on two business-related loans. (more…)
Freddie Mac (OTCQB: FMCC) released today its newly updated Multi-Indicator Market Index® (MiMi®), showing that the U.S. housing market continuing to stabilize at the national level for the fourth consecutive month. Thirty-eight of the 50 states, plus the District of Columbia, and 40 of the 50 metros are now showing an improving three month trend. Three additional metros entered their benchmarked stable ranges of housing activity including Buffalo, Boston and Nashville. (more…)
Carmen Johnson, age 48, of Gambrills, Maryland, was convicted this past week by a federal grand jury of conspiracy, wire fraud and making a false statement on a loan application, arising from two residential mortgage fraud schemes, according to the USDOJ.
Johnson was the owner of two credit repair firms; CJ Lending and its predecessor, Able Estate & Company. She used her companies to create false credit histories, stolen or false identity information, false documents, and false credit information in order to fraudulently obtain home loans for her clients. (more…)
The United States Department of Justice (USDOJ) said this past week that a Virginia mortgage broker and his partners in crime were each sentenced to 180 months in prison for their roles in a multi-million dollar home loan fraud scheme.
The mortgage broker’s name is Walter Alston Brown, 47, of Providence Forge, Virginia, and his co-defendants are Glen Allen, Virginia, and Cynthia Evette Brown, 53, of Philadelphia, PA. They were originally indicted in April 2013 on various charges such as FHA loan fraud, mortgage fraud, wire fraud, and tax evasion. The three were among 17 defendants charged in this case.
Here is a list of the top twenty mortgage lenders who have received complaints between the years 2011-2013. It is no surprise that the nation’s largest banks such as Bank of America, Wells Fargo and Chase would have the most complaints since they make the majority of the mortgage loans in the country.
What is interesting to note is that at numbers 4, 5 and 7 on the list, they are not mortgage companies, but credit providers and mortgage lead sellers, Experian, Equifax and Transunion. I assume that these complaints are a result of them working hat in hand with mortgage lenders as consumer credit and lead providers to all lenders. (more…)
The United States Department of Justice (USDOJ) along with the California Attorney General announced yesterday that a Las Vegas man was sentenced to five years in prison by U.S. District Judge Troy L. Nunley in connection with a nationwide multi-million dollar mortgage relief scam. The defendant, Ray Jan Kornfeld, 59, was also ordered to pay over $3 million in restitution to victims of the scheme. (more…)
Jersey City Mortgage Broker Pleads Guilty to Money Laundering for His Role in a $1.2 Million Mortgage Fraud Scheme
The New Jersey Attorney General, John J. Hoffman announced last week that a Jersey City mortgage broker who owned a property management company, pleaded guilty in a fraud scheme in connection with four loans totaling approximately $1,219,860.
Brian Lyles, 43, of Jersey City, the owner of BKL Property Management, LLC, admitted that he laundered the cash in a scam where he worked with others to falsify mortgage applications in order to obtain loans from lenders for unqualified home buyers for the purchase of properties in Jersey City at inflated prices, according to the attorney general. (more…)
The FBI announced last week that the former owner of Summit Capital Mortgage, and four other people were sentenced to prison for a Arizona mortgage fraud scheme where the defendants made nearly $1.5 million in commissions based on high-end bad loans. (more…)
The FBI announced earlier this week that Joshua Clymer, 28, of San Francisco, was sentenced to two years in prison for a mortgage fraud scheme. Clymer previously pleaded guilty to commit mail and wire fraud as part of a plea agreement. (more…)
The Consumer Financial Protection Bureau (CFPB) on Tuesday ordered NewDay Financial, LLC to pay a $2 million civil money penalty. NewDay had misrepresented a veterans’ organization’s endorsement and operated a scheme to pay illegal kickbacks for client referrals. (more…)
The Federal Trade Commission (FTC) recently announced that a Utah loan modification firm, Danielson Law Group, LLC, operated by Philip J Danielson, had settled charges which claimed that they broke the law by ripping off homeowners in order to have them pay thousands of dollars for worthless mortgage relief services. (more…)
The United States Department of Justice (USDOJ) announced this week that military service members will receive over $123 million for unlawful foreclosures under the Servicemembers Civil Relief Act (SCRA). 952 service members and their co-borrowers are eligible to receive compensation from the settlement. (more…)
Ringleader, Mortgage Broker, And Title Agent Sentenced In Multi-Million Dollar Mortgage Fraud Scheme
The United States Department of Justice (USDOJ) announced last week that three people from Florida in connection with a multi-million dollar mortgage fraud ring were given long prison sentences. The three defendants were the ring leader, James Fidel Sotolongo (49, Port Orange), title agent Stephanie Musselwhite (52, Daytona Beach), and mortgage broker Christopher Mencis (53, Longwood). (more…)
The Consumer Financial Protection Bureau (CFPB) released a report yesterday listing the top consumer complaints for reverse mortgages in order to educate the public. According to the CFPB report, consumers are frustrated with their mortgage terms, servicer runarounds, and foreclosure problems. (more…)
The FBI announced on Friday that the owner and operator of Pacific Realty, Yeon Han, 53, of McLean, Virginia, was sentenced to 30 months in prison; followed by three years of supervised release for her participation in mortgage fraud and tax fraud conspiracies. She was also ordered to pay $1,022,143.95 in restitution to the victims of here crimes. (more…)