Ex-Convict behind bars again with Mortgage Fraud Conviction
Sunday, 14 January 2007
Guilty plea in fraud probe The final defendant indicted in a mortgage-fraud scheme that ravaged an Aurora neighborhood with foreclosures pleaded guilty in federal court Wednesday. Torrence James, a former federal prisoner who became a Colorado mortgage broker, told U.S. District Court Judge Edward Nottingham that he used false information to obtain home loans for unqualified buyers. He also admitted withdrawing $300,000 from proceeds generated by fraudulent home sales. In an agreement with prosecutors, James pleaded guilty to one count of wire fraud and one count of money laundering. He also told the judge "it's a possibility" he would cooperate with the government to seek leniency.
Good credit can attract a bad deal More mortgage fraud scammers are targeting area, and an FBI team is targeting them...The scam artist walks away with the difference between the loan amount and the price paid for the home when, at closing, he represents himself as a consultant, remodeler or other service provider. Money is directed to him or through companies controlled by him... The straw buyer scam and other types of mortgage fraud have become so popular locally that the FBI's Houston division has formed a unit dedicated solely to fighting mortgage fraud...Though no one can give a precise figure, experts say many Houston-area homes are being lost to foreclosure because of mortgage fraud. "This is an epidemic that will come to roost in the Houston housing market," said Zugheri, president of Houston-based First Houston Mortgage Ltd.
Lenders should be regulated and help protect borrowers best interests
Sunday, 07 January 2007
Lenders don't have to warn you about unsuitable loans It still comes as a surprise to many borrowers: Although mortgage lenders and brokers often take care to line them up with loans that best suit their financial interests, there is no legal requirement that they do so. At least at the moment.
Mortgage brokers tighten rules on loan officers
Until this month, virtually anyone could work in Washington as a loan officer for a mortgage broker — even convicted felons whose job gave them access to borrowers' most sensitive financial information.But a new day has dawned, and it's mortgage brokers who pushed for the change.
Masked mortgages - Mayor dupes banks and consumers in scam
Monday, 11 December 2006
With the housing boom over, its dark side is coming to light, including fraud. Government data show more criminals – and more consumers – lied to sell or buy expensive homes.
Pam Houchen, the former mayor of Huntington Beach who helped dupe lenders and borrowers in a real estate scam, is a good example of a national phenomenon. The local scheme contained an element common to other cases nationwide: people tricking banks and consumers out of their money. Such shenanigans, which fall under the umbrella of mortgage fraud, ballooned as the housing market heated up, according to government data and industry experts.
Wrongful evictions can turn homeowners into victims Because mortgage fraud is such a widespread problem in poor communities, it's likely that a lot more people will wind up in Hughes' position. At least anecdotally, this fraud disproportionately affects African Americans and Hispanics, said Cara Smith, a spokeswoman for the Illinois attorney general's office.Among other things, the Mortgage Rescue Fraud Act, which takes effect Jan. 1, requires that the "rescuers" provide a written contract that shows the home is being sold. Rescuers must also make a determination that the homeowner has the reasonable ability to make rental payments and buy the home back.
Insurance Company Seeks Declaratory Judgment that it is not obligated to Defend Beazer Homes in Fraudulent Home Sales A class action lawsuit has been filed in the Southern District Court of Indiana against Beazer Homes Investment Corporation, Inc. Hanover Insurance Company seeks a declaration that the it is not obligated or required to defend and indemnify Beazer Homes as an insurer because of Beazer's alleged fraudulent activity.
Shopping for a Mortgage? How to Recognize Mortgage Fraud
Saturday, 02 December 2006
Mortgage Financing: Signs Of Predatory Lending If you're shopping for a home loan, you can save thousands of dollars by being aware of predatory lending practices, in which you're charged too much for your loan or are forced to buy services you don't really need. You can protect yourself by learning to recognize the signs of predatory lending. The Center for Responsible Lending lists seven specific warning signs that consumers should be aware of when applying for a mortgage.
FBI tracking down suspect in mortgage fraud scheme
Tuesday, 21 November 2006
FBI: FRAUD SUSPECT AT LARGE, CONSIDERED DANGEROUS Concord man is considered armed and dangerous today after he fled from authorities on Friday following a recent federal indictment accusing him of creating a mortgage fraud scheme that took at least $13 million from lenders.
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