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Last Updated Friday, September 26, 2008 10:00 PM Texas Time
 

September 26, 2008


HUD Gets Hoodwinked
Fifteen people, 12 that have worked for or are employees of the federal government have been charged with defrauding the U.S. Department of Housing and Urban Development.




Mass. Cracks Down on Reverse Lenders
Mortgage regulators in Massachusetts have issued cease-and-desist orders against four reverse mortgage companies. Among the charges were mortgage fraud, deceptive advertising and failure to comply with reverse lending requirements.




Arizona Mortgage Fraud Complaints Rise 25%
As mortgage fraud takes hold in Arizona, the Commissioner of the Arizona Dept. of Real Estate said his department has launched more than 1,500 investigations. The department is also fielding more complaints, 25% more. The department that monitors and regulates the mortgage originators, banks and escrow agents has seen a 79 % increase.




Convicted Attorney Disbarred
A “flipping” fraud scheme that cost banks $3.5 million is costing a Cincinnati attorney his license.




Two More Sentenced in South Fla. Minority Scheme
A gang of fraudsters taking advantage of poor minorities in South Fla. continues to be corralled by law enforcement to face justice. They convinced homeowners to take out loans for home improvements and left them with payments they couldn’t afford and little home improvements. About 130 bogus loans were submitted to Argent Mortgage Co.




September 25, 2008


Lender Compliancy Support for FACT Act
As of November 1, 2008, lenders are required to be compliant the Fair and Accurate Credit Transactions Act regulations for identifying red flags for fraud prevention. Interthinx has developed a detection tool for measuring and scoring fraud risk that addresses the new red flags.




Mortgage Co. Owner Pleads Guilty
A Virginia mortgage company owner admitted to a fraud scheme that defrauded lenders out of more than $2.5 million. Along with several others, he used falsified documents to illegally obtain financing on properties with inflated appraised values. If convicted, Gohar Mirza, 29, owner of E-Star Lending faces up to 20 years in prison.




Virginia Siblings Plead Guilty
Two brothers have admitted to their roles in a multimillion-dollar mortgage fraud scheme and pleaded guilty to conspiring to commit bank fraud. From April 2004 to Sept. 2006, they had falsified several mortgage loan documents.

Mohammed Rababeh, 29, and Ahmed Rababeh, 31, along with Randolph Baltimore, 50, to overstate Baltimore’s income and omit liabilities so he would qualify for properties the brothers were selling. The obtained more than $2 million in mortgage loans, amounting to a loss of about $1 million for the lenders. Baltimore received $27,000 for each property he “bought.”




Borrowers Allege Closing Documents Forged
A Nevada couple alleges that they are the victims of fraudulent lending practices by IndyMac Financial Services and a scheme to shield IndyMac from liability by transferring the fraudulent mortgage to a knowing purchaser to foreclose on the loan. Lawyers in the case allege compliance violations and seek class action certification.




Arrests Continue in Multimillion-Dollar Fraud
A multi-agency investigation of Argent Mortgage has lead officials to the door of another man who worked for Advanced Mortgage Solutions in Florida. The scheme preyed on mostly minority borrowers in poor areas of the state.




Guilty Plea in Oahu Fraud Scheme
One of the six accused of preying on two families that were in danger of losing their homes on Oahu to foreclosure has pleaded guilty to participating in a mortgage fraud scheme.




Alleged Fraudster on the Run
An “unlicensed mortgage broker” from California is on the lam, as law enforcement search from coast-to-coast. A 27-year-old man is accused of participating in one of the nation’s largest mortgage fraud schemes.




September 24, 2008


Plea Deal in ‘Rent-to-Own’ Scheme
A Washington man used straw buyers to purchase homes for those with bad credit in a scheme that was presented as a “rent-to-own” program. After being apprehended in Mexico, he was brought back to the U.S. and charged last June.




New Fla. Fraud Fund Requested
Even though Florida is one of the states overwrought with mortgage fraud it is one of only three states that lack funding to help its fraud victims. A senior organization is calling for the state to help out.




Miami Dade Task Force Good Example
U.S. House of Representatives gave a majority vote to create a national federal mortgage fraud task force that will be modeled after Miami Dade’s. The bill was introduced by Congressman Kendrick Meek of Florida and is being taking to the U.S. Senate for a vote by Senator Bill Nelson of Florida.




September 23, 2008


Zwego Sentenced in Latest Scheme
A real estate investment company owner has found himself spending 13 years in federal prison. Ten years in federal prison was for the mortgage fraud and the judge tacked on three additional years because he violated probation.




WaMu Hit Hard with Flipping Fraud
One family financed 43 mortgages with Washington Mutual in a year’s time. Officials from the Center of Responsible Lending are calling it a flipping scheme that has cost WaMu millions of dollars as six of the properties are in default or foreclosure.




September 22, 2008


Broker/Closing Agent Pleads Guilty in $1.2 Million Scam
John Mohan, 38, stole money from buyers and lenders in a scheme that he worked as both the mortgage broker and closing agent. He faces up to 20 years in federal prison and an undetermined amount of fines. Sentencing is set for Dec. 19.




FHA Moves to Prevent 'Buy and Bail'
The Department of Housing and Urban Development is taking steps to thwart borrowers who commit mortgage fraud in order to buy another home at today's discounted prices then let their current residence fall into foreclosure.




Aftermath of Inflated Appraisal Schemes
Property values have been damaged as a result of mortgage fraud that involved falsely inflating the appraised value. Home values are teetering as the mortgage industry shakes off the shroud of fraud and uncovers its vulnerabilities.




Six Accused of Preying on Borrowers in Default
Six people have named in an indictment charged with taking advantage of two families that live on Oahu in Hawaii. The homeowners were told to sell their homes to straw buyers and that they would be allowed to remain living in the house.











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