Terre Haute, Ind. (April 10, 2007 ) --
Today, Indiana Secretary of State Todd Rokita (
http://www.in.gov/sos/)
announced that his Securities Division enforcement staff
is taking action against Terre Haute-based Extreme Investments,
Inc., Hoosier Title Incorporated, and two real estate buyers
for falsifying information on 23 mortgage loan applications
for properties totaling more than $1.4 million.
The administrative complaint served today indicated that
buyers Rick Burnett and Kris Sommerville may have falsified
information on loans for multiple investment properties
in the Terre Haute area, by indicating that the properties
would be used as primary residences.
Extreme Investments of Terre Haute, Inc. d/b/a Affordable
Lending of Terre Haute served as the loan broker, and
Hoosier Title Incorporated served as the closing settlement
agent in all 23 loan closings.
The Complaint alleges that several originators and closing
agents assisted the buyers in falsifying information to
improve chances of the loans' approval, and asks that
the Securities Commissioner permanently bar Affordable
Lending, Eric Wuestefeld, Nicholas Olsen, and Joshua Rigdon
from engaging as brokers and originators in Indiana.
"Falsifying information to obtain a loan is fraud,
and it is a practice we simply will not tolerate from
buyers, brokers, originators, closing agents, or any other
parties involved in the home buying process," said
Rokita. "Our foreclosure rate in Indiana is one of
the highest in the nation, but we can work to reverse
that trend by educating home buyers and by protecting
the industry from damaging, fraudulent behavior."
According to RealtyTrac, an comprehensive, online mortgage
marketplace, Indiana consistently ranks in the top 10
states nationally for mortgage foreclosures, and is currently
ranked sixth.
The Indiana Loan Broker Act charges the Indiana Secretary
of State with licensing and regulating loan brokers, and
with enforcing The Act's prohibition against fraud directly
or indirectly connected with a loan broker services contract.
SOURCE: Office of the Indiana Secretary of State
