Fly-By Fraud

March 23, 2009


A subprime lender that was seized by the Office of Thrift Supervision last year realized another hit of half a million dollars due to mortgage fraud, as reported by MortgageDaily.com.

IndyMac Federal Bank FSB lost $500,000 in a mortgage fraud scheme that involved an appraiser, closing agent and the borrower. Two loans were secured with the lender for $885,000 with fabricated employment, income and residence information.

The borrower was a straw buyer who signed on the dotted line in exchange for a round-trip first-class airfare from Brooklyn to Houston, car service to the closing and back to the airport, and $10,000 in cash. Officials said she never lived in the house or made a payment on the loans.

Read story at MortgageDaily.com