Michigan has banned several people from mortgage lending in the state because of alleged mortgage fraud activity.
Michigan’s residential mortgage legislation grants the commissioner of the Office of Financial and Insurance Services the authority to ban, after notice and an opportunity for a hearing, an individual from participating in Michigan’s consumer finance industry if the commissioner is of the opinion that the individual has engaged in fraud. A person who violates an order of prohibition issued by the state, either by acting as an employee, agent, or control person of a licensee or registrant, or employing a banned person is subject to fines and penalties.
Examples of fraudulent and unscrupulous activity that have resulted in the state issuing an order prohibiting individuals and companies from working in the state include equity stripping “foreclosure rescue” schemes; flipping of property involving inflated property values and undisclosed non-arms length transactions; providing borrower down payment funds, without disclosing such assistance to the lender or investor; creation of fictitious loan application supporting documentation, such as W-2’s, verifications of deposits, and verifications of employment; occupancy fraud; converting loan proceeds or other funds to one’s own use; and being convicted of a felony involving fraud, dishonesty, or breach or trust.
An order was issued by the department preventing Ronnie Duke of Fenton from working in the mortgage industry.
Joseph Saad of Dearborn Heights was also banned upon a finding that he had engaged in fraud in connection with at least 28 residential mortgage loans.
An order was issued against Ronald Lester Ribant of Southfield based on several felony convictions involving fraud, dishonesty, and breach of trust.
Robert Clyde Troub of Portland was banned based upon felony conviction involving fraud, dishonesty, and breach of trust.
Chad Eugene Willis of Detroit was prohibited from working in mortgage lending because of several felony convictions involving fraud, dishonesty, and breach of trust. Willis allegedly operated an unlicensed mortgage company known as The Mortgage Highway, LLC.
“Protecting Michigan’s consumers from unscrupulous practices is a top priority of the Governor Granholm administration, and [the office] continues to use all regulatory tools at its disposal to target and take down bad actors in the mortgage industry,” Linda A. Watters, commissioner of the department, said in a written statement. “Simply put: consumers need to know who to avoid doing business with.”
Marvin R. Fried of West Bloomfield, the only banned individual MortgageDaily.com could reach for a comment, emphasized the consent order he signed does not admit to a finding that grounds existed for his ouster from Michigan’s residential mortgage industry. He said the state accused him of providing downpayment assistance to several borrowers without making the proper disclosures to the lender.
Fried signed a consent order banning him from working in Michigan for five years. He said he signed the order to avoid the time and expense associated with an administrative hearing.
Fried also said that he plans to relocate to another state in order to continue working in the mortgage industry.
“Again as I stated to you, I regret that I had to make this settlement with the state, but with the interests of my family, friends and business relationships, I choose to make this settlement,” he said in an e-mailed statement. “There never was any allegation of inflated appraisals or loan file or income fabrication or of any intention to defraud any of the purchasers of any of the loans in question.
“All of the property loans in question provided properties that upgraded the housing in community and turned previously foreclosed properties into very good residences for the homeowners at a very affordable price. I did not myself nor did any company I had any relationship with in any matter make any money off the sale of the properties.”
