NetBank Inc. warned investors it would delay issuing financials because of $13 million in conforming mortgage loans with irregularities.
The Atlanta-based company announced today it would delay the reporting of its third quarter financials, noting it had previously expected to release those numbers today.
Citing $13 million in conforming mortgages, NetBank said the “loans appear to have some irregularities stemming from the appraisal and underwriting process.”
The online financial services company said it expects to have the completed third quarter earnings statement, reflecting potential losses under generally accepted accounting principles, by Nov. 14.
This isn’t NetBank’s first brush with mortgage fraud.
In 2002 MortgageDaily.com reported about an Atlanta fraud network where RBMG, a company acquired by NetBank, was among a small group of companies stung by mortgage broker Claude Andrew Blevins Jr. who, along with Renee Antoinette Meeks, was accused in Criminal Information filings of creating and submitting nearly $15 million in fraud loans.
Another NetBank subsidiary, Meritage Mortgage Corp., was allegedly defrauded by an Ohio mortgage broker, Todd H. Charske. The FBI claimed Charske, along with Gregory B. Romer, operated a flipping scheme and submitted the bad loans to Meritage.
When his company, Dayton-based Kemper Financial Inc., was raided, Charske reportedly fled on foot right into the arms of arresting law enforcement personnel — carrying 328 grams of cocaine in a small plastic bucket.
