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DALLAS, October 16 /PRNewswire/ State actions topped the latest mortgage news from MortgageDaily.com, the dominant source of online news for the mortgage industry.
Connecticut regulators filed a lawsuit alleging CTX Mortgage Co. violated state law, according to an announcement.
CTX met with employees of Charter Oak Lending Group at a 2004 conference where it was recruiting employees, the state alleged. CTX paid bonuses and other benefits for additional recruitment and competitive data.
CTX allegedly mailed postcards to Charter Oak’s customers — announcing the agents now worked for CTX. (https://www.mortgagedaily.com/LawsuitCtx100906.asp)
A convicted California mortgage broker was sentenced to 10 years in prison. He allegedly ran a scheme where he bought distressed properties for cash in the names of family members — simultaneously selling the properties to straw buyers for prices as much as $100,000 over the value, prosecutors said. (https://www.mortgagedaily.com/FraudBennet101206.asp)
FDIC regional analysts in San Francisco and New York noted some deterioration in subprime ARM performance — a trend that may reflect “payment shock” for some ARM borrowers.
Notices of defaults filed against California borrowers surged 67 percent relative to year-ago second quarter levels, the FDIC said. In New York, previous research shows the foreclosure rate on subprime ARMs is increasing to 2.11 percent in the second quarter 2006, well above the national average, although considerably lower than the state’s previous high in 1999. (https://www.mortgagedaily.com/SubprimeArms100906.asp)
Bear Stearns Residential Mortgage Corp. has agreed to buy the subprime wholesale assets of troubled ECC Capital Corp., according to an announcement.
ECC said it is considering alternatives such as the “sale of remaining operating assets, the residual interests and associated servicing rights or, in the case of the residuals, collection of remaining cash flows through 2010.” (https://www.mortgagedaily.com/BearAcquisition101106.asp)
Massachusetts’ Division of Banks closed two licensed mortgage brokerages as result of an ongoing sweep, according to an announcement.
An on-site inspection revealed one company had submitted applications to lenders where stated gross monthly income differed significantly from the gross income from other pertinent documentation. (https://www.mortgagedaily.com/MassLicenseOrders101006.asp)
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