Mortgage Daily Logo

Mortgage Fraud Lawsuits Third Quarter 2008 Mortgage Litigation Report

Mortgage News

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Link to Story
1st American Inc. and owner Eric Otterholt Oregon Division of Finance and Corporate Securities na $26,000 in fines were suspended Portland-based 1st American Inc. and owner Eric Otterholt were ordered to cease and desist from unethical practices and failing to supervise. The action was prompted by an originator at the company who provided inaccurate loan documents that indicated more funds were available than what actually occurred. na na na www.mortgagedaily.com/OregonLicenses081408.asp
Allegiance Mortgage LLC and Brian Fallini Oregon Division of Finance and Corporate Securities na $50,000 fine A cease-and-desist order was issued against Allegiance Mortgage LLC. In addition, the mortgage broker’s lending license was revoked and the company, along with owner Brian Fallini, was fined $50,000. na na na www.mortgagedaily.com/OregonLicenses081408.asp
Countrywide Financial Corporation, Countrywide Home Loans Inc., and Countrywide Home Loans Servicing LP State of Connecticut, Attorney General and Commissioner of Banking Superior Court, Judicial District of Hartford Civil penalties of up to $100,000 per violation, up to $5,000 per violation of state consumer protection laws, restitution for the borrowers and give back ill-gotten gains. The Connecticut Attorney General alleges overcharging, mortgage fraud and poor underwriting by Countrywide. State of Connecticut v. Countrywide Financial Corp., et al. na July 28, 2008 www.mortgagedaily.com/LawsuitCountrywideCt080608.asp
Countrywide Financial Corporation, et al People of the State of California (by City of San Diego) San Diego Superior Court na San Diego accuses Countrywide of engaging in a “pattern of unlawful, fraudulent or unfair predatory real estate lending practices.” The alleged activities have left a number of the city’s residents facing foreclosure. People v. Countrywide Financial Corp., et al. na July 23, 2008 www.mortgagedaily.com/LawsuitSanDiegoCountrywide072308.asp
Countrywide Financial Corporation, et al Office of the Attorney General, State of Florida Circuit Court of the Seventeenth Judicial Circuit, Broward County na Florida Attorney General Bill McCollum announced another lawsuit against Countrywide and its legendary founder, Angelo Mozilo, claiming the company deceived borrowers into signing risky loans. “Office of the Attorney General, Department of Legal Affairs, State of Florida v. Countrywide Financial Corporation, et al No. 08 30105 03 June 30, 2008 www.mortgagedaily.com/CountrywideSale070108.asp
Countywide Home Loans, Inc. and Countrywide Financial Corp. State of Indiana Steuben County Court $15,500 per violation, plus voiding of loans and/or prepayment penalties. An investigation by Indiana’s attorney general has led to a lawsuit against Countrywide, which alleges mortgage fraud and customer deceit. Indiana v. Countrywide Financial Corp., et al. 493710-1 na www.mortgagedaily.com/LawsuitCountrywideIn082508.asp
Domestic Bank, Intervale Mortgage Corp. Office of Thrift Supervision na $1.8 million The Office of Thrift Supervision issued a Cease-and-Desist order and an Order of Assessment of a Civil Money Penalty against Domestic Bank and its mortgage lending subsidiary Intervale Mortgage Corp. “In the Matter of Domestic Bank, Cranston, Rhode Island, (OTS No. 13964) and its Subsidiaries, including Intervale Mortgage Corporation, Cranston, Rhode Island Order No.: NE-08-07 and Order No. NE-08-08 June 30, 2008 www.mortgagedaily.com/FineDomesticBank071508.asp
First Call Mortgage Company, Inc. Commissioner of Banks, Mortgage Lender & Mortgage Broker Licensing, Commonwealth of Massachusetts na na Mortgage regulators in Massachusetts have issued cease-and-desist orders against four reverse mortgage companies. Among the charges were mortgage fraud, deceptive advertising and failure to comply with reverse lending requirements. In the Matter of First Call Mortgage Company, Inc. 2008-020 na www.mortgagedaily.com/MassReverseLenders092508.asp
GRP Financial Services Corp., GRP Loan, LLC, and IndyMac Financial Services Frank Stoffels and Karen Stoffels U.S. District Court for the District of Nevada na A Nevada couple alleges that they are the victims of fraudulent lending practices by IndyMac Financial Services and a scheme to shield IndyMac from liability by transferring the fraudulent mortgage to a knowing purchaser to foreclose on the loan. Lawyers in the case allege compliance violations and seek class action certification. Stoffels v. GRP Financial Services Corp., et al. 08-cv-468 na www.mortgagedaily.com/WbskLawsuitIndymac092408.asp
IndyMac Bancorp, Inc and IndyMac Bank, F.S.B. Virgen Cedeno U.S. District Court for the Southern District of New York na A recent ruling by a federal judge in Manhattan dismissed class-wide claims against failed IndyMac Bancorp, declining to hold it liable for alleged inflated appraisals. Violations of the Real Estate Settlement Procedures Act and the Truth in Lending Act were alleged. Cedeno v. IndyMac Bancorp, Inc., et al. 06-CV-6438 na www.mortgagedaily.com/WbskLawsuitIndymac092208.asp
James C. Platts, Easy Realty Solutions Inc., Guaranteed Results Co., and Easy Realty Solutions LLC Allegheny County Court of Common Pleas Allegheny Court of Common Pleas $3.6 Million A Pennsylvania man has been ordered to release liens on more than 100 illegal second mortgages and return more than $2 million in illegal fees. James C. Platts and his companies, Easy Realty Solutions Inc., Easy Realty Solutions LLC (doing business as Fieldstone Real Estate Co.) and Guaranteed Results Company na November 15, 2007 www.mortgagedaily.com/JudgmentEasyRealty091808.asp
Mid Atlantic Capital, LLC First Franklin Financial Corporation U.S. District Court for the District of New Jersey na Mid Atlantic is accused of submitting seven fraudulent loans files for more than $2.2 million that resulted in losses of more than $1.0 million. First Franklin Financial Corp. v. Mid Atlantic Capital LLC 1:07-cv-04398-JEI-AMD September 7, 2007 www.mortgagedaily.com/ClosureMidAtlantic091908.asp
Nationstar Mortgage, LLC, et al. Mark Richter, et al. San Diego Superior Court Plaintiffs seek compensation for ruined credit, restitution for lost money and the rescission of all debt owed to Nationstar. Attorney’s fees, court costs and an award of $25,000 per plaintiff is also sought. Nationstar Mortgage LLC has been sued over allegations that one of its star branch managers prodded borrowers into bad investments, committed mortgage fraud and failed to maintain proper compliance. The company is also accused of operating without a license. Richter v. Nationstar Mortgage, LLC 37-2008-00092170-CU-BT-CTL September 22, 2008 www.mortgagedaily.com/LawsuitNationstar092908.asp
Perry United States of America na na Financial institutions ignored red flags that led to identity theft. United States v. Perry na na www.mortgagedaily.com/Technology070808.asp
Prajna Group Inc., petitioner Prajna Group Inc., petitioner U.S. Bankruptcy Court for the Western District of Kentucky na A Kentucky mortgage company that filed for bankruptcy liquidation is accused of defrauding lenders it sold loans to. In re Prajna Group, Inc., dba Liberty Mortgage Funding 08-33673 August 20, 2008 www.mortgagedaily.com/ClosureLibertyMortgage091008.asp
The Mortgage Specialists Inc Commonwealth of Massachusetts Commissioner of Banks na na In a July 31 cease-and-desist order from Massachusetts’ Commissioner of Banks, the state said an examination found The Mortgage Specialists falsified asset and income information on three residential loan transactions. In the Matter of the Commonwealth of Massachusetts Commissioner of Banks and The Mortgage Specialists Inc., Plaistow, New Hampshire No. 2008-015 July 31, 2008 www.mortgagedaily.com/MortgageSpecialistsOrder081908.asp
The Mortgage Specialists Inc., Michael Gill, Lisa Tracy, jean Duerr, and David Caillouette State of New Hampshire Banking Department na $400,000 The New Hampshire Banking Department has entered into a consent order with The Mortgage Specialists Inc. Also listed in the order were the company’s owner Michael Gill and its compliance officer Lisa Tracy. In re the Matter of: State of New Hampshire Banking Department, Petitioner, and The Mortgage Specialists Inc. Michael Gill, Lisa Tracy, jean Duerr, and David Caillouette, Respondents No.: 08-223; July 23, 2008 www.mortgagedaily.com/MortgageSpecialistsOrder081908.asp
Williams United States of America na na Financial institutions ignored red flags that led to identity theft. United States v. Williams na na www.mortgagedaily.com/Technology070808.asp

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Mortgage Servicer Portfolios

servicing news | mortgages outstanding statistics | foreclosure news   Servicing Portfolios as of 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 Residential Servicing Portfolios by Servicer Last Updated December 14, 2018...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC filings | execs | m&a | production   Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move --...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Freddie Mac Profile

Government Takes Over Fannie, Freddie Sept. 8, 2008 The government has seized control of Fannie Mae and Freddie Mac. The move -- which is likely to push mortgage rates lower and provide a sense of stability for the more than 10,000 employees at both companies -- is a...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam