Mortgage Industry Insider – Weekly insight from MortgageDaily.com
DALLAS, October 30 /PRNewswire/ Mortgage fraud may surpass $2 billion this year, according to coverage from MortgageDaily.com, the dominant source of online news for the mortgage industry.
At least 60,000 fraudulent loans will close this year at a loss of $2.4 billion, Jacqueline Dreyer told attendees of a session at last week’s annual Mortgage Bankers Association conference. The figure could balloon to $5.4 billion when the cost of related expenses is considered. (https://www.mortgagedaily.com/FraudMba102706.asp)
Georgia’s Department of Banking and Finance yanked the license of Advent Mortgage Inc.’s owner. He was cited by the state for “making misrepresentations in loan files submitted to mortgage lenders,” among other things.
City Capital Mortgage’s owner entered into a consent decree with Georgia to settle allegations he “made false statements or misrepresented material facts to a lender” and “transacted business with an unlicensed and unregistered” mortgage broker, regulators said in the statement. (https://www.mortgagedaily.com/GeorgiaLicenses102406.asp)
A Kansas mortgage originator and her office manager plead guilty for their part in a $25 million mortgage fraud case involving mortgage broker Associated Capital. The two “would do anything required to complete a loan closing,” a U.S. District Attorney said in a statement. (https://www.mortgagedaily.com/FraudAssociatedCapital102606.asp)
Third quarter earnings and mortgage production plunged at First Horizon National Corp. The Tennessee-based company reported funding $6.4 billion during the period, off $1.1 billion from the prior quarter. Earnings fell nearly $40 million during the period, which First Horizon previously said was the result of unfavorable conditions in the mortgage market and a class action settlement. (https://www.mortgagedaily.com/FirstHorizonProduction102306.asp)
Countrywide Financial Corp. started the elimination of over 2,500 jobs, a spokesman told MortgageDaily.com. A majority of the layoffs will take place this quarter.
Despite the job cuts, the spokesman said, “Countrywide continues to actively and aggressively expand its sales force.” (https://www.mortgagedaily.com/LayoffsCountrywide102506.asp)
Alt-A originations nearly doubled from 2004 levels, according to a recent 94-page report from the Office of Federal Housing Enterprise Oversight. The report indicated the top 25 lenders were responsible for the majority of single-family mortgages originated. (https://www.mortgagedaily.com/MortgageMarketReport102306.asp)
Read complete mortgage industry news at https://www.mortgagedaily.com
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Source: MortgageDaily.com
