Stewart Sues Brokers
Some of the mortgage brokers who previously operated as part of a defunct net branch network are embroiled in a $3 million mortgage fraud lawsuit in the Massachusetts state courts.
Broker Beats State
A Massachusetts judge has ruled that a mortgage broker was the victim — and not the perpetrator — of a fraudulent mortgage license scheme.
BK Trustee Targets Lenders
A bankruptcy trustee seeks to set aside liens held by mortgage lenders including Washington Mutual and National City for their alleged negligent underwriting of fraudulent loans from a now bankrupt company that bilked 490 investors of $40 million.
Outstanding Mortgages Top $12 Trillion
Mortgage loans outstanding surpassed $12 trillion, according to the chief of the U.S. Treasury. Meanwhile, the risk of fraud on America’s mortgages is growing a slower pace.
Real, Phony Attorneys Busted
Flagstar Bank was duped in one case involving a crooked lawyer for $700,000 while a Miami attorney stole about that amount in public money.
Appraisals Enabled Fraud
An Atlanta area homebuilder fooled two mortgage lenders into funding a string of mortgages on incomplete or nonexistent new homes by using fake appraisals and occupancy certificates.
Underwriters Fired for Fraud
An Ohio bank has reportedly fired a handful of underwriting employees and filed a lawsuit against dozens of people for more than $10 million it claims was lost in a mortgage fraud scheme.
Federal Fraud Prevention
Actions taken so far this year by the Federal Trade Commission include a settlement with a credit reporting agency that provided faulty reports to mortgage lenders and an injunction against a mortgage telemarketer. The moves were taken in line with the agency’s objectives of identifying, stopping and preventing fraud.
Legislator Accused of Foreclosure Fraud
The Maryland Attorney General is looking into claims that a state legislator duped a woman into selling her home to him.
Fraud Rises
Mortgage fraud activity increased during the first half of this year.
Warehouse Fraud at Flagstar
Flagstar Bancorp Inc. will take an $8.7 million charge related to a series of fraudulent warehouse loans.
