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Tag Archives: Fraud

Major Banks Accused of Defrauding Veterans, Taxpayers

While five major banks continue to deliberate with the state attorneys general for a settlement involving violations in mortgage documentation, the same five banks, plus several others, also face charges for committing fraud against veterans and taxpayers. Defendants accuse 13 banks of ""a brazen scheme to defraud both our nation's veterans and the United States Treasury of millions of dollars"" by overcharging borrowers in connection with home loans refinanced through a U.S. Veterans Affairs program.

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Las Vegas Issues Alert on Foreclosure Rental Scam

Local media in Las Vegas are reporting that unsuspecting renters are falling victim to an elaborate fraud scheme involving vacant foreclosures. Con artists are combing the Las Vegas Valley for homes that have been sitting empty for an extended period of time - such properties aren't hard to come by in the foreclosure-ridden area. They then advertise the home as ""for rent"" and bilk victims out of thousands of dollars before they realize the fraud has taken place.

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Former Lend America President Pleads Guilty to Mortgage Fraud

After admitting to an extensive mortgage fraud scheme, the former president of Lend America was suspended from doing any future business with HUD. Michael Primeau pled guilty to charges that he ordered employees to pay company operating expenses with funds intended to cover borrowers' first mortgages at refinance closings. Previously an FHA-approved lender, Lend America also allegedly violated FHA's origination and underwriting standards on several occasions, according to HUD.

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Two California Investors Plead Guilty to Bid Rigging

Two real estate investors are pleading guilty to mail fraud and bid rigging at public foreclosure auctions in Northern California, according to the Department of Justice. The investors conspired with others to quash competition for properties at foreclosure auctions in Alameda and Contra Costa counties in 2009 and 2010. The duo also admitted to committing mail fraud by using mail to organize their own private auctions open only to co-conspirators.

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Former Countrywide Employee Behind Bars

A former Countrywide employee is now behind bars and being forced to pay $1.2 million in restitution for stealing and dispersing confidential customer information, including social security numbers. A U.S. district judge sentenced 39-year-old Pasadena resident Rene Rebollo to eight months in prison and 10 months in a community corrections facility. Rebollo, who served as a senior financial analyst in Countrywide's subprime mortgage division, pled guilty to the charges.

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Nevada Announces New ‘Foreclosure Fraud Reform’ Law

Nevada has held the number one spot in state foreclosure rankings for 56 consecutive months. In fact, for the month of August, RealtyTrac reports one in every 118 Nevada homes received a foreclosure filing. While foreclosures cannot always be prevented, the state is taking steps to protect homeowners facing foreclosure. A new ""Foreclosure Fraud Reform"" law will go into effect October 1. It lays out new rules for the recording of foreclosure documents and mandates the foreclosing party prove chain of title.

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Mortgage Fraud Suspicion Rises 88% Since Last Year

The amount of suspicious activity reports related to mortgage fraud filed in the second quarter of this year is 88 percent greater than the amount filed in the second quarter of 2010. Financial institutions sent in nearly 30,000 reports of suspected mortgage fraud over the April-to-June period this year, according to the Financial Crimes Enforcement Network. More than three-fourths involved suspicious activity that occurred before 2008, but officials say they're seeing evidence of ongoing fraud.

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Mortgage Litigations More Than Double Year-Over-Year

Mortgage litigations in the second quarter of 2011 have more than doubled since last year, according to an industry report released Monday. During the April-to-June period, mortgage litigations reached 190 cases, up from 75 over the same quarter in 2010 and 151 during the first quarter of this year. Foreclosure-related litigation rose from 29 cases in the second quarter of 2010 to 67 cases a year later. The study also recorded a significant jump in cases involving secondary market transactions.

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Mortgage Fraud Declines: Report

Mortgage fraud grew in the second quarter of the year but was down from where it was a year earlier, according to the Second Quarter 2011 Mortgage Fraud Index, released Monday by MortgageDaily.com. The index, based on criminal and civil cases in which defendants allegedly attempted to deceive real estate lenders into making credit decisions based on fraudulent documentation or false appraisal values, increased to 1261 based on 194 cases during the quarter, up 27 percent from the previous period, but down from 1699 for the same period last year.

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Obama’s Pick to Protect Consumers Testifies Before Senate

Richard Cordray has been hand-picked by President Obama to lead the new Consumer Financial Protection Bureau (CFPB). On Wednesday, Cordray stood before the U.S. Senate to make a case for lawmakers' confirmation of his appointment. On the heels of major lawsuits announced by the government related to mortgage bonds, Cordray told senators that regulatory authority is his weapon of choice as opposed to litigation, which can be ""a very slow, wasteful, and needlessly acrimonious way to resolve a problem.""

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