Tag Archives: Fraud

LRC Asset Management, a majority-owned company of Loan Resolution Corporation (LRC), has made available a groundbreaking program that targets fraud and reduces REO timelines to less than 180 days. RealtyRecon significantly lowers code violations by verifying occupancy for REOs and provides weekly inspections from agents who work with the program.

Seven people based in Wichita, Kansas were charged for their alleged roles in a mortgage fraud scheme that involved the use of straw buyers and sellers, as well as false loan applications and documents submitted to lenders, U.S. Attorney Garry Grissom announced.

According to Interthinx's yearly Mortgage Fraud Risk Report--based on analysis of loan applications processed throughout 2012 by Interthinx's FraudGUARD system--the 2012 Annual Mortgage Fraud Index was 150, a 3.4 percent rise from 2011's index reading of 145. While the East housed more risky states last year, the West was home to two of the riskiest--Nevada and Arizona, which ranked first and third in terms of risk, respectively.

The Financial Crimes Enforcement Network (FinCEN) reported a 25 percent decline in mortgage loan fraud suspicious activity reports (SARs) last year. However, the organization has seen ""dramatic growth"" in the number of SARs involving foreclosure rescue scams, according to Jennifer Shasky Calvery, director of FinCEN. Overall, financial institutions reported 69,000 suspicious activities to FinCEN in 2012, down from 92,000 in 2011. While this category experienced improvement in 2012, foreclosure rescue scams appear to be on the rise. About 2,800 SARs in 2011 involved foreclosure rescue scams. In 2012, the number ticked up to 4,400.

A father and son were charged for their roles in a fraudulent real estate investment scheme on March 27, the Securities and Exchange Commission (SEC) announced Monday. A federal jury in Detroit convicted John J. Bravata on one count of conspiracy and 14 counts of wire fraud, while his son, Antonio M. Bravata was charged with one count of conspiracy to commit wire fraud.

Months after filing a felony charge against Lorraine Brown, Michigan attorney general Bill Schuette announced the former DocX president has pleaded guilty to racketeering for her alleged role in the company's fraudulent signing practices. [IMAGE] According to a release from Schuette’s office, Brown pleaded guilty to one count of conducting criminal enterprises—a 20-year felony—before Kent County Circuit Court Judge Mark Trusock.

After much speculation and anticipation, the Florida Supreme Court gave its answer to a highly-contested question that asks whether a bank could voluntarily dismiss a foreclosure case without consequence if fraudulent foreclosure documents were found and then refile the case at a later time. In the opinion released Thursday for Roman Pino v. the Bank of New York Mellon, the court sided with BKNY Mellon, emphasizing there was no adverse impact on the homeowner as a result of the bank’s voluntary dismissal of the foreclosure case.

Three former executives of the Bank of Commonwealth based in Norfolk, Virginia were charged for understating millions in loan losses and hiding the state of the bank's portfolio, the Securities and Exchange Commission (SEC) announced in a statement. Edward J. Woodard (former CEO, president, and chairman of the board), Cynthia A. Sabol (former CFO), and Stephen G. Fields (former EVP) were charged for allegedly misrepresenting the bank's deteriorating loan portfolio to investors.

On Monday, the CDPE hosted a webinar to discuss short sale updates through the government’s Home Affordable Foreclosure Alternatives Program (HAFA), which is part of the Making Home Affordable program. Laurie Maggiano, director of policy at Treasury's homeownership preservation office, and Alex Charfen, CEO of the Charfen Institute, led the conversation on the updates. The new policy changes for HAFA will take effect February 1, 2013, but servicers can begin implementing the changes earlier. One of the updates discussed during the webinar is the requirement for servicers to make a decision on a borrower's request for a HAFA short sale within 30 days.

The Consumer Financial Protection Bureau (CFPB) put a stop to two companies it believes took part in mortgage modification scams that cheated thousands struggling homeowners. The CFPB alleges Gordon Law Firm and the National Legal Help Center amassed more than $10 million after charging consumers for services that falsely promised to stop foreclosures or provide modifications.