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Tag Archives: Fraud

SEC Charges Three Former Execs for Misrepresenting Bank’s Portfolio

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.

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Webinar Addresses Pending 2013 HAFA Short Sale Changes

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.

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CFPB Stops Two Operations for Allegedly Scamming Homeowners

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.

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Mortgage Fraud on the Rise, Short Sale Fraud Expected to Increase

After remaining relatively flat for about a year, mortgage fraud is on the rise again, according to CoreLogic. All categories of mortgage fraud increased year-over-year in the first quarter of 2012, with employment fraud taking the lead with a 50 percent increase. CoreLogic attributes this rise to continued high levels of unemployment across the nation combined with low mortgage rates, incentivizing homeowners to misrepresent their employment status on loan applications. In an environment of increasing distressed sales, CoreLogic also sees heightened risk for short sale fraud.

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SEC Ends Probe of Wells Fargo

The Securities and Exchange Commission (SEC) has ended its investigation of potential fraud in offering documents for mortgage-backed securities (MBS) sold by Wells Fargo, Bloomberg reports. The biggest home lender in the country announced in a regulatory filing that the SEC notified the bank on November 20 that the agency was ending its probe without enforcement.

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Michigan AG Files Felony Charge Against Ex-President of DocX

Lorraine Brown's legal drama continues as Michigan attorney general Bill Schuette announced the filing of a felony charge against the former DocX president. Brown is being charged with one count of conducting criminal enterprises (racketeering) for her alleged role in authorizing the fraudulent signing of mortgage documents filed in the state.

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Mortgage Fraud Decreases in Q3, but Looms Large in Certain Areas

The national mortgage fraud index fell to the lowest level in two years after spiking in the previous quarter, according to data from Interthinx. The mortgage fraud index dropped to 137 in the third quarter of this year, down 7.7 percent from the previous quarter and 4.5 percent from the same quarter a year ago. The number of metropolitan areas in the very high risk category also declined, falling to 70 in the third quarter from 91 in the second quarter. But, just two states--California and Florida-- accounted for more than half of the very high risk metros.

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JPMorgan, Credit Suisse Settle RMBS Charges for $416.9M

JPMorgan Securities LLC and Credit Suisse Securities (USA) paid a combined $416.9 million to settle charges of misleading investors in the sale of residential mortgage-backed securities (RMBS), the Securities and Exchange Commission (SEC) announced. According to the SEC's complaint against JPMorgan, the bank misstated information about the delinquency status of mortgages that provided collateral for an RMBS offering it underwrote. JPMorgan received fees of more than $2.7 million, and investors sustained losses of at least $37 million on undisclosed delinquent loans, the SEC says.

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Virginia Man Receives 14-Year Sentence for Bank Fraud

A Virginia man received a sentence of 14 years in federal prison for carrying out elaborate and sophisticated fraud schemes that took millions away from investors and the government, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) announced.

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