Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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Legal Action Filed Against Housing Scam That Targeted Hispanic Homebuyers
Jose Fernando "Fern" Hernandez, a real estate broker, his wife, Odessa S. Hernandezand his company, Fern Hernandez Realty, Inc., have been charged by Texas Attorney General Greg Abbott with defrauding Hispanic home buyers. According to court documents filed in Travis County, the defendants falsely promised their customers home ownership when, in fact, the customers' homes were actually owned by the defendants.
Hernandez, who advertised his real estate brokerage services on Spanish-language television and radio, promoted new home sales in Travis and Williamson counties,Texas. When potential home buyers contacted Fern Hernandez Realty, Hernandez or his sales representatives took inquiring customers to look at new homes. If the clients found a home they wanted, or a model home similar to what they wanted built, Hernandez would explain the home purchase process.
When Spanish-speaking clients did not qualify for traditional financing, Hernandez would offer them financing through a group of "investors." He promised them if they made monthly payments to this group for a year, the house would be transferred to the home buyer. Investigators discovered there were no outside "investors." Hernandez would close on the houses, with either he or his wife acting as the official buyer and taking title to what the home buyers thought was their property.
State investigators also found that Hernandez failed to provide his customers documentation verifying their purchase of the home. In one case, a couple gave the Hernandezes a $23,000 down payment on a home. The customers, however, did not actually own the residence and instead were given a lease/option arrangement for the house they thought they purchased.
In another case, a Spanish-speaking customer provided a certified check for $4,375 as down payment on a house; however, the customers never took title to the property. Rather, the home was purchased in Odessa Hernandez' name.
Nearly a year later, Hernandez provided the Spanish-speaking client with a contract written in English. The home buyer took the contract to a friend who could read English and only then did the home buyer learn that the document did not memorialize his purchase of the home. Instead, it gave the home buyer a lease with an option to purchase the residence.
When he was confronted about it, Hernandez explained that the $4,375 check was the payment for the option, not a down payment. Hernandez told the home buyer that if he wanted the house in his name, he would need to obtain financing from someone else. Later, the customer learned he would have to pay an additional $7,500 to transfer the title to his name. At this point, the customer refused to pay anymore and moved from the house.
According to state investigators, at least six properties in the defendants' names were leased to individuals who thought they owned the home in which they resided.
The Office of the Attorney General is seeking restitution for affected home buyers and a civil penalty of up to $20,000 for each of the defendants' violations of the Deceptive Trade Practices Act.
Consumers who believe they have been deceived in the purchase of real estate should contact the Office of the Attorney General at (800) 252-8011 or file a complaint online at http://www.texasattorneygeneral.gov.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
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