Thursday, September 20, 2007
AG To Hold Statewide Hearings On Proposed Mortgage Regs
Massachusetts Attorney General will hold hearings across the state next week on amendments her office has proposed to current mortgage lender and mortgage broker regulations to address unfair and deceptive tactics used in the mortgage industry. The proposed amendments, which were announced last month, are aimed at curbing practices in the mortgage industry which have contributed to the current foreclosure rescue crisis in Massachusetts.
The Attorney General’s Office anticipates that various elected officials, advocacy groups, affected consumers and industry representatives will testify at the regional hearings.
Attorney General Coakley will give opening remarks at the Boston hearing on September 20. Former Chief Judge for the U.S. Bankruptcy Appellate Panel for the First Circuit Court of Appeals Carol Kenner, currently serving Of Counsel to the Attorney General’s Public Protection and Advocacy Bureau, and Assistant Attorney General Christopher Barry-Smith, Chief of the Consumer Protection Division, will serve as the hearing officers.
The Attorney General’s Office proposed several amendments to the current regulations last month. Specifically, the regulations:
Prohibit mortgage brokers or lenders from making a loan if they do not have a reasonable belief that the borrower is able to repay the loan.
Restrict the abuse of no-documentation or “stated income” loans by requiring that the mortgage broker or lender disclose how the interest rates or other charges will increase under a “no-doc” loan, and obtain the borrower’s signed statement of income in order to process those types of loans.
Prohibit mortgage brokers from arranging or processing loans that are not in the borrower’s interest, and prohibit brokers from brokering loans if the broker’s financial interest conflicts with the borrower’s interest.
Prohibit mortgage lenders from steering borrowers to loan products that are more costly than those that the borrower qualifies for, and prohibits lenders from discriminating between similarly qualified borrowers.
The proposed regulations would also expand the scope of the existing mortgage lender and broker regulations prohibiting certain unfair and deceptive advertising practices. The regulations previously applied only to home improvement loans. As amended, the regulations apply to all mortgage loans, including refinancing or purchase money mortgage loans.
In addition to testimony given at these hearings, the Attorney General’s Office will accept written testimony and submissions from the public, with respect to the proposed regulations, through Thursday, September 27.
Upon completion of these hearings, the Attorney General’s Office will have the opportunity to make any appropriate revisions to the proposed regulations before final promulgation. The office anticipates that final promulgation of these regulations will occur by early October 2007.
The hearings will be held at the dates and times below:
Worcester Monday, September 17, 2007, 11:00 a.m.
Worcester Regional Chamber of Commerce
339 Main Street
Worcester, MA
Brockton Tuesday, September 18, 2007, 11:00 a.m
Brockton District Court, Rotunda Room
215 Main Street
Brockton, MA
Springfield Wednesday, September 19, 2007, 10:00 a.m.
Office of the Attorney General
1350 Main Street
Springfield, MA
Boston Thursday, September 20, 2007, 10:00 a.m.
The State House
Gardner Auditorium
Boston, MA
mortgage fraud
I know of a realtor that cashed out of their property twice in the amount of 100% and walked from the property and took the cash to buy a new one because of defaults on the builders behalf. they never tried to sell. they also made a fake company to collect fees from the new home. what should i do, i want to tell someone but i am afraid it will get out and nothing will be done.
Posted by on 09/24 at 06:15 PM
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Some Sources require Registration.
Mortgage Fraud: Beware the Wolf (Loan Officer) in Sheep's Clothing
24-7PressRelease.com - USA
US consumers looking to refinance their homes or to secure a home loan to purchase their dream homes would be well advised to educate themselves...
Internet Scammer Sells Cape Coral Residential Lot For $18,000
The News-Press - Fort Myers, FL
Because she had title insurance, Kunda will probably get back her money from the 2007 purchase, but the incident highlights cracks in the real estate market and the risk from international scammers who are growing more sophisticated.
Prosecutors Busy With Fraud Cases
Daytona Beach News-Journal - Daytona Beach, FL
The U.S. Justice Department has formed more than 40 mortgage fraud task forces nationwide as prosecutors and investigators struggle with a flood of mortgage-related criminal cases. The FBI reports that its mortgage-fraud caseload has more than doubled in three years to about 1,600 investigations that have cost lenders at least $4 billion. About 200 FBI agents are assigned to the cases, up from 120 a year ago.
Yanchek may take plea deal
Herald Tribune
Sarasota attorney John Yanchek is expected to plead guilty to mortgage fraud next week, statements from a federal prosecutor and the judge presiding over the high-profile criminal case seem to indicate.
Bear Stearns Execs Trial Slated for September
News Inferno
Two former Bear Stearns hedge fund executives are slated to go to trial in September over charges that they lied to investors about two of the funds they managed
Rockford, Chicago lead state in mortgage fraud
Rockford Register Star
Reported incidents of mortgage fraud grew by 45 percent in the second quarter compared with the year-ago period.
Report Finds Tampa No. 2 In Florida For Iffy Mortgages
Tampa Bay Online
In a state that leads the nation in mortgage fraud, Tampa had the second most cases of suspicious loan activity of any Florida city, according to a report released this morning from the Reston, Va.-based Mortgage Asset Research Institute.
Mortgage Fraud Jumps by 45% on Fewer Loan Applications in U.S., Per... MARI
Cloud Computing Journal
Key findings from the MARI Quarterly Fraud Report include that fraud most often occurs at the beginning of the loan process. More than 65 percent of fraud incidents are attributed to "General Application Misrepresentation"
Seven Are Accused Of Identity Theft And Mortage Fraud
The Star Ledger, New Jersey
Seven people have been arrested in connection with an international identity-theft scheme that targeted home equity lines of credit and siphoned at least $2.5 million away from dozens of banks, including more than 10 in New Jersey, according to documents unsealed today.
Suthers Cracks Down On Mortgage Fraud
Rocky Mountain News - Denver, CO
Suther’s office also indicted 10 individuals last March in an $11 million mortgage fraud ring involving 34 local properties...Several other investigations of mortgage fraud are ongoing.
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
U.S. v. Miller, et al.
Thursday, December, 18, 2008
Verdict:
F. Jeffrey Miller Guilty of Conspiracy and Money Laundering
Steven Vanatta Guilty of Conspiracy , Money Laundering and Bank Fraud
Hallie Irvin Guilty of Conspiracy , Money Laundering and Bank Fraud
Sandra Jo Harris Not guilty- all counts
More Trial Coverage
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Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
