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.
Erie Area Mortgage Broker Gets Prison in Fraud Case
GoErie.com - Erie, PA
Shortly before receiving a nearly three-year federal prison sentence, former mortgage office manager Francis R. Conti told the judge he never meant to defraud any of the homeowners caught up in a widespread local mortgage-fraud scheme.
Three Former Portland-Area Mortgage Brokers Face Fraud Charges
OregonLive.com - Portland, OR
Joel D. Surprenant, Michael Duc Han and Benjamin Lucian Lucescu all were charged with one count of obtaining mortgage loans through materially false and fraudulent pretenses.
Shaker Pair Pleads Guilty to Mortgage Fraud Charges
Cleveland.com - Cleveland, OH
Two Shaker Heights residents recently pleaded guilty to charges involving a mortgage scheme with seven area houses and $3 million in fraudulent loans.
Feds File Charges in Five Mortgage Fraud Cases
Chicago Breaking News - Tribune - Chicago, IL
Federal charges were filed today against 37 people and four companies in five separate mortgage fraud cases.
Feds Fighting Back
Contra Costa Times - Walnut Creek, CA
Mortgage fraud has increased so dramatically in the San Joaquin Valley that a task force of federal, state and local agencies has been formed to fight back.
Private Investigator Sees Rise in Mortgage Fraud Due to Economy
PR Web - Ferndale, WA
In the past 12 months his firm has been retained to conduct over 300 mortgage fraud investigations, a 100% increase from 2007.
Former UGA, NFL Football Player Arthur Marshall Charged With Mortgage Fraud Claims
WJBF-TV - Augusta, GA
He is also accused of defrauding three banks in obtaining loans for seven different properties in Columbia and Richmond Counties.
Cuomo Subpoenas Loan Modification Companies
New York Times - United States
“The entire industry is a scam, in my opinion,” Mr. Cuomo said Tuesday. “These are services that homeowners don’t need to pay for in the first place.”
Defendant Pleads Guilty to Wire Fraud Relating to Mortgage Fraud Scheme
Imperial Valley News - Holtville, CA
Scavitti admitted that between 2003 and August 2008 he unlawfully diverted mortgage funds that were wire transferred into his client office account to his own personal benefit, resulting in losses in excess of $2.5 million.
Fed Drug Report: Double Trouble for Metro Chicago
ABC7Chicago.com - IL
...Chicago street gang members run a network of legitimate businesses and have engineered mortgage fraud schemes, both to launder drug proceeds...
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
Update - US v. F. Jeffrey Miller, et al.
Miller II: Judge Julie Robinson has ruled in favor of the defense motion granting a continuance for sentencing of the 3 convicted defendants: F. Jeffrey Miller, Steve Vanatta and Hallie Irvin. The three will now be sentenced after ruling on post trial motions set for August 10, 2009.
Vanatta has been in custody for over 2 years. Vanetta filed a motion for his release pending sentencing. That motion was denied.
Miller remains free pending his sentencing. He has hired a new attorney who filed a motion to delay Miller's sentencing. In one post trial motion, the defense argues as to what assets are subject to seizure.
Defendant Todd Earnshaw is a Kansas City real estate Broker (and brother in law of Miller). Earnshaw has been indicted in what is commonly referred to as Miller I. A trial date for that matter has been set for January, 2010 in Topeka, Kansas.
The Government filed a motion to revoke Earnshaw's bond and remand him to custody while he awaits trial after learning that he allegedly committed the state crimes of Driving Under the Influence, Handicap Parking Violation and Failure to Control Speed to Avoid a Collision while on pretrial release. Notwithstanding finding that probable cause existed to believe that Earnshaw committed the aforementioned state crimes, Judge Robinson denied the motion, but ordered several strict conditions that Earnshaw must follow pending his trial.
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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. 
