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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American Home Mortgage Files Civil Suit Against Texas Appraiser and Mortgage Broker
American Home Mortgage Acceptance, Inc. filed a civil lawsuit in the Southern District of Texas, Houston Division, against Alltex Lending Services, LLC, My House Mortgage, LLC and Diane Bell.
According to the complaint, Alltex, under the trade name Alltex Realty Services, is engaged in the business of appraising residential properties. Bell performed appraisals as an employee or independent contractor of Alltex.
According to the complaint, in July 2004, American Home made a loan of $380,000 secured by a mortgage on property located at 5150 Hidalgo Street, Unit 1902, Houston, Texas. Alltex and Bell provided an appraisal estimating the market value of the property at $441,000. The appraisal grossly overestimated the property value, according to the complaint, and utilized inappropriate comparables, made inappropriate adjustments to comparables and inaccurately described and inflated the sale price of a comparable property in the same building as the subject property. The loan amount thus exceeded the fair market value of the property and the borrower defaulted on the loan, resulting in damages to American Home of $166,612.26.
Pursuant to its brokerage agreement with American Home, My House represnted and warranted the completeness and accuracy of the property appraisal and agreed to indemnify American Home from losses associated with submission of inaccurate information contained within appraisals.
The complaint alleges a cause of action for negligence as to Alltex and Bell and a cause of action for breach of contract as to My House.
It it my opinion that when a real estate agent and a loan officer market the 0 down programs with closing costs paid by the seller it pressures the appraiser to over value the propery. To resist doing so risks future business for the appraiser. It for this reason I think it is a good move for fha to move to a legitimate 0 down program and eliminate charity gift organizations from being an acceptable practice.
I am looking for an attorney to file a lawsuit against American Home Mortgage for a fraud loan. I applied for and was told I was approved for a 5% interest only 5/1 ARM loan with American Home Mortgage. After the loan closed I discovered that the Loan Broker lied and minipluated me into believing that the loan I received was what I applied for. He did this on both of my loans. He also did not correctly pay off the previous lender causing mortgage a 30 day mortgage late on credit report. This was the begging of my credit disaster.
Posted by on 02/19 at 08:17 PM
American Home Mortgage has committed loan fraud to qualify my clients for a cash out refinance in Chula Vista, California, who are now in foreclosure. They sold them a neg am arm, with a loan amount of $560,000, when their gross annual income was less than $50,000 per year, and the husband was
unemployed! My clients have owned this home for over 10 years, and are now going to be homeless, with 2 children! American Home Mortgage, refuses to mitigate losses by not entertaining 3 short sale bids. AHM Loss Mitigation Department is the most incompetant mortgage banker that I have seen in my 24 years in the mortgage business. No wonder that they are in Chapter 11 BK! They need to be prosecuted, not protected by Bankruptcy Court.
Posted by on 03/18 at 06:47 AM
I bought my home Feb 2007.It is an option arm. I was told that my payment
was fixed for 5 years. What I didn’t know was that once the balance of the loan was @110% then my payment would double
Posted by on 04/29 at 06:03 PM
AMH is the worst I have ever dealt with. Their CS is over seas which causes a language barrier. Their web site very rarely works when it comes to paying your mortgage, so your service charge is higher to use other forms of payment. It is virtual impossible to contact them by phone unless you wait on hold for 2 hrs. No wonder they went bankrupt.
They are just a horrible company to deal with. Then you send the information for loan modification and they can’t finid it.
Posted by on 08/20 at 09:35 AM
I applied for an 80%- 20% loan with both loans at a fixed rate conventional loan. Was told 6%-on the 80 9% on the 20.
Been in the house 3 years and look into refinancing and realize it is 80% for 30 yrs at 6% but the 20% is like 12% interest only with a ten year ballon payment. I was told the day before and at closing that the mortgage was approved for what i was asking. Never any discussion of a high rate and never a word of an interest only with a baloon payment. I would have said hell no and gotten a loan somewhere else. I agree they should be prosecuted not given chapter 11.
Posted by on 09/30 at 06:12 AM
I have been dealing with the worst and most unreliable Mortgage firm; “Loan America Home Loan” in Texas. I have been in process for a loan for 5 months every time my refi is to come to a close something come up or they cannot be reached, days and even weeks go by before I am able to contact them and by this time I am told that the stucture of my loan has changed. Everything they have ever said has proven unreliable or fales. 713.779.0361 There phone # Agents Larry Williams and Giggett Mohamid are flim-flam artist not Mortgage brokers.
Posted by on 10/15 at 06:20 AM
American Home Mortgage Servicing cashed
9 payments from 4/05 to 2/06 paying 2005
from April to December. They returned a
check for Jan. & Feb. 2006 and ordered theirlawyers to start foreclosure on the
24 of Feb. 2006. Been in Court since and
Judge has yet to rule on “Objection tp
Proof of Claim” filed by me. They loss
the check for March 2006 as they had before. I go to Court on June 19 so I
need some help fast.
Posted by on 06/09 at 03:54 PM
option one/ahm have scammed i had a 6.2% in 2005 and was told i couln’t have and equity lone so i rolled 48k and barrowed 27k @a 9.5 adj.was told i was gettin a 7.5 fixed i have had nothing but trouble with this load not exceptin my homeownersINS still charging me for property taxes i’m 100% disabled veteran i pay no property taxes and i’m being forece to pay taxes and forceded ins to save my home pls help 210 815 2582 /667 castle glade SA TX
Posted by on 01/12 at 01:38 PM
I paid Save my home USA $1,800.00 to do a modification for me and then they never finished it. I understand that there was alot of people from all over with the same exact situation as mine...Is there anything we can do to get our money back? It was a fraud and a Scam. Is there a civil suit yet in place for this yet? Please help!!!
Thank you
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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