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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Cade Emerson Lee, was issued a cease and desist order by the Colorado Department of Real Estate. This is the first formal action against mortgage brokers accused of violating Colorado’s new lending laws. The Division of Real Estate is also seeking a $20,000 fine against Lee. In addition, Adriana Arzate‘s license was summarily suspended and the Division is seeking $10,000 in fines asserting that Arzate falsified borrowers’ financial information so they could obtain loans for which they were not qualified. Cease and desist and summary suspensions are emergency measures used when the public’s safety or welfare is in danger, and immediately prohibit the individuals from acting as mortgage brokers.
The Division of Real Estate asserts that Lee, a former stockbroker who was convicted of securities fraud, has been acting as an unregistered mortgage broker in the State of Colorado. Lee, who is on a probationary work release program, was found guilty of securities fraud for cheating a group of elderly investors out of four million dollars in a day trading scam. He was ordered to pay restitution. The new mortgage broker laws prohibit felons convicted of crimes involving fraud, misrepresentation or deceit from becoming licensed as mortgage brokers. Brokering mortgages without a license puts consumers at risk. The new law requires mortgage brokers to obtain surety bonds and errors and omissions insurance to safeguard the public in the event of wrongdoing.
In a separate case, the Division alleges that Adriana Arzate, a licensed Colorado mortgage broker, altered borrowers’ personal information so they could acquire mortgage loans for which they did not qualify. The documents allegedly altered include verification of employment papers, falsified W2s, pay stubs, 1003 and 1008 forms that represented inaccurate incomes and job titles. The Division asserts Arzate violated her duty of good faith and fair dealing.
Governor Ritter signed four mortgage broker bills into law on June 1st, 2007. The new laws, collectively named The Mortgage Broker Licensing Act, were designed to protect consumers from unscrupulous lending practices. The Governor and lawmakers responded to Colorado’s status as having one of the highest foreclosure rates in the country and highest incidence of mortgage fraud. Recent federal proposals incorporate several of Colorado’s statutory provisions. The Director of the Division of Real Estate, Erin Toll, is charged with implementing the new law.
“Combating mortgage fraud and reducing Colorado’s foreclosure rate are my top priorities,” said Erin Toll, Director of the Division of Real Estate. “These are just the first of several actions we intend to take to enforce the new law,” she said.
Nice!!! Lee did 2 refinances for us - used appraisers that overpriced the value of our home - and represented himself as a mortgage broker. He should get more than a fine, in my opinion!
Posted by on 03/25 at 05:48 PM
When he refinanced your home, “not only once but twice” and “Mr. Predatory lender” bad bad mortgage guy, showed you a higher value for your home, why did you still refinance with him??? If you took that additional equity out of the inflated value, and paid off XYZ, then you are just as much a fraud as the company who refinanced you! YOU GOT OVER ON THE SYSTEM AND PUT THE MONEY IN YOUR GREEDY LITTLE POCKETS, SO SHUT UP!
YOU USED HIM TWICE!!!!!
Posted by on 09/27 at 04:09 AM
Ya know what Mr. “Truth”? We didn’t know at the time that he was working with the appraisers to increase the reported value - he showed us comps of the area that seemed to agree with the appraiser’s report and we trusted him (our bad). And what did we get over on the system??? We still own our house and are making our payments and, by the way, we only refinanced to get a lower payment and DID NOT TAKE MONEY OUT!!! What, are you related to this guy or something??!!??
Posted by on 09/27 at 05:22 AM
Well if he gave you a lower rate and didn’t max you out with his broker fee, max 7% 2.5 to 3 years ago current 4% max
then the value report being higher than the true market did not affect you in a negative way. I’m not saying what he did was right, only that it had no effect on your life except in a positive way. Unless he gave you a neg interest loan and now you own more than current value. Other wise stop riding the “boo hoo” band wagon!
Posted by on 09/27 at 07:20 AM
I don’t recall riding the boo hoo wagon and no, our refi didn’t affect us negatively. It must have been bad for other people though, otherwise why the court actions? I am simply tired of seeing the public put their trust in people, only to receive a big kick in their collective behinds. Cade is definetely a slick talker and, to his credit, has taught me to be very wary of anyone offering assistance with anything. Live and learn, right?
Posted by on 09/27 at 01:47 PM
I am so impressed at how uninformed not only the division of real estate is but the general public....
The investigation on the news paper by have was not present. The only story that they could establish was one that would sell news papers....some kind of sensation is what they were looking for.
Since most of the public was not involved nor at the trial to see or hear what went on in the Security case against Cade Emerson Lee...you see to be talking about the thinks you have read from an ill informed news paper and counting yourself knowledgeable!
This seems to be what we do as people...believe every thing you read.
That is why I am sending this blog...if you think you would know there are two sides to every story and you would seek truth. I realize it is just easier for someone to tell you half a story and make it the whole truth and nothing but the truth.....but it never is when you have just one side of the story…
Too bad we loss Paul Harvey, the guy who would tell you “the rest of the story”.
They were not all little elderly investors, they made money in many cases. I was there, I saw their payments being hand delivered. They came to court to testify for him.
I was at he’s office many times and know what kind of loans he and he’s staff got approved. Any one who has every been in the mortgage business knows that lenders, even though they are taking their beating, at that time still looked for a net tangable benefit for the borrowers. Loans where not approved by lenders if “were putting the borrower at risk”....
One should learn the truth before they pipe in on things or situations that they KNOW NOTHING ABOUT. Just because you read half a story...true or not…
it does not tell you the “rest of the story”
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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