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
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
Foreclosure Rescue Company Required to Make Disclosures
Highland Financial, a Post Falls, Idaho business that offers mortgage foreclosure rescue services, will change its business and advertising practices. Under the terms of a legal settlement, Highland Financial agrees to comply with the Idaho Consumer Protection Act in its future advertising and promotions.
According to RealtyTrac, an organization that compiles foreclosure statistics, Idaho has experienced a 158% increase in foreclosure filings since October 2006. Due to the mortgage foreclosure crisis, foreclosure rescue businesses, which are a relatively new phenomenon, have multiplied.
Highland Financial advertised that it could help financially distressed consumers end the “stress,” “worries,” and “hassles” of foreclosure, bad credit, and eviction. The Attorney General alleged the company failed to make certain disclosures and may have misrepresented to homeowners that they could help homeowners retain ownership of their homes and improve their credit when that was not the case.
Highland Financial is not a state-registered credit repair business. Therefore, its past offer of free credit repair services allegedly misrepresented the company’s legal authority to provide homeowners with such assistance. “Under the terms of the settlement agreement, Highland Financial may not advertise that it offers debt counseling or credit repair services unless it establishes its qualifications and legal authority to provide those services to consumers,” Attorney General Wasden said.
Highland Financial also must inform consumers in writing of certain important facts before the consumer agrees to transfer ownership of their homes to a third party. Under the settlement, the company must:
· Explain to the homeowner the effect of a due-on-sale clause in an existing mortgage agreement. A due-on-sale clause may require the homeowner to pay off the mortgage when any interest in the property is transferred to another.
· Provide the consumer with his or her home’s current fair market value as determined by a real estate appraiser, the county assessor, or by another method agreed upon by the consumer.
· Disclose the approximate amount of equity that the consumer might lose, which must be calculated by subtracting the value of the home’s existing liens from the home’s fair market value.
· Inform homeowners that the Department of Housing and Urban Development (HUD) offers information to consumers about how to avoid foreclosure and that HUD maintains a current list of approved housing counseling agencies.
“It is important for consumers who are facing the possibility of losing their homes to work with their lenders to find an alternative to foreclosure,” Attorney General Wasden emphasized. “HUD-approved housing counselors will provide consumers with free information about government and private organizations that offer assistance to financially distressed homeowners.”
Consumers should avoid doing business with individuals or companies that:
· Offer to negotiate with your lender for a fee;
· Discourage you from consulting with your lender or an attorney;
· Promise to pay off your mortgage if you give up your equity;
· Offer to rent the property back to you for more than your monthly mortgage payment; or
· Require you to sign your deed over to someone else. This does not necessarily relieve you from responsibility for the debt. Therefore, if the “buyer” fails to make the mortgage payments, the obligation falls on you.
Under the terms of the settlement, Highland Financial must pay $1,000 in civil penalties and reimburse the Attorney General’s Office $2,000 in attorney fees and costs. Highland Financial did not admit any liability or wrongdoing and cooperated with the Attorney General during his investigation.
I was the person who not only turned Highland Financial into the Idaho Attorney General’s Office, but lobbied Idaho’s legislators to make some kind of law to protect her citizens against predators like this company. They not only deceptively took my home, but also $70,000.
I hope that that no one else needs to lose their home to these “distressed property,” “we buy homes,” “foreclosure rescue” scams.
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...
Legal Disclaimer.
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 
mortgage fraud
