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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Mortgage Fraud Task Force Recognizes 1 Yr Anniversary
The Western Pennsylvania Mortgage Fraud Task Force, a strategic partnership intended to combat the growing problem of mortgage fraud in the Greater Pittsburgh region, was recognized by United States Attorney Mary Beth Buchanan and key officials from federal, state and local law enforcement and regulatory agencies on it’s one year anniversary.
The Mortgage Fraud Task Force brings together representatives from the U.S. Attorney’s Office, U.S. Secret Service, Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development - Office of Inspector General, Office of the United States Trustee, Pennsylvania Attorney General’s Office, Pennsylvania Department of Banking, Pennsylvania Department of State, Bureau of Enforcement and Investigation and the Allegheny County Sheriff’s Office to investigate and prosecute mortgage fraud offenders.
“Today marks the one year anniversary of the creation of the Western Pennsylvania Mortgage Fraud Task Force, a strategic alliance among law enforcement and regulatory agencies to track and
prosecute mortgage fraud and its perpetrators,” said U.S. Attorney Buchanan. “The charges we are announcing today highlight the strong enforcement response undertaken by this task force to combat the threat mortgage fraud poses to the country’s housing industry and credit markets.”
The mortgage fraud hotline for industry members to call to report potential fraud. The number is 412-894-7550. Once potential abuses have been reported, the task force works with other appropriate law enforcement and prosecutorial entities to evaluate and investigate the claims.
Consumers may report suspected fraud by calling the Pennsylvania Attorney General’s Consumer Protection Hotline at 1-800-441-2555 or by downloading a complaint form from http://www.attorneygeneral.gov.
Mortgage fraud is generally described as a scheme involving the submission of false information to lenders and others in order to obtain mortgage loans that would not otherwise have been approved. Such schemes often include the submission of false information to lenders and others in order to obtain loans at higher values and lower rates than would be available through legitimate means. A typical mortgage fraud scheme employs various professionals such as recruiters, attorneys, appraisers, mortgage brokers, and builders. For example, a victim is recruited. A set of falsified loan application documents, including an inflated appraisal, is prepared and submitted to a victim lender resulting in the issuance of an over-valued loan. Ultimately the property is foreclosed upon due to the inability of the victim buyer to maintain the payments. The lender loses the difference between the foreclosure sale proceeds and the loan balance. The buyer loses any down payment and is left with a credit history that precludes being approved for a mortgage in the future. The conspirators pocket the difference between the overvalued loan and their costs in obtaining the property. Other victims include property owners in the area who see property values plummet as a result of foreclosure sales or vacant foreclosed properties.
According to Jim Gehr, Special Agent in Charge of the U.S. Secret Service in Pittsburgh, “The Secret Service Pittsburgh Field Office is proud to be working in close cooperation with our partners at the federal, state and local levels to detect, prevent and prosecute mortgage fraud cases throughout Western Pennsylvania. The proven success of this task force demonstrates our shared commitment to protecting the American public from financial harm.”
Michael A. Rodriguez, Special Agent in Charge of the FBI’s Pittsburgh Division stated, “As this Task Force commences its second year in combating mortgage fraud in our community, we are reminded of what a significant role the mortgage industry plays in the strength of our national economy. The FBI is committed to its partnership forged with federal, state and regulatory organizations that will root out the criminal element that can weaken this very vital component of our financial industry. From predatory lending to inflated appraisals, unrestrained criminal conduct in the mortgage industry can have serious and long lasting consequences for borrowers, mortgage lenders, and the local community. Worse yet, these practices rob legitimate borrowers and business of the faith that should exist in the mortgage industry. The Western Pennsylvania area ranks second in the United States for mortgage fraud prosecution and this fact alone underscores the importance of the existence of this task force. The FBI is proud to stand shoulder to shoulder with our agency partners in combating mortgage fraud. Through the unified efforts of this task force and willingness of the local community to learn more about this type of fraud, the FBI will continue to combat those that engage in fraudulent and criminal conduct within the mortgage industry.”
“Mortgage fraud crimes create a loss of tax revenue, burden lenders with bad loans and neighborhoods with abandoned and deteriorating properties,” said Anne Marie Coons, Special Agent in Charge IRS-Criminal Investigation, Pittsburgh Field Office. “IRS-Criminal Investigation is proud to be part of the law enforcement dragnet that is having a major impact in smothering this crime. This recent round of indictments should serve as a continued warning to anyone who is contemplating mortgage fraud type schemes that their illegal activity will not go unnoticed.”
“Mortgage fraud can strike a devastating blow, robbing consumers of their homes and money, and transforming the ‘American Dream’ of owning a home into a legal and financial nightmare,” Pennsylvania Attorney General Tom Corbett said. “The Attorney General’s Bureau of Consumer Protection is committed to vigorously investigating real estate and mortgage schemes and working with local and federal authorities to prosecute these scam artists to the fullest extent of the law.”
Joseph Clarke, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General, Mid-Atlantic Region added, “ In this era of economic difficulty, this Task Force demonstrates the Federal Government’s commitment to investigate fraud schemes that victimize unwitting home buyers and financial institutions. The integrity of the Government’s mortgage insurance programs is the HUD Office of Inspector General’s primary obligation and importance.”
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 
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