Brian Edwards, 50, Fort Wayne, Indiana was sentenced by District Judge Jon E. DeGuilio to 21 months imprisonment, 2 years supervised release and of $400,000 in restitution after pleading guilty to the felony offense of making false statement in connection with a mortgage loan and mortgage insurance.
According to documents filed in this case, during 2008 through 2010, Edwards was a licensed loan originator in Fort Wayne, Indiana. Edwards and others involved would sell low-end houses to purchasers unable to qualify for mortgage loans.
Through the use of falsified gift letters, Edwards was able to falsely represent borrower assets to qualify individuals for mortgage loans they could not pay. Buyers soon after obtaining the homes could not maintain the locations and the homes went into foreclosure. Edwards knowingly submitted to lenders loan applications containing false representation of borrower assets and phony bank account documentation. The defendant received thousands of dollars from his part of the fraudulent business.
This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Donald Schmid.
This is what loan officers call “Creative financing”, as they are taught by their mentors. It is standard practice in the industry.