Who should be blamed for mortgage fraud? - BloggingStocks

Posted April 3rd 2008 5:31PM by Filed under: , , , Inch a remark on about an internal memorandum demonstrating that (NYSE: ) was advising its employees to help place proprietors in committing mortgage fraud, one reader had this to say:

This is all bull. They don't cognize who to point there thumb at! Some people just have got selective memory loss and they simply cannot retrieve that they to had a say so when they got their place loans! Lets not just fault it on the Realtor or the mortgage broker! The message here looks to be that consumers should have got told the existent estate people that they were behaving unethically and, in many cases, illegally.That's not an statement that I purchase for a second. If a prospective place purchaser lies to a loaner of his ain volition, that's 1 thing. But if the loaner or Realtor is complicit, he should bear duty for the enactment -- not the place buyer.The fact is that most people who are buying places don't really cognize how the procedure plant and are reliant on on people to supply them with good-faith counsel. The impression that place purchasers have got a duty to make certain that their agents aren't piquant in fraud is not one that I subscribe to.In many cases, naif place purchasers were led to believe that they weren't doing anything incorrect -- that inflating income is just what you do. A into a auto loan military officer who inflated the incomes of loan appliers characteristics him advising the client that "You can't acquire in problem for this. This is just something we make to acquire the loan approved."The loaning industry should take full and complete duty for ethical lapses: no incrimination should be placed on consumers who followed the advice of professionals.

Brokers guilty of fraud on Solon, Pepper Pike, Glenwillow, Cleveland homes

CLEVELAND -- Cuyahoga County Prosecutor Bill George Mason announced that Jesse James Sims and his mortgage brokerage firm company, County Home Mortgage of Ohio, were establish guilty after a three-day experimental for mortgage fraud discourtesies involving a house at 35675 Sedge Circle in Statesman that was fraudulently purchased with a $490,000 loan.

His sentencing is put for 1 p.m. April 14.Sims is a co-defendant inch another mortgage fraud lawsuit involving another Statesman place that is put for trial on May 5.Just before the Sims trial, two other co-defendants, both mortgage agents and their companies, pleaded guilty for their engagement in the Statesman house and four other houses fraudulently purchased.Mortgage broker, Fred Watkins, of Prime Minister Mortgage Ohio, pleaded guilty to three, fourth-degree felonies for three houses: two in Statesman and one in Pepper Pike.In addition, he agreed to plead guilty to 20 felonies for 20 other places located in Solon, Glenwillow, and Cleveland.He confronts a upper limit sentence of 35.5 old age in prison house for these 23 houses which had a sum loan value of $9,818,000."(Sims) took advantage of relaxed criteria of the subprime industry-he knew the purchaser did not have got the income to measure up for a $490,000 loan. His fake claim that he had no duty to verify a declared loan is representative of the infinite unscrupulous agents that have got got contributed to the rampant mortgage fraud in Cuyahoga County," George Mason said.Sims'loan officer/loan processor, Floyd Patterson, pleaded guilty to four misdemeanours involving 4 properties: 1 house in Solon; 1 house in Pepper Pike; and 2 houses in Cleveland.Watkins, his company, and Patterson will pay damages that includes back taxations and fines, which will be determined at sentencing.Both agreed to attest truthfully against others and immediately after his plea, Watkins testified against Sims and his company.Shirley Rodgers, an proprietor of the now-defunct Regency Title; Erectile Dysfunction Emery, a detergent builder in Solon; and Eloise Anderson, the purchaser of these properties, also testified against Sims.Rogers, Emery, and Sherwood Sherwood Sherwood Anderson have already been establish guilty for their deceitful behavior regarding this Statesman house and others.Emery and Anderson are serving prison house footing and Richard Richard Rodgers will be sentenced after Sims' adjacent trial in May.