Mortgage Fraud Blog for June 30, 2012

Here at ten articles from Rachel Dollar and the Mortgage Fraud Blog. The one I was interested in was the fifth article involving appraisals. According to this article the appraisals were prepared “using fake photos and descriptions of the properties, misrepresenting the condition of the properties, and used inappropriate comparable properties. The total loss for the 17 loans amounted to $2,661,366.” If that wouldn’t be bad enough the description shows further problems with the appraisal process.

“In March and June 2007, [he] used his co-conspirator as the mortgage broker to refinance property that he and his wife owned in Catonsville, Maryland. [He] submitted false appraisals that inflated the property value and caused another appraiser to sign the documents to avoid the obvious conflict of performing an appraisal on his own property. With [his] knowledge, his co-conspirator processed the loan in [his] wife’s name, falsifying her income and employment, as well as the balance in the couple’s bank account and misrepresented other information. The loans were funded by another mortgage company, and [he] and his wife eventually defaulted on the loan, resulting in a loss of nearly $140,000.” [Name removed.]

Penalty: Facing a maximum sentence of 20 years in prison followed by three years of supervised release.

Here is another appraiser criminal case allegedly involving overstating the fair market value of properties used to collateralize loans. Penalty: “Judge Fischer scheduled sentencing for November 1, 2012. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.”

Mortgage Fraud Blog - Perp Walk - 10 new articles

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Steve Lombardi
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