MortgageReverse

Loan Officer Gets 41 Months, Must Pay $1.9 Million in Reverse Mortgage Scheme

A loan officer was sentenced this week to 41 months in prison and was ordered to pay nearly $2 million in restitution for his part in a reverse mortgage scheme that bilked Genworth Financial Home Equity Access, the Federal Housing Administration and senior borrowers. John Incandela of Palm Beach, Florida, pled guilty in August in the $2.5 million scheme, along with two other defendants including another loan officer and title agent.

Incandela and co-defendant Marcos Echevarria, also of Palm Beach, Florida, solicited seniors to refinance their mortgages into reverse mortgages. Through wire fraud and false documentation, the defendants altered home appraisals to fraudulently inflate the borrowers’ home values, then submitted those appraisals to Genworth Financial Home Equity Access. Based on the false documentation, Genworth approved and the Federal Housing Administration insured more than $2.5 in fraudulent reverse mortgage loans.

The sentencing includes 41 months in prison, three years of supervised release and $1.9 million in restitution owed by Incandela, according to the Department of Justice.

A third defendant, Kimberly Mackey, 47, formerly a licensed title agent, was sentenced in November to five years in prison. Echevarria received a prison sentence of two years at that time. Louis Gendason, a final defendant, is scheduled to be sentenced on January 20.

Written by Elizabeth Ecker

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