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Items Tagged with 'Mortgage fraud'

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  • Is Manafort-style mortgage fraud more common than we think?

    Mortgage fraud is on the rise as more consumers use false claims to jump hurdles to homeownership
    Last week, Paul Manafort was slapped with charges by New York for a multimillion-dollar mortgage fraud scheme, accused of inflating his company's income and failing to disclose his debts in to secure $20 million in loans. Manafort's drama may be extreme, but in the current climate, where home prices are cooling off and the refi market is a fraction of what it used to be, are we likely to see more cases of mortgage fraud emerging?
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  • New York man admits to playing key role in massive multifamily real estate scandal

    Scam defrauded M&T Bank, Berkadia Commercial Mortgage, others
    A New York man has admitted to taking part in a massive multifamily real estate scandal that harkens back to some of the darkest parts of the housing crisis, including fake residents, fake incomes, and inflated mortgages. The charges stem from an investigation that the Wall Street Journal previously called “one of the biggest mortgage-fraud probes since the financial crisis.”
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  • Paul Manafort charged with mortgage fraud in New York minutes after federal sentencing

    If convicted, a presidential pardon won't do any good
    It was a tough day for Paul Manafort. On Wednesday, the former campaign chairman for President Donald Trump was sentenced to an additional 3.5 years in prison on conspiracy charges brought by Special Counsel Robert Mueller. Then, less than an hour later, Manafort was charged by a New York state court for his involvement in a multimillion-dollar mortgage fraud scheme.
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  • Former owner of foreclosure rescue business gets 14 years for stealing borrowers' homes, equity

    Company offered "Keep Your Home" program that targeted struggling homeowners
    The former owner of a California foreclosure rescue business will spend the next 14 years in prison after admitting in court that he used the business to steal struggling borrowers’ homes during the housing crisis. The company offered a “Keep Your Home” program that targeted borrowers who were struggling with their mortgages and facing foreclosure. But the program was a lie.
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  • Fannie Mae identifies new fake employers being used on mortgages

    Five California companies appear to not actually exist
    The number of fake employers showing up on borrowers’ mortgages is growing. Earlier this year, Fannie Mae issued a warning to lenders after identifying more than 30 companies that appeared to be fake that were showing up on borrowers’ mortgage documentation as their place of employment. Now, Fannie Mae is issuing another warning, telling lenders that it has found five more potentially fake employers.
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  • Inside the scandal that could explode multifamily real estate

    WSJ reports on massive multifamily mortgage fraud investigation
    Everything is going swimmingly in multifamily real estate these days, right? Rents keep rising, construction is still chugging along, deals are being made, and delinquencies are still at historic lows. So everything’s good, right? Maybe not. It appears there could a deep, dark secret at the core of multifamily lending. Fake residents, fake incomes, and inflated mortgages. Sound familiar?
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  • Fannie Mae warns of raft of fake employers being used on borrowers’ mortgages

    10 new potentially fake companies are showing up in mortgage documents
    A few months ago, Fannie Mae issued a warning to lenders, cautioning them of more than 30 employers that were showing up on borrowers’ mortgage documentation that appeared to be fake. Those potentially fake companies were generally located in the Southern California and Los Angeles County areas, but it appears that the fake company problem is now moving north.
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  • Family affair: Wife, husband, and daughter all jailed for $20M mortgage fraud

    Matsuba family members collectively get more than 45 years in jail
    Three members of a California family who ran a foreclosure company will spend more than 45 years in jail, collectively, after each was found guilty of participating in a $20 million mortgage fraud scheme that preyed on financially distressed homeowners. According to the Department of Justice, Dorothy Matsuba, her husband, Thomas Matsuba, and her daughter, Jamie Matsuba, each received a sentence of more than 10 years in jail for taking part in the nearly decade-long scheme.
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  • Monday Morning Cup of Coffee: Goldman Sachs teases big move into mortgages

    Marcus for mortgages? Maybe
    Once a big player in mortgage lending, Goldman Sachs’ footprint in housing finance has gotten significantly smaller since the financial crisis…but that could be about to change. Is Marcus for mortgages coming soon? It appears that's something the megabank is considering. That, and more, in your Monday Morning Cup of Coffee.
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