Items Tagged with 'Warehouse line of credit'

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  • Senior execs at Vanguard Funding sent to jail for embezzling $8.9 million

    CFO and COO previously admitted to using warehouse loans for personal expenses
    The former chief operating officer and chief financial officer of New York-based lender Vanguard Funding will spend between 18 and 24 months in prison after admitting to embezzling more than $8.9 million from warehouse lines of credit that were meant to fund mortgages.
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  • Senior execs at Vanguard Funding admit to embezzling $8.9 million

    CFO and COO plead guilty to using warehouse loans for personal expenses
    The former chief operating officer and chief financial officer of a New York mortgage lender admitted in court this week that they conspired to misappropriate more than $8.9 million from warehouse lines of credit that were meant to fund mortgages. Each now faces up to 20 years in prison.
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  • Former bank vice president accused of defrauding warehouse lenders out of $12 million

    John Reimer charged with crisis-era fraud
    The former vice president and comptroller of a New York bank is facing charges that he took part in a scheme that defrauded warehouse lenders out of $12 million during the financial crisis. The indictment states that John Reimer allegedly “double-pledged” certain properties, meaning that he obtained multiple warehouse advances from more than one warehouse lender under false pretenses.
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  • Senior execs at Vanguard Funding accused of embezzling $8.9 million

    Three execs charged with using warehouse loans for personal expenses
    Three senior executives at a New York mortgage lender were arrested Tuesday morning and charged with misappropriating $9 million from warehouse lines of credit meant to be used to fund mortgages. The three men, who are senior executives at Vanguard Funding, stand charged with conspiracy to commit wire and bank fraud for allegedly misusing the warehouse funds to pay for personal expenses and compensation.
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  • MBA: Change Risk Weighting for Warehouse Credit

    Faced with a growing dearth of funding for non-depository mortgage lenders, the Mortgage Bankers Association earlier this week sent a letter to key regulators asking for changes in risk-based capital weightings tied to various warehouse lines of credit. Calling the decrease in warehouse credit availability for lenders a "signficant, yet avoidable, bottleneck", MBA president John Courson suggested that regulators look at easing capital requirements tied to warehouse lines of credit.
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  • Option One Gets $350M Funding Boost for Servicing Ops

    In a filing with the SEC this morning, H&R Block said that its troubled mortgage unit Option One Mortgage Corporation had received an additional $350 million in funding for servicing advances from a unit of Royal Bank of Scotland Group, PLC. The tax preparation company, which has seen its financial fortunes sink under the wieght of mounting losses at Option One, said that Greenwich Capital Financial Products had increased a debt facility used to fund servicing advances from $400 million to $750 million.
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