Mortgage fraud is a crime in which the intent is to materially misrepresent or omit information on a mortgage loan application in order to obtain a loan or to obtain a larger loan than could have been obtained had the lender or borrower known the truth.
General Electric Agrees to Pay $1.5 Billion Penalty for Alleged Misrepresentations Concerning Subprime Loans Included in Residential Mortgage-Backed Securities
Department of Justice Office of Public Affairs FOR IMMEDIATE RELEASE Friday, April 12, 2019 The Department of Justice today announced that General Electric (GE) will pay a civil penalty of $1.5 billion under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to resolve claims involving subprime residential mortgage loans originated by WMC […]
- Billion Dollar Mortgage Fraud Schemer Sentenced January 13, 2016Prison time is ahead for a defendant in a smaller residential lending fraud case and an exponentially larger case involving distressed commercial real estate loans.Tony Huy Havens has been sentenced for arranging the fraudulent purchase of a single-family residence in Modesto, California, using relatives as straw buyers.But the simple case of mortgage fraud pales in […]
- Mortgage Banker on Trial for $30 Million in Fraud January 8, 2016A federal prosecutor delivered his opening statement to a New York jury in a criminal case alleging $30 million in secondary and mortgage fraud.On trial are Aaron Wider, who heads up the mortgage banking firm HTFC Corp., and Joseph Ferrara Jr., who claims he is innocent of the charges.According to the Department of Justice, HTFC […]
- Loan Application Fraud on the Decline December 29, 2015For several months now, applications for residential loans have seen fewer instances of prospective borrowers trying to mislead home lenders.The frequency of defects, fraud and misrepresentation in the information submitted in loan applications was off more than a percent in November.It turns out that defect and misrepresentation risk on mortgage applications has actually declined for […]
- Former Cop Admits Role in Mortgage Broker Fraud November 24, 2015A former police officer who was honored for his efforts in reducing violent crimes has admitted to his role in a pre-crisis mortgage fraud scheme.Century III Home Equity was a mortgage brokerage that operated in the Pittsburgh area until 2008. The company was owned by James Nassida.Federal prosecutors allege that Nassida and other members of […]
- Former SunTrust Executive, Relatives Convicted February 5, 2015A former executive at SunTrust Mortgage Inc., his wife and two brothers-in-law have been convicted for running a mortgage fraud scheme.Back in 2005, Mohsin Raza was employed at Bank of America Corp. SunTrust recruited Raza at that point to work as a vice president.According to court documents, Richmond, Virginia-based SunTrust hired Raza to open a […]