All Posts Tagged With: "fraud"
Is Foreclosure Flipping Legal & Legit?
If by foreclosure flipping we mean quickly buying and re-selling a foreclosed property bought from a lender then there’s no reason why such a transaction cannot be legal and legit.
Think about stock. You buy stock in the morning and sell it in the evening. You flipped the stock. Does anyone care? No.
Think about a foreclosed [...]
Mortgages: No Jail Time For Lenders
Why have so few lenders gone to jail? In part because neither predatory lending or insider trading with commodities are federal crimes.
4Sep2009 | Peter G. Miller | 0 comments | Continued
Mortgage News: The Crime of the Century
In New York two stock brokers have been found guilty of securities bait-and-switch.
The two men face decades of jail time for defrauding investors by selling securities which were described as being backed by federally-guaranteed student loans when in fact they were actually auction-rate securities, a more risky financial product.
So, let’s review. It’s illegal for stock [...]
No Predatory Lending In 2008?
The FBI is out with its latest annual mortgage fraud tally and the news is fairly grim: Despite a reduction in loan originations, fraud filings from financial institutions increased 36 percent to 63,713 in fiscal 2008 compared to 46,717 filings a year earlier.
This is an unhappy statistic, but it does not tell the whole story. [...]
Countrywide Former CEO, Angelo Mozilo, Charged With Securities Fraud
The SEC has just posted the following news release:
The Securities and Exchange Commission today charged former Countrywide Financial CEO Angelo Mozilo and two other former executives with securities fraud for deliberately misleading investors about the significant credit risks being taken in efforts to build and maintain the company’s market share. Mozilo was additionally charged with [...]
Don’t Get Caught By Changing Foreclosure Rules
If you follow the news these days you can find a growing number of stories concerning “foreclosure rescue specialists.” State attorney generals, legislators and community groups will tell that such folks are hardly candidates for sainthood, that foreclosure rescue specialists are instead engaged in home-stealing scams powered by fraud and deception.
But while states are [...]
Should States Ban Instant Online Real Estate Contracts?
While there has been much debate regarding what broker data to post online, how to post it, and who should do the posting, little has been said about the pros and cons of forming instant client relationships on the Internet.
The current theory seems to be that a consumer can sign on, sign up, click a [...]
Why Is Illegal Flipping A White-Collar Crime?
Hardly a week passes without more revelations of illegal flipping. Typical of what you see has been the recent situation in Cincinnati where more than three dozen people have been convicted in a $50 million illegal flipping scam.
Timothy Husvar, according to the Cincinnati Enquirer, was involved in illegal flipping worth $2.3 million over a [...]
What’s A Cash-Back Transaction?
It is sometimes claimed that it’s possible to buy a home and receive both the house a substantial amount of cash at closing.
For example, a home will be “sold” for $100,000. The deal will be financing with a 95 percent loan-to-value mortgage. However, the seller will provide a $15,000 certificate of deposit to the [...]
Buy-Backs: Keeping Lenders On The Hook
Did you ever wonder what happens to lenders when mortgages fail, when someone gets foreclosed? Lenders know, and for them there are lots of sleepless nights.
“When loans go bad borrowers can be foreclosed. Meanwhile, investors such as pension funds, insurance companies and others who own loans can lose money,” say James J. Saccacio, Chairman [...]
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