How "Flippers" Target Novice Real Estate Investors
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Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
A concern of the Commission is that, because originating mortgage lenders get paid up front and often sell the loan to another lender, the original lender may be less inclined to make sure the customer will be able to pay the loan over the long haul.
One regulator seems to suggest that, through the use of "Wite-Out or cut-and-paste documents", it has become too easy for originating lenders to "pad a home buyer's bank account", "[change] a potential home buyers' annual income", and otherwise "falsify loan applications". "[Letting] family members with good credit sign for a relative's home" is also a concern.
For more, see Lenders may face new rules.
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For additional information on this case, including allegations of:
see 18 page Indictment - U.S. vs. Miller, Sparks, et. al. (Miller #2)
For details of the earlier indictment of real estate developer F. Jeffrey Miller, including a request of forfeiture in excess of $25 million, see 19 page Indictment - U.S. vs. Miller, et. al. (Miller #1)
Bill targeting cash-back mortgage deals moves forward
Michigan
Michigan lawmakers considering laws to combat identity theft. See ID theft attacked by GOP's Caul, Dem Angerer
Texas
House Bill 716 is pending in the legislature and would establish specific punishments for mortgage fraud, including imprisonment for up to 20 years and fines of up to $10,000 for knowingly making false statements. The law would apply both to consumers and to mortgage industry insiders. See Tougher mortgage fraud penalties eyed.
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To read the article, see Mortgage fraud, money laundering indictment handed up.
Click here for the 30 Count Grand Jury Indictment against Anthony Andersen.
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