Initial Court Appearance for the Alleged Mortgage Fraud Mastermind

October 20, 2010
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Bayside, New York – Jong Shin was the alleged mastermind of a mortgage fraud and money laundering scheme that involved residential properties in Atlantic City, New Jersey has his initial appearance in connection with a two-count indictment.

The Indictment charges that Shin conspired with others to get hold of more than a million dollars of mortgage loans for unqualified borrowers during June 2006 through December 2006 to purchase seven houses in Atlantic City at inflated prices. The Indictment further alleges that Jong Shin and other members of the conspiracy took out a portion of the proceeds from the fraudulently obtained mortgage funds paid at the real estate closings, which Shin used…

The Misconceptions on Reversed Mortgage Reality

September 27, 2010
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Most people have preconceived notions about reverse mortgages. There are many misconceptions of reverse mortgage reality.

Here are some facts to ease your fear from reverse mortgage reality:

* A reverse mortgage is a mortgage just like any loan against the home but it has special terms for seniors 62 and older.
* The lender or bank does NOT own the home – YOU OWN THE HOME, you keep the title!
* There are no income or credit score requirements to qualify.
* No monthly payments required.
* There is no limitation on how the funds can be used.
* More options – Funds can be received in monthly payments structured as needed, line of credit (with…

Mortgage Rates Rose Following Bond Yields

September 1, 2010
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Freddie Mac made public the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.99 percent with an average 0.6 point for the week ending March 25, 2010, somewhat rose from last week when it averaged 4.96 percent.

The 15-year FRM this week averaged 4.34 percent with an average 0.6 point, somewhat rose from last week when it averaged 4.33 percent. A year ago at this time, the 15-year FRM averaged 4.58 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.14 percent this week, with an average 0.6 point, higher from last week when it averaged 4.09 percent.

The 1-year Treasury-indexed ARM averaged 4.20…

Mortgage Fraud Committed by a Home Builder

August 10, 2010
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Jacksonville, Florida – Marshall Craig Scott was found guilty of committing mail fraud, wire fraud, and conspiracy to commit mail fraud. Scott faces a maximum penalty of 145 years in federal prison. The sentencing hearing is scheduled for June 24, 2010. Scott was indicted on October 29, 2009.

Scott was one of four conspirators who schemed to defraud a variety of lending institutions in connection with residential home mortgages. Scott was one of three owners of American Home Builders, Inc. (AHB), who participated in a scheme to trick lending institutions into lending money to fund the purchases of new homes built by AHB.

Evidence established that the “extra money” extended by the…

Big Plan to Cut Mortgage Debt Reveal by Bank of America

July 28, 2010
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Bank of America stated that it would trim down mortgage-loan balances in so far as 30% for thousands of troubled borrowers, in what could foretell a wider government effort to encourage banks to offer debt reduction to ease the mortgage crisis.

The plan is one of the boldest moves so far to address the dilemma of millions of U.S. homeowners who owe more on their homes than they are worth. It would make it easier for the Obama administration to move in a similar direction with its present loan-modification program, though senior government officials and many bankers remain very cautious of offering to cut loan balances as the main way of…

Mortgage Rates Stuck at 4.75

July 25, 2010
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According to a rate research website, the conventional 30-year fixed mortgages are available at 4.75% for well-qualified consumers that pay a standard .07 to 1 point.

Today’s 15-yr fixed rate is 4.125%, and the 5/1 ARM rate 3.625.

The FHA mortgage rates continue to mirror those of conventional loans. Whereas FHA loans do offer similar rates, the closing cost associated with those rates is significantly higher. The 30-year fixed jumbo loans are available at 5.625% with little better rates (5.5) for borrowers with an extremely low LTV. Mortgage-backed securities prices that drive mortgage rates in the opposite direction have been flat in the month of March.

In just a week until the much…

A Multi-Million-Dollar Mortgage Fraud Scam Sends a Broker in Prison

July 9, 2010
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Bethesda, Maryland - Michael Milan was sentenced to 108 months in prison, pursued by three years of supervised release, for his role in carrying out a multi-million-dollar mortgage fraud scheme. He was also ordered to pay restitution of $3,141,409 and to forfeit $1,061,890 in proceeds he got hold of.

Milan was a consultant to various mortgage brokerage companies and connived with others to defraud mortgage lenders into lending funds for the purchase and refinance of residential properties. Milan caused his associates to prepare false mortgage applications which contained false information about the income and assets of the borrowers. Some of the mortgage applications falsely claimed that the borrowers earned hundreds of…

Home Loss has Its Consequences

July 9, 2010
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Financially distraught homeowners must consider choices that have both tax and credit implications and not only face the painful personal circumstances.

In recent times, the legal department of the California Association of Realtors® (CAR) issued a memorandum titled “Credit After Foreclosure, Bankruptcy, or Short Sale,” it is a very useful document for those who have questions about how credit is affected by the various ways in which one might lose his or her home.

The memo is basically based on the 2008 update of Fannie Mae guidelines (Fannie Mae Announcement 08-16), so it should be clear that the explanations are not completely general or unqualified.

For instance, it is said that a person…

Nearly 17 Years of Imprisonment for a Fraudster

June 21, 2010
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Haiti – Mario G. Bernadel was sentenced to nearly 17 years in prison for his conviction on multiple counts for leading a mortgage fraud scheme in Phoenix, Arizona that cost banks over $9 million.

In September 2009, Bernadel was found guilty by a jury on 19 counts related to mortgage fraud that includes mail, wire, bank fraud, and transactional money laundering. Bernadel led a two-year conspiracy involving the purchase of 37 properties using fraudulent loan documents and receiving cash back at closing.

Seven co-conspirators were also charged and have pleaded guilty for their involvement in the conspiracy and many will be sentenced in the next few months.

The case in opposition to Bernadel…