Four People Charged in Reverse Mortgage and Loan Modification Scheme
Three loan officers and a title agent were charged in $2.5 million reverse mortgage and loan modification scheme with conspiracy to commit wire fraud. This scheme involved defrauding elderly borrowers, financial institutions and the Department of Housing and Urban Development. Reverse mortgages are a financial product that allows homeowners 62 and older to tap into their home equity to pay their living expenses. But the loan officers and title agent altered real estate appraisals to fraudulently inflate the value of the borrowers properties. According to prosecutors the borrowers didn't have enough equity to qualify for reverse mortgages.
Genworth Financial Home Equity Access, Inc., the company the borrowers refinanced with, believed the appraisals and approved loans for 14 properties in 6 states in 2009 and 2010 and paid out $2.5 million. The defendants used a loan modification scheme to hide the reverse mortgages from the original mortgage lenders and did not payoff the original loans. In some cases, the four created fictitious short sale offers to purchase some of the properties.
The defendants appeared in court on Wednesday to face the charges. This type of mortgage fraud carries with it up to 30 years in federal prison and fines of up to $1 million. They are all going to need a good federal lawyer to represent them in federal court.
If you or someone you know is facing a federal indictment please call one of our federal criminal attorneys at The Mace Firm to schedule a free consultation. Our federal lawyers are here to defend you against any criminal charges. The federal defense attorneys at The Mace Firm understand that life can be very stressful when facing criminal charges.
