Housing and Mortgage Fraud
This archive displays posts tagged as relevant to housing and mortgage fraud. You may also be interested in the following pages:
November 20, 2018
Peter Cash Doye and Raquel Reid were convicted for defrauding lenders into providing over $50 million in loans purportedly secured by four multi-million dollar mansions in La Jolla and Del Mar, California. Doye, an executive at several real estate investment firms, and Reid, a broker, created forged real estate lien “releases” and recorded fraudulent records at the San Diego County Recorder’s Office to make it appear that the loans had been paid off so they could obtain additional loans from new lenders. Reid notarized the forged documents, helping to make the fraudulent paperwork appear authentic. USAO S.D. Cal.November 8, 2018
The United States has brought charges against UBS AG and several of its affiliates, alleging that UBS defrauded investors in connection with its sale of residential mortgage-backed securities (RMBS) in 2006 and 2007. The complaint accuses UBS of affirmatively misleading investors and withholding crucial information from them about the quality of billions of dollars in subprime and Alt-A mortgage loans backing 40 RMBS deals. USAO EDNY; DOJCatch of the Week — Universal American Mortgage Company
Posted 10/19/18
October 19, 2018
Settling a case brought by a whistleblower, mortgage lender Universal American Mortgage Company will pay $13.2 million to the United States. UAMC acted as a direct endorsement lender in the Federal Housing Administration insurance program, originating and underwriting mortgages with FHA insurance. Because the federal government is liable for FHA loans that default, DELs such as UAMC are required to follow underwriting and quality control rules in issuing mortgages; UAMC allegedly did not follow those rules and knowingly submitted loans for FHA insurance that did not qualify. The whistleblower, Kat Nguyen-Seligman, a former employee of a UAMC related entity, will receive $1,980,000 from the settlement. DOJ; USAO W.D.Wa.October 16, 2018
Nomura Holding America Inc. and its affiliates have agreed to pay a civil penalty of $480 million to settle claims that it knowingly misled investors of its residential mortgage-backed securities (RMBS) in the years leading up to the financial crisis of 2008. From 2006 to 2007, Nomura allegedly marketed falsely to investors that its due diligence process was "industry leading," despite knowing that many of the loans it sold did not comply with regulations, or had not even gone through their due diligence process. Among the investors defrauded were Fannie Mae, Freddie Mac, retirement funds, and university endowments. USAO EDNYOctober 9, 2018
HSBC will pay a $765 million civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) to settle claims that it misrepresented the quality of assets in residential mortgage-backed securities (RMBS) that HSBC packaged and sold to investors between 2005 and 2007. HSBC was also alleged to have misrepresented the due diligence procedures it followed in reviewing loans for securitization, claiming to follow more stringent procedures than it actually did follow. USAO Colorado.Catch of the Week: RBS Agrees to Pay $4.9 Billion
Posted 08/17/18
