California Real Estate Fraud Report

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Long Beach Mortgage Sales Executive Convicted in Mortgage Fraud

This is yet another tale of a mortgage professional who has probably ruined his life by being greedy and getting caught.

Joel Blanford, 44, worked as a sales executive at Long Beach Mortgage, the subprime lending unit of Washington Mutual (WaMu). was found guilty on September 19 of six counts of mail fraud. Blanford bribed a loan coordinator (with cash and checks!) in exchange for the coordinator falsifying loan documents and looking the other way to fraudulent loan applications. For this, Blanford earned over $1 million in sales commissions from 2003-2005.

The case is U.S. v. Blanford, 08-00269, U.S. District Court, Eastern District of California (Sacramento) and it was prosecuted by the office of U.S. Attorney Benjamin Wagner. Joel Blanford’s attorney is Michael Cardoza.

Here is an eye-popping statistic: Long Beach Mortgage was forced to buy back $875 million of its non-performing “toxic” loans from investors in 2005 and an internal audit that same year revealed that 83% (4 out of 5) of the loans the Montebello office had approved were fraudulent (loan fraud, mortgage fraud).

No wonder WaMu went bankrupt in September 2008.

Read the original article in the Businessweek.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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