California Real Estate Fraud Report

You have just entered the #1 private-sector resource on the Internet for real estate fraud. In doing so, you have voluntarily left the dimension of the conventional real estate world and crossed over to the Dark Side, the realm where greed, dishonesty and evil are the order of the day. Sign up for a free subscription to this comprehensive news resource and receive weekly, timely news reports about real estate fraud, mortgage fraud, short sale fraud, REO fraud, title fraud, loan fraud, appraisal fraud, affinity fraud, loan modification scams, securities fraud and elder financial fraud.


US Dept. of Justice Sues Wells Fargo for Mortgage Fraud

On behalf of taxpayers, Manhattan U.S. Attorney Preet Bharara has brought a civil action against Wells Fargo, accusing the lending giant of lying and concealing the poor quality of loans it certified for backing by the FHA. FHA loans that fail (foreclose) are the responsibility of the U.S. Department of Housing and Urban Development to reimburse the bank. In other words, there is no downside to writing a bad loan, which in this lawsuits, Bharara assets involved 6,320 mortgages.

According to the complaint that was filed in Manhattan federal district court, from January 2002 through December 2010, Wells Fargo deliberately concealed the findings of its own risk department that the FHA loans were “seriously deficient.” One of Wells’ own employee determined there was a “a dirty underbelly of bad loan officers.” The lawsuit further alleges that the bonus “incentive” plan that Wells Fargo had set up, was a prescription for disaster because it rewarded employees based on the volume of loans they produced without regard for the quality.

The purpose of FHA government-backed loans is to make home loans available to moderate and lower-income borrowers who would be able to qualify without the programs.

Citigroup, Flagstar Bank, Bank of America, Deutsche Bank and FBC have already reimbursed the FHA $1 billion after their own similar legal settlements.

Read the original article in the Huffington Post.

© Copyright 2007-2017 Monique Bryher

Legal Disclaimer.

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.

ALL RIGHTS RESERVED. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the author, except for the inclusion of BRIEF QUOTATIONS in a review.


Copy Protected by Chetan's WP-Copyprotect.