Mortgage Matinee Time- Art Garfunkel - 10/31/11 02:19 PM
Here's a great song from Artie for your lunchtime. Sell lots of homes and have a great week ahead, everyone, everywhere.
-David- … (0 comments)

OWNER OF TITLE AGENCY PLEADS GUILTY TO STEALING APPROXIMATELY $5 MILLION IN MORTGAGE PAYOFFS FROM CLOSING - 10/31/11 02:00 PM
Owner of Gambrills’ Title Agency Pleads Guilty to Stealing Approximately $5 Million in Mortgage Pay-Offs from Closings Attempted to Conceal the Fraud Scheme by Making Monthly Mortgage Payments to the Original Lenders Whose Mortgages Should Have Been Paid Off   BALTIMORE, MD—Gary Pierce, age 44, of Edgewater, Maryland, pleaded guilty today to conspiracy to commit wire fraud in connection with a five year scheme to divert or hold mortgage payoff funds from clients’ closings on 17 Maryland properties. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. … (4 comments)

Real Estate Practice : Lesson 1380 - 10/31/11 12:31 PM
                                                          #1380
An appraisal, the expert opinion by a professional appraiser, is performed at a particular date and time in order to rend an estimate of value of a piece of real estate.
The appraisal is based on a detailed analysis of the many and varied features of a property.
Is this fact considered to be true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. True
… (0 comments)

Real Estate Practice : Lesson 1379 - 10/31/11 12:28 PM
                                                                 #1379                                              Anticipation is an appraisal theory that believes that value is something which is created by inflation. Is this fact true or false ?
Take your time. The soultion is posted below the wildlife photo.

A. False
Anticipation is a principle of appraisal theory and practice which maintains that value will be created by the expectation of benefits to be received at some future time.
… (0 comments)

Real Estate Practice : Lesson 1378 - 10/31/11 12:26 PM
                                                         #1378
Ammortization is the process of paying off a short term loan which will end with the payment of a final installment known as a balloon.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
Amortization is the process of paying off a loan in gradual installment payments that include both interest on the loan amount and a portion of the principal amount of the loan.
… (0 comments)

Real Estate Practice : Lesson 1377 - 10/31/11 12:24 PM
                                                     #1377
An alienation clause is an item or provision included in a security instrument whcih will allow a lender to sell a home in a short sale if the borrower defaults on the loan.
Is this fact true or false ?
Take your time. The solution is posted below the wildlife photo.

A. False
An alienatation clause will allow the lender to accelerate the loan if the borrower transfers or sells the property without the lender's approval.
… (0 comments)

Real Estate Practice : Lesson 1376 - 10/31/11 12:21 PM
                                                              #1376
After someone has signed a document and formally declares to a public official, like a notary, that they have signed the document voluntarily and without any coercion, this is known as longanimity of a truthful attestation.
Is this fact true or false ?
Please take your time. The soultion is posted below the wildlife photo.

A. False
This is known as an acknowledgement.
… (0 comments)

Real Estate Practice : Lesson 1375 - 10/31/11 12:18 PM
                                                       #1375
Deferred interest is the transfer of interest or ownership in a property from one party to another.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
Alienation is the transfer of interest or ownership in a property from one party to another.
 
 
… (0 comments)

Real Estate Practice : Lesson 1374 - 10/31/11 12:15 PM
                                                      #1374
Expenses that have been applied but have not yet become due and payable, and seller's accrued expenses that are credited to the buyer at closing, are known as accrued items of expense.
Is this fact true or false ?
Please remember to take your time. the solution is posted below the wildlife photo.

A. True
… (0 comments)

Real Estate Practice : Lesson 1373 - 10/31/11 12:12 PM
                                                     #1373
A principle which is considered under appraisal guidelines that holds that value may be created by the expectation of benefit to be received at some future point and time is known as the Principle of Anticipation.
Is this fact considered to be true or false ?
Remember to take your time. The solution is posted below the wildlife photo.

A. True
… (0 comments)

Real Estate Practice : Lesson 1372 - 10/31/11 12:10 PM
                                                         #1372
An item in an instrument used for the security of a home purchase that will allow the lender to declare the entire debt of the loan due and payabe immediately if the borrower defaults or breaches the agreement is known as the Principle of Anticipation.
Is this fact true or false ?
Please take your time. The soultion is posted below the wildlife photo.

A. False
The item used in the instrument for the security of the home purchase if the borrower defaults or breaches the loan is known as an acceleration clause.
… (0 comments)

Real Estate Practice : Lesson 1371 - 10/31/11 12:08 PM
                                                     #1371
Acceleration is the process of declaring an entire loan balance due because a borrower defaulted on the loan or, if there is an alienation clause in the loan, the borrower sold the home without the lender's approval.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. True
… (0 comments)

Nite Music for Tired Realtors - Art Garfunkel - 10/30/11 02:30 AM
Time for a nice song. Hope you enjoy this one from Artie while you respite from realty. <.center> … (6 comments)

Why I Don't Use Facebook - Never Have - Never Will - Part 2 - 10/29/11 03:00 PM

I don't use F'book, never have, and refuse to, as most of you know, and recently stumbled upon an unfolding of half-wits by accident.
It begins with a reprobate who calls himself a "Jimmy Mackin", or something like that, and a throng of deliberately offensive fulminations tightly crammed into a morons circle.
He compares me to Hannibal Lector in an opening reply to one of his crony misfits. Why ?


My original post in ActiveRain (click here) ruffled little Jimmy's feathers, therefore he resorted to gang warfare to illuminate his poor ability to understand.
Cyber bullies don't deal with you man to man … (12 comments)

Nite Music for Tired Realtors - The Carpenters - 10/28/11 10:54 PM
Time for a break. Have a great weekend, everyone, everywhere.
-David- … (8 comments)

MAN PLEADS GUILTY TO RECEIPT OF COMMISSIONS OR GIFTS IN PROCURING MORTGAGE LOANS - 10/28/11 06:23 PM
South Carolina Man Pleads Guilty to Receipt of Commissions or Gifts in Procuring Loans COLUMBIA, SC—United States Attorney Bill Nettles stated today that Matthew Skinner, age 36, of Pawley’s Island, South Carolina, pled guilty today in federal court in Florence, to receipt of commissions or gifts for procuring loans, a violation of Title 18, United States Code, Section 215.   United States District Court Judge Terry L. Wooten accepted the plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office. Evidence presented at the guilty plea hearing established that Mr. … (3 comments)

Cities Where Homes Don't Sell - 10/28/11 04:58 PM
I picked this article up on the web from 247WallStreet.Com.
Illuminating or irritating ?
Click the fiddler...

… (2 comments)

REAL ESTATE EXECUTIVE & COMPANY CHARGED WITH ILLEGAL CAMPAIGN CONTRIBUTIONS - CHARGED WITH VIOLATING FEDERAL ELECTION CAMPAIGN ACT - 10/28/11 04:40 PM
Real Estate Executive and Company Charged with Making Illegal Campaign Donations Arthur Winn and Winn Columbus Center Limited Partnership Charged with violating Federal Election Campaign Act   BOSTON—A Boston-based real estate executive and the real estate development company in which he was a partner were charged in federal court today with causing illegal campaign contributions in violation of the Federal Election Campaign Act. ARTHUR WINN, 72, of Brookline, and WINN COLUMBUS CENTER LIMITED PARTNERSHIP were charged today with multiple violations of violating the Federal Election Campaign Act’s prohibitions on making campaign contributions in the names of strawmen or conduits.
If convicted … (0 comments)

EIGHT REAL ESTATE INVESTORS AGREE TO PLEA GUILTY TO BID RIGGING - 10/27/11 10:05 PM
Eight Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure Auctions Investigation Has Yielded 18 Plea Agreements to Date   WASHINGTON—Eight Northern California real estate investors have agreed to plead guilty today for their roles in two separate conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced. Charges were filed today in U.S. District Court for the Northern District of California in San Francisco against
Gary Anderson of Saratoga, Calif.;
Patrick Campion of San Francisco;
James Doherty of Hillsborough, Calif.; … (0 comments)

LEADER OF $200 MILLION REAL ESTATE INVESTMENT SCAM CHARGED - DEFRAUDED JEWISH COMMUNITY & INVESTORS NATIONALLY & ABROAD - 10/27/11 09:46 PM
Leader of $200 Million Real Estate Investment Scam Charged in 45-Count Indictment with Fraud and Money Laundering Alleged Scheme Defrauded Investors in Multiple States and Abroad   NEWARK, NJ—Eliyahu Weinstein, a/k/a “Eli Weinstein,” a/k/a “Edward Weinstein,” a/k/a “Eddie Weinstein,” was indicted today by a federal grand jury in Newark on charges alleging he ran an investment fraud scheme causing losses of at least $200 million, New Jersey U.S. Attorney Paul J. Fishman announced. The 45-count Indictment charges Weinstein, 36, of Lakewood, N.J., with one count of conspiracy to commit wire fraud, 29 counts of wire fraud, two counts of wire fraud … (2 comments)

DEVELOPER GUILTY OF FRAUD IN THE DEVELOPMENT OF THE EAST ST. LOUIS BOWMAN ESTATES PROJECT - 10/27/11 09:29 PM
Developer Guilty of Fraud in the Development of the East St. Louis Bowman Estates Project   A Clayton developer pled guilty in U.S. District Court on October 27, 2011, for his role in the failed Bowman Estates construction project, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.   Harold Rosen, age 80, was indicted by a federal grand jury on January 21, 2011, for attempting to obtain more than $1.9 million of public financing under false pretenses. As part of his plea, Rosen admitted that he provided cash payments and a promise of future … (0 comments)

Real Rock for Realtors® - Don Cherry's "Band of Gold" - 10/27/11 04:27 AM
Time for a morning break from beeeznus with a great tune. … (2 comments)

MULTI-PURPOSE LAND DEVELOPER SENTENCED TO FIVE YEARS IN PRISON FOR FRAUD AND MISAPPROPRIATION OF INVESTOR FUNDS - 10/26/11 01:35 PM
Man Sentenced for Real Estate Investment Scam Collins “Collie” Max Christensen, 53, Sacramento, California, was sentenced to five years in prison, to be followed by three years of supervised release, for wire fraud related to his misappropriation of investor funds that were intended for real estate development.  According to court documents, Christensen managed several companies, such as Equus 11 Inc., that were used for multipurpose land development projects located in California, Mississippi, and Cabo San Lucas, Mexico.
From 2006 through 2008, Christensen raised more than $2.3 million from 14 investors for these projects.
Christensen misappropriated approximately $985,994 of the $2.3 million, spending the … (2 comments)

ATTORNEY AND MORTGAGE BROKER PLEAD GUILTY TO MORTGAGE FRAUD - GOVERNMENT BELIEVES MORE THAN 200 FRAUDULENT MORTGAGES WERE FUNDED - 10/26/11 01:29 PM
Two Admit Participating in Mortgage Fraud Scheme Maurizio Lancia, 48, Trumbull, Connecticut, pleaded guilty to one count of wire fraud, and Stacey Petro, also known as Stacey Moises, 37, Branford, Connecticut, pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud for their roles in a southeastern Connecticut mortgage fraud scheme. According to court documents and statements made in court, Lancia, a licensed attorney and licensed mortgage broker, controlled and operated Royal Financial Services, LLC, and Petro, a licensed mortgage broker, controlled and operated First Source Mortgage Solutions, Inc.
From approximately 2004 to 2007, Lancia, Petro, Jose Guzman, William Athan and … (0 comments)

LOAN OFFICER SENTENCED TO TWO YEARS IN THE SLAMMER FOR DEFRAUDING LENDERS - 10/26/11 01:09 PM
Loan Officer Sentenced for Defrauding Lenders Jaco Huguet, 29, Arizona, a former loan officer who worked in the metropolitan-Phoenix area, was sentenced by U.S. District Court Judge Frank Zapata to 24 months in federal prison. As part of his sentence, Huguet was also ordered to pay over $500,000 in restitution. On July 1, 2011, Huguet previously pleaded guilty to one count of Conspiracy to Commit Wire Fraud and one count of Conspiracy to Commit Transactional Money Laundering.Indicted on June 16, 2010, with nine other defendants, the case against Huguet demonstrated that while acting as a loan officer for an Arizona mortgage broker, Huguet … (0 comments)

TWO FROM CALIFORNIA INDICTED FOR $8.5 MILLION MORTGAGE FRAUD IN MISSOURI - 10/26/11 12:43 PM
2 Californians Indicted for Missouri Mortgage Fraud Scheme <!-- Date created --> Robert Charles Ramirez, 37, Salinas, California, and William Troy Goings, 36, Sacramento, California, were charged in a 20-count indictment returned by a federal grand jury in Kansas City, Missouri, for their alleged roles in a mortgage fraud scheme that defrauded a Missouri bank of more than $8.5 million.
  The indictment alleges that Ramirez and Goings defrauded American Sterling Bank, Sugar Creek, Missouri, in a mortgage fraud scheme that lasted from Oct. 11, 2006, to Jan. 18, 2007. American Sterling Bank was closed on April 17, 2009.
According to the indictment, Ramirez … (0 comments)

MORTGAGE RESTRUCTURE SCAM HALTED - 10/26/11 12:27 PM
Mortgage Restructure Scam Halted James G. “Jay” Temme and Stewardship Fund LP allegedly raised at least $35 million since 2008 from various investor groups falsely telling investors he was using their money to buy and restructure pools of non-performing home mortgages in the wake of the housing market’s decline. The SEC has obtained an emergency court order to freeze the assets of a Texas resident and his company charged with falsely telling investors he was using their money to buy and restructure pools of non-performing home mortgages in the wake of the housing market’s decline.
To lure investors, Temme developed relationships with … (0 comments)

OWNER OF TITLE COMPANIES PLEADS GUILTY TO STRAW BUYER SCAM - 10/26/11 12:20 PM
Owner of Title Companies Admits Mortgage Fraud Scheme Stephen J. Troese, Sr., 72, Davidsonville, Maryland, pleaded guilty to wire fraud arising from a scheme to defraud lenders and a title insurance company of at least $937,183. The government contends the loss is between $2.5 million and $7 million. The exact amount of the loss will be determined at sentencing.   According to his plea, Troese practiced as a title attorney and was variously an owner, part owner, or the controlling figure of a number of title companies that did business in the Baltimore, Annapolis, and Washington, D.C. metropolitan areas, including Troese Title Services, … (0 comments)

FORMER LOAN OFFICER PLEADS GUILTY TO STRAW BUYER SCAM - 10/26/11 12:17 PM
Former Loan Officer Pleads Guilty to Straw Buyer Scam Juan Carlos Hernandez, 42, West Warwick, Rhode Island, a former loan officer with National City Mortgage Company, pleaded guilty in U.S. District Court in Providence, R.I., to his role in a "straw-borrowing" scheme that netted more than $3.5 million in fraudulently obtained mortgages on 13 properties in five Rhode Island communities. All of the properties were eventually foreclosed upon by the banks holding the mortgages.   Hernandez was named along with two others in a 13-count federal grand jury indictment returned on May 24, 2011. Miguel Valerio, 52, Providence, R.I., a former loan … (4 comments)

FORECLOSURE RESCUER PLEADS GUILTY TO SWINDLING 1800 VICTIMS OUT OF UP-FRONT FEES FOR BOGUS PROMISES - 10/26/11 11:40 AM
Foreclosure Rescuer Admits Defrauding 1,800 Victims Luis Belevan, 34, Phoenix, Arizona, pleaded guilty in federal court to conspiring to commit wire fraud and mail fraud. Belevan and his co-conspirator, were charged with defrauding at least 1,800 local distressed homeowners out of a $1,595 up-front fee for bogus promises of assistance in avoiding home foreclosure in 2009 and 2010.       Belevan admitted in his guilty plea proceedings to telling homeowners who were unable to make their mortgage payments that his company, The Guardian Group, would purchase and refinance their mortgages based on the lower property values that followed the housing market crash of … (6 comments)

MAN PLEADS GUILTY TO NEW MEXICO MORTGAGE FRAUD SCAM - 10/26/11 01:38 AM
Man Pleads Guilty to New Mexico Mortgage Fraud Scam Manuel Garcia, 69, who now resides in Los Angeles, California, entered a guilty plea to an indictment charging him with six counts of bank fraud. At sentencing, which has yet to be scheduled, Garcia faces a maximum sentence of 30 years' imprisonment, five years of supervised release, and a $1,000,000 fine.  Under the terms of his plea agreement, Garcia will pay restitution in the amount of $585,243.59 to US Bank of Albuquerque, formerly known as First Community Bank (FCB). Garcia remains on conditions of release under pretrial supervision pending his sentencing hearing.  … (4 comments)

BUSINESSMAN PLEADS GUILTY TO REAL ESTATE INVESTMENT FRAUD - 10/26/11 01:09 AM
Businessman Admits Real Estate Investment Fraud David A. Nilsen, 61, Seaside, California, pleaded guilty in federal court in San Jose, California, to conspiracy to commit mail and wire fraud. In pleading guilty, Nilsen admitted to deceiving investors in his Monterey, California-based private money lending company, Cedar Funding, and agreed to pay $69,828,833 in restitution.  Cedar Funding, founded by Nilsen in 1980, connected residential real estate developers seeking to borrow money using real property as collateral with individual investors who were willing to make such loans. 
In the plea agreement, Nilsen admitted that, from 2004 through 2008, an increasing number of borrowers defaulted … (8 comments)

Music For Your Heart - Count Your Blessings - 10/25/11 11:38 PM
I want to share this song with all of my friends.
May the days ahead be bright, beautiful and filled with love.
David … (0 comments)

WOMAN SENTENCED TO NINE YEARS IN FEDERAL PRISON FOR RUNNING REAL ESTATE INVESTMENT SCHEME THAT RAISED NEARLY $7 MILLION - 10/25/11 07:53 PM
West Covina Woman Sentenced to Nine Years in Federal Prison for Running Investment Scheme That Raised Nearly $7 Million   LOS ANGELES—A West Covina woman who admitted running a Ponzi scheme that took in approximately $6.9 million from more than 150 victims has been sentenced to 108 months in federal prison. Guadalupe Valencia, 47, was sentenced late yesterday by United States District Judge S. James Otero after a nearly five-hour hearing.
In addition to the nine-year prison term, Judge Otero ordered Valencia to pay restitution of $5.2 million, which is the total loss figure.
Valencia has been in custody since … (4 comments)

Friday Is the Best Day to List - 10/25/11 02:47 AM
What's the Best Day to List ?
After analyzing 1.2 million listings in 16 markets across the country for 21 months, Redfin found that sellers have a better chance of moving their homes off the market if they list them on a Friday.
The brokerage's study indicates that Friday listings were 12 percent more likely to change hands within 90 days.
Additionally, 94.4 percent of properties listed on a Thursday or Friday sold for close to the list price.

In contrast, only 93.3 percent of those listed on a Sunday or Monday sold for close to the list price.
… (7 comments)

Piano In The Rain - 10/25/11 02:04 AM
Time for a break from business and a cup of coffee. … (2 comments)

HARP or HARPY ? The Obama Mortgage Rescue Plan Is Impossible - 10/25/11 01:08 AM
Government regulators are revising an existing program, the Home Affordable Refinance Program, HARP, which has pretty much been a disaster since being introduced in early 2009.
To date, it’s reached 822,000, less than a tenth of whom have been negam (negative amortized) borrowers.
It was projected to assist 5 million borrowers, most of whom either haven't found out about it or didn't give a flip (no pun intended).

Most underwater borrowers haven't been permitted to refinance. Many are still paying high interest rates. 
By the way, it only applies to Freddie or Fannie loans. Conventional got canned in the deal, as well as other types … (2 comments)

New Program To Help Underwater Home Owners - 10/24/11 04:35 PM
New Program To Help Underwater Owners
The federal government on Monday announced new rules that would allow many more struggling borrowers to refinance their mortgages at today's ultra-low rates, reducing monthly payments for some homeowners and potentially providing a modest boost to the economy. The Federal Housing Finance Agency, working with the Obama administration, said that up to 1 million "underwater" borrowers might benefit from an expanded program that targets homeowners who owe more than their properties are worth.

But the program might not have a major impact on the economy. There are about 11 million underwater borrowers in the … (0 comments)

Contract Failures According to NAR - 10/24/11 04:20 PM
Contracts and Constricts
Contract failures were reported by 18 percent of NAR members in September, unchanged from August; they were 9 percent in September 2010.
Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including home inspections and employment losses.
Contract failures were reported by 18 percent of NAR members in September, unchanged from August; they were 9 percent in September 2010.
Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, … (0 comments)

Real Estate Practice : Lesson 1370 - 10/24/11 03:40 PM
                                                       #1370
This phrase, "If you have great credit you could get great loan terms", would red flag the requirement under the Truth In Lending Act or TILA.
True or False ?
Take your time. The solution is posted below the wildlife photo.

A. False
This is a general statement because loan terms are not included in the body of the statement.
Disclosure of the finance charge and annual percentage rate would be required under TILA if loan terms were disclosed in the body of the statement.
… (0 comments)

Real Estate Practice : Lesson 1369 - 10/24/11 03:22 PM
                                                          #1369
A federal law that prohibits lenders from making high cost predatory home equity loans is known as Equal Credit Opportunity Act or the ECOA.
Is this fact true or false ?
Please take your time. The solution is below the wildlife photo.

A. False
The federal law that prohibits lenders from making hgh-cost predatory home equity loans is known as the Home Ownership and Equity Protection Act, or HOEPA.
… (0 comments)

Real Estate Practice : Lesson 1368 - 10/24/11 03:20 PM
                                                       #1368
Loan flipping is prohibited under the Real Estate Settlement Procedures Act.
Is this fact true or false ?
Please take your time the solution is posted below the wildlife photo.

A. False
The Real Estate Settlement Procedures Act or RESPA is not concerned with loan flipping
Solicited tip flipping, maybe :-)
RESPA would be concerned with an illegal kickback.
HUD.Gov can tell you more about RESPA.
 
… (0 comments)

Real Estate Practice : Lesson 1367 - 10/24/11 03:17 PM
                                                             #1367
When we talk about an impound waiver we're discussing a practice that involves charging points or processing fees that are out of the ordinary.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
This is known a s fee packing, once again.
… (0 comments)

Real Estate Practice : Lesson 1366 - 10/24/11 03:15 PM
                                                      #1366
Steering involves charging a borrower processing fees or points to close that are higher than usual because the lender is steering the borrower away from a conventional loan.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
Fee Packing is the practice of charging the borrower excess processing fees or higher than usual points.
Steering violates fair housing laws by directing a client to an area occupied by a protected class.
 
… (0 comments)

Real Estate Practice : Lesson 1365 - 10/24/11 03:11 PM
                                                         #1365
A loan secured by a fleet of tractors to purchase additional farm equipment would be covered under the Truth In Lending Act.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
The Truth In Lending Act excludes loans made for agricultural purposes.
… (0 comments)

Real Estate Practice : Lesson 1364 - 10/24/11 03:09 PM
                                                                                     #1364
Property flipping will involve the charging of processing fees that are not necessary for the services provided by the lender.
Is this true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
Fee Packing is the charging of unnecessary fees for the processing of a loan.
 
… (0 comments)

Real Estate Practice : Lesson 1363 - 10/24/11 03:03 PM
                                                                                 #1363
Fee Packing is a predatory lending practice which imposes the practice of charging points and fees for processing a loan that are out of the ordinary and higher than normally charged.
These are fees that have no reason to be included in the processing of the loan.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. True
… (0 comments)

Real Estate Practice : Lesson 1362 - 10/24/11 03:00 PM
                                                  #1362
An unsecured loan for 50 thousand dollars would be covered by the Truth In Lending Act.
Is this fact true or false ?
Please take your time. The solution is below the wildlife photo.

A. False
The Truth In Lending Act excludes consumer loans not secured by real property that are in excess of 25 thousand dollars.
Seller financing is also excluded, as are loans for business or agriculture.
See what you can discover about the Truth In Lending Act (TILA).
… (0 comments)

Real Estate Practice : Lesson 1361 - 10/24/11 02:58 PM
                                                  #1361
Another purpose of the Home Mortgage Disclosure Act is to insure that a person, whose income is derived from public assistance, is not discriminated against.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
The purpose of the Home Mortgage Disclosure Act is to require lenders to disclose information that may provide evidence of redlining.
The Equal Credit Opportunity Act addresses the discrimination of a person whose income is derived from public assistance.
… (0 comments)

SUNDAY SERENADE - The Alan Parsons Project - 10/23/11 07:50 PM
The Year Was 1981. Time to get away from business for a couple of minutes. … (0 comments)

Serenade Time - Todd Rundgren - 10/21/11 10:06 PM
Here's a lovely song to enjoy while snacking on warm oatmeal by the fire.
 
… (0 comments)

TWO CALIFORNIA MEN INDICTED FOR $8.5 MILLION MORTGAGE FRAUD SCHEME - 10/21/11 09:55 PM
  Two California Men Indicted for $8.5 Million Mortgage Fraud Scheme   KANSAS CITY, MO—Beth Phillips, United States Attorney for the Western District of Missouri, announced that two California men were indicted by a federal grand jury today for a mortgage fraud scheme that defrauded a failed Sugar Creek, Mo., bank of more than $8.5 million. Robert Charles Ramirez, 37, of Salinas, Calif., and William Troy Goings, 36, of Sacramento, Calif., were charged in a 20-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Ramirez and Goings defrauded American Sterling Bank in Sugar Creek … (2 comments)

FORMER BANK PRESIDENT AGREES TO PLEAD GUILTY IN MULTI-MILLION -DOLLAR BANK FRAUD CONSPIRACY AND PERJURY IN HIS PERSONAL BANKRUPTCY CASE / CONNER FLEECED FAILED STOCKBRIDGE BANK AND AT LEAST TEN OTHER FEDERALLY INSURED BANKS - 10/21/11 08:53 PM
Former Bank President Agrees to Plead Guilty in Multi-Million-Dollar Bank Fraud Conspiracy and Perjury in His Personal Bankruptcy Case Conner Fleeced Failed Stockbridge Bank and at Least Ten Other Federally Insured Banks   ATLANTA—MARK A. CONNER, 45, formerly of Canton, Georgia, and Tallahassee, Florida, and the former president of FirstCity Bank of Stockbridge, Georgia, pleaded guilty today to charges of conspiracy to commit bank fraud in connection with misconduct at FirstCity Bank in the years before the bank’s seizure by state and federal authorities on March 20, 2009. CONNER also pleaded guilty to perjury in connection with his personal bankruptcy filing … (6 comments)

MATINEE TIME - THE KORGIS - 10/21/11 03:38 PM
Time for a music break … (0 comments)

SIXTH GUILTY PLEA IN CONNECTION WITH SCHEME TO FRAUDULENTLY CONTROL CONDOMINIUM HOMEOWNERS' ASSOCIATIONS - 10/21/11 03:29 PM
Sixth Guilty Plea in Connection with Scheme to Fraudulently Control Condominium Homeowners’ Associations   WASHINGTON—A California man pleaded guilty today for his role in a scheme to fraudulently gain control of condominium homeowners’ associations (HOA) in the Las Vegas area so that the HOAs would direct business to a certain law firm and construction company, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, Special Agent in Charge Kevin Favreau of the FBI Las Vegas Field Office, Sheriff Doug Gillespie of the Las Vegas Metropolitan Police Department and Special Agent in Charge Paul Camacho of the Internal Revenue Service-Criminal … (2 comments)

Nite Music - Billy Joel - 10/21/11 12:23 AM
No showings after 6....only virtual tours....and they last forever now....
Thousands of agents resigning with board fee increases and license renewals due...
Hope you can hold on....
-David-
 
… (4 comments)

OWNER OF TITLE COMPANIES PLEADS GUILTY TO MORTGAGE FRAUD - 10/21/11 12:00 AM
Owner of Title Companies Pleads Guilty in Mortgage Fraud Scheme   BALTIMORE—Stephen J. Troese, Sr., age 72, of Davidsonville, Maryland, pleaded guilty today to wire fraud arising from a scheme to defraud lenders and a title insurance company of at least $937,183.   The government contends the loss is between $2.5 million and $7 million. The exact amount of the loss will be determined at sentencing. The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation.
According to his plea, … (0 comments)

BULLETIN : MUAMMAR GADDAFI DEAD - UN SECRETARY- GENERAL CONFIRMS DEATH - 10/20/11 01:54 PM

On 20 October 2011, THIS MORNING, the media reported that a National Transitional CounciL (NTC) official had told Al Jazeera that Gaddafi haD been captured by Libyan forces near his hometown of Sirte Gaddafi was reportedly found by NTC forces hiding with several of his bodyguards in a drain underneath a road west of the city. He took refuge there after being targeted by a NATO airstrike while attempting to flee the city. According to Abdel Majid, Gaddafi's legs were both wounded. An NTC spokesman told Sky News that Gaddafi's body was being flown to Misrata.
UN Secretary-General Ban Ki-moon, Libya's … (4 comments)

FORMER LOAN OFFICER PLEADS GUILTY IN $3.5 MILLION MORTGAGE FRAUD SCHEME - 10/20/11 01:34 PM
Former Loan Officer Pleads Guilty in $3.5 Million Mortgage Fraud Scheme   PROVIDENCE, RI—Juan Carlos Hernandez, 42, of West Warwick, R.I., a former loan officer with National City Mortgage Company, pleaded guilty today in U.S. District Court in Providence to his role in a “straw-borrowing” scheme that netted more than $3.5 million in fraudulently obtained mortgages on 13 properties in five Rhode Island communities. All of the properties were eventually foreclosed upon by the banks holding the mortgages. United States Attorney Peter F. Neronha announced Hernandez’s guilty plea to seven counts of bank fraud, four counts of wire fraud, and two … (0 comments)

Nite Music - Foreigner - 10/20/11 03:08 AM
Respite from commerce and another one for the girls...
-David-
… (4 comments)

MINNESOTA COUPLE INDICTED FOR ORCHESTRATING $5 MILLION DOLLAR MORTGAGE FRAUD SCHEME - 10/19/11 05:03 PM
Minnesota Couple Indicted for Orchestrating $5 Million Mortgage Fraud Scam   MINNEAPOLIS—Earlier today in federal court, a Minnesota couple was indicted in connection with a $5 million mortgage fraud scheme. James Warren Hoffman, age 51, and his wife, Teresa Gay Hoffman, age 52, both of Stillwater, were indicted on one count of conspiracy to commit mortgage fraud through the use of interstate wire and nine counts of mortgage fraud through interstate wire. The indictment alleges that from August of 2001 through 2009, James Hoffman conspired to defraud mortgage lenders and obtain money from those lenders. Teresa Hoffman began participating in the … (4 comments)

LAWYER / TITLE AGENT CHARGED IN VERSAILLES MORTGAGE FRAUD SCHEME - 10/19/11 04:59 PM
Lawyer/Title Agent Charged in Versailles Mortgage Fraud Scheme Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Jeff Atwater, Chief Financial Officer, Florida Department of Financial Services; and the Palm Beach County Mortgage Fraud Task Force, announced the filing of a criminal information charging defendant Kimberly S. Daise, 48, an attorney, of Miami, Florida, in connection with a mortgage fraud scheme relating to a property in the Versailles development in Wellington, Florida. Daise made her initial appearance in federal court this morning before … (0 comments)

TITLE COMPANY OWNER AND PRESIDENT PLEADS GUILTY IN $3.1 MILLION DOLLAR MORTGAGE FRAUD SCHEME - 10/19/11 04:56 PM
Title Company Owner and President Pleads Guilty in $3.1 Million Mortgage Fraud Scheme BALTIMORE—James Kevin Hughes, age 53, of Crownsville, Maryland, pleaded guilty yesterday to wire fraud arising from a scheme to defraud lenders and a title insurance company of approximately $3.1 million. A co-defendant is scheduled for trial on November 7, 2011. The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation.
According to his plea agreement, Hughes was a part-owner, president, and oversaw the day-to-day activities of Troese/Hughes, … (0 comments)

A Little Night Music For The Girls Of ActiveRain - 10/19/11 01:51 AM
Here's a little break from the blahs of the world of commerce, a blast from the past and time for a little night music. One of my favorite songs from Art. Written by Tim Moore.
   For the girls of AR !
-David-
ps...Art has a masters degree in mathematics.
 
  … (6 comments)

WOMAN SENTENCED TO 18 MONTHS IN PRISON FOR MORTGAGE FRAUD CONSPIRACY - 10/19/11 01:43 AM
Woman Sentenced for Mortgage Fraud Conspiracy Deborah Kitay, 53, Leetsdale, Pennsylvania, was sentenced by United States District Judge Joy Flowers Conti to 18 months in prison for her participation in a mortgage fraud conspiracy. The Defendant was also sentenced to and three years of supervised release on her convictions for failing to file her income tax returns and wire fraud conspiracy. According to information presented to the court, Kitay participated in a mortgage fraud conspiracy in which she and other members of the conspiracy submitted false loan applications to lending institutions that overstated the borrowers' income and assets, among other misrepresentations. 
… (2 comments)

DEVELOPER SENTENCED TO SEVEN YEARS IN FEDERAL PRISON FOR STEALING 1031 EXCHANGE FUNDS - 10/19/11 01:39 AM
Developer Sentenced for Stealing 1031 Exchange Funds Ezri Namvar, 59, Brentwood, California, a prominent Los Angeles businessman and real estate developer, was sentenced to seven years in federal prison for stealing approximately $21 million from four clients who allowed his "qualified intermediary" company to hold their money in safekeeping before it was reinvested in real estate. Namvar was sentenced this morning by United States District Judge Percy Anderson, who also ordered Namvar to pay $20,930,648 in restitution.
In May 2011, a federal jury found Namvar guilty of four wire fraud charges.
A second defendant also found guilty of the four wire fraud charges … (4 comments)

LOAN MOD COMPANY ORDERED TO PAY $130,000 - 10/19/11 01:30 AM
Loan Mod Company Ordered to Pay $130,000 American Team Mortgage, Inc., dba American Mortgage Relief, and Steve Hufstedler, are banned from foreclosure counseling, credit/debt counseling, loan modification or mortgage origination in Oregon. Under the formal agreement, 28 homeowners will receive $67,000 in restitution. Oregon will receive an additional $65,000 for its consumer protection efforts. The restitution is aimed at reimbursing more than two dozen Oregon homeowners who were promised loan modifications that were never delivered.
The Department of Justice (DOJ) and the Department of Consumer and Business Services (DCBS) conducted a joint investigation into allegations that the companies took illegal upfront fees to provide … (4 comments)

ESCROW ACCOUNTANT ADMITS DEFRAUDING LENDERS - $1.7m LOSS to CHICAGO TITLE - 10/19/11 01:27 AM
Escrow Accountant Admits Defrauding Lenders Brenda Lukenich, 60, Hughesville, Maryland, pleaded guilty to mail fraud arising from a scheme to defraud lenders and a title insurance company of $1.7 million. Two co-defendants are scheduled for trial on November 7, 2011. According to her plea agreement, Lukenich was the escrow accountant for title companies that did business in the Baltimore, Annapolis and Washington, D.C. metropolitan areas, including Troese Title Services, Inc. (Troese Title), Camp Springs, Maryland; Troese/Hughes Title Services, Inc. (Troese/Hughes), Greenbelt, Maryland; and Troese/Prestige Title Services, Inc.  (Troese/Prestige), Ellicott City, Maryland.  As the escrow accountant, Lukenich reconciled the escrow accounts and prepared monthly … (2 comments)

TWO SENTENCED FOR MORTGAGE FRAUD SHOW LITTLE REMORSE - 10/19/11 01:19 AM
2 Sentenced for Mortgage Fraud Show Little Remorse Stacy Harrold, 43, was sentenced to 75 months in prison and ordered to pay $1,000 to a California man whose identity they stole as part of the scheme and pay a fine of $10,000. David Schoenhofen, 43, was sentenced to 54 months in prison and was to forfeit a rental home he owned in Edina to the county attorney's office. The house has a value of about $250,000. The final member of the group who was found guilty of criminal racketing in the mortgage fraud case, Eric Bernard, will be sentenced Nov. 1, 2011. Prosecutors are … (6 comments)

WOMAN ADMITS DEFRAUDING TARP FUNDED BANKS TO OBTAIN FRAUDULENT MORTGAGES - 10/19/11 01:12 AM
Woman Admits Defrauding TARP Funded Banks Marleen Shillingford, 44, New York, waived her right to indictment and pleaded guilty on October 12, 2011, before United States Magistrate Judge Donna F. Martinez in Hartford, Connecticut, to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. The charges stem from Shillingford's participation in a multimillion-dollar mortgage fraud scheme that involved more than 40 properties in Bridgeport, Conn. According to court documents and statements made in court, Shillingford was involved in the operation of Waikele Properties Corp., a real estate company with offices in Bridgeport and in Garden City, … (2 comments)

HUSBAND AND WIFE CHARGED WITH MORTGAGE FRAUD SCAM - 10/19/11 01:06 AM
Husband and Wife Charged with Mortgage Fraud Scam Portia R. Louder, 40, and Chad Louder, 41, Highland, Utah, are charged with criminal violations of federal law in connection with what the indictment alleges was a scheme to profit from loans fraudulently obtained from mortgage lenders. Portia R. Louder is charged in the indictment with three counts of false statements to financial institutions; three counts of wire fraud; and one count of money laundering. Chad Louder is charged with two counts of false statements to financial institutions.
According to the indictment, the defendants targeted expensive homes for purchase.
They looked for homes being sold … (4 comments)

MAN SENTENCED TO 102 MONTHS IN PRISON FOR BILKING LENDERS OUT OF $28 MILLION DOLLARS - 10/19/11 12:58 AM
Man Sentenced for Bilking Lenders out of $28M Troy David Chaika, 45, Burnsville, Minnesota, was sentenced for conspiring with others to bilk mortgage lenders out of more than $43 million.  Chaika was sentenced by United States District Court Judge Richard H. Kyle to 102 months in prison on seven counts of wire fraud, three counts of mail fraud, and one count of conspiracy to commit wire fraud and mail fraud. Chaika was indicted on April 12, 2010, and was convicted by a jury on May 24, 2011. The evidence presented at trial proved that between 2005 and 2008, Chaika conspired with others, including … (0 comments)

CALIFORNIA MAN CHARGED WITH MORTGAGE FRAUD - 10/19/11 12:53 AM
California Man Charged with Mortgage Fraud Hubert Rotteveel, 49, Dixon, California, has been indicted and charged with mail fraud for a mortgage fraud scheme. According to the indictment, Rotteveel acted as a real estate salesperson for 13 properties in Dixon that were purchased by two people. Rotteveel inflated the values of the properties and worked with loan officers to provide false information to lenders about the income and liabilities of the purchasers in order to induce the lenders to fund loans for the properties.
For most of the transactions, when the sales closed, the escrow officer distributed funds to a bank … (2 comments)

WOMAN ADMITS SCHEME TO OBTAIN FRAUDULENT MORTGAGES - 10/19/11 12:50 AM
Woman Admits Scheme to Obtain Fraudulent Mortgages Marleen Shillingford, 44, Nesconset, New York, waived her right to indictment and pleaded guilty before United States Magistrate Judge Donna F. Martinez in Hartford, Connecitut to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering stemming from her participation in a multimillion-dollar mortgage fraud scheme that involved more than 40 properties located in Bridgeport, Conn. According to court documents and statements made in court, Shillingford was involved in the operation of Waikele Properties Corp., a real estate company with offices at 3770 Main Street, Bridgeport, Connecticut, and 320 Endo Boulevard, Garden City, … (1 comments)

MAN PLEADS GUILTY TO DEFRAUDING 1,800 VICTIMS IN FORECLOSURE RESCUE SCAM - 10/18/11 07:03 PM
Phoenix Man Pleads Guilty to Defrauding 1,800 Victims in Foreclosure Rescue Scam   PHOENIX—Luis Belevan, 34, of Phoenix, pleaded guilty in federal court to conspiring to commit wire fraud and mail fraud. Belevan and his co-conspirator, were charged with defrauding at least 1,800 local distressed homeowners out of a $1,595 up-front fee for bogus promises of assistance in avoiding home foreclosure in 2009 and 2010.       “This defendant, owner of The Guardian Group, LLC, left over 1,800 victims in his wake,” said Acting U.S. Attorney Ann Birmingham Scheel.
“The defendant used false promises on the company website to convince consumers that … (2 comments)

VIRGINIA CONTRACTORS PLEAD GUILTY TO KICKBACK SCHEME - 10/18/11 06:57 PM
Virginia Contractors Plead Guilty to Kickback Scheme   WASHINGTON—Two Virginia contractors pleaded guilty today to participating in a scheme to steer contracts for repair and maintenance work at health care and nursing home facilities owned by Medical Facilities of America Inc. (MFA) to their now defunct plumbing business, the Department of Justice announced. Donald R. Holland, a resident of Hardy, Va., and Larry R. Sumpter, a resident of Roanoke, Va., pleaded guilty in U.S. District Court in Roanoke to conspiring with another individual to steer contracts for repair and maintenance at MFA healthcare and nursing home facilities.
According to a one-count … (1 comments)

REAL ESTATE AGENT CHARGED WITH MORTGAGE FRAUD - 10/17/11 10:20 PM
Dixon Man Charged with Mortgage Fraud   SACRAMENTO, CA—United States Attorney Benjamin B. Wagner announced that a federal grand jury returned a two-count indictment today charging Hubert Rotteveel, 49, of Dixon, with mail fraud for a mortgage fraud scheme. According to the indictment, Rotteveel acted as a real estate salesperson for 13 properties in Dixon that were purchased by two people.
Rotteveel inflated the values of the properties and worked with loan officers to provide false information to lenders about the income and liabilities of the purchasers in order to induce the lenders to fund loans for the properties.
For most … (6 comments)

MORTGAGE COMPANY PRESIDENT PLEADS GUILTY TO FEDERAL BANK FRAUD CHARGES - 10/17/11 08:47 PM
California Man Pleads Guilty to Federal Bank Fraud Charges   ALBUQUERQUE—This morning in Albuquerque federal court, Manuel Garcia, 69, who now resides in Los Angeles, California, entered a guilty plea to an indictment charging him with six counts of bank fraud.   At sentencing, which has yet to be scheduled, Garcia faces a maximum sentence of 30 years’ imprisonment, five years of supervised release, and a $1,000,000 fine. Under the terms of his plea agreement, Garcia will pay restitution in the amount of $585,243.59 to US Bank of Albuquerque, formerly known as First Community Bank (FCB). Garcia remains on conditions of … (4 comments)

The David Saks Show - 10/17/11 01:31 PM
Mid-South Real Estate Pros Can Underwrite the David Saks Show !
Your underwriting contribution is tax deductible, creates scholarships, a legacy of entertainment, supports WUMR & the University of Memphis.
Heard Saturday Night All Over the Mid-South On WUMR FM91.7 & Throughout The World Streaming Live !
Click for David's Biography at WUMR
Sponsorship for the three hour David Saks Show with standard programming (Run of Schedule) is $100 per hour.
All hour sponsorships will include opening and closing credits and four (4) underwriting announcements for the price listed.Run of Schedule (ROS) means that spots will run during the best time … (2 comments)

Real Estate Practice : Lesson 1360 - 10/17/11 01:19 PM
                                                        #1360
One thing that the Home Mortgage Disclosure Act does not do is require that lenders provide information that could provide evidence of redlining.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
One fundamental purpose of the Home Mortgage Disclosure Act is to require that lenders provide and disclose information that may provide evidence of redlining.
The intention is to observe closely any signs of prohibited lending practice.
… (0 comments)

Real Estate Practice : Lesson 1359 - 10/17/11 01:18 PM
                                                   #1359
Under the Real Estate Settlement Procedures Act (RESPA) a lender may pay a kickback to a builder for sending a buyer in.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
A lender may not pay a kickback under RESPA.
Visit HUD.gov for more information about the Real Estate Settlement Procedures Act.
… (0 comments)

Real Estate Practice : Lesson 1358 - 10/17/11 01:16 PM
                                                  #1358
Under the Real Estate Settlement Procedures Act (RESPA) a lender is allowed to pay a referral fee.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
Under RESPA lenders are prohibitied from paying referral fees.
Look at the revised RESPA pages at HUD.gov.
… (0 comments)

Real Estate Practice : Lesson 1357 - 10/17/11 01:14 PM
                                                     #1357
Under the Real Estate Settlement Procedures Act or RESPA, a lender is required to give an applicant for a loan a good faith estimate (GFE) of the closing costs associated with the loan within seven days of the application.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
Under RESPA, the lender must provide the GFE or good faith estimate of closing costs associated with the loan within three days of receiving the loan application.
… (0 comments)

Real Estate Practice : Lesson 1356 - 10/17/11 01:12 PM
                                                      #1356 
When charges are calculated, the charges in a real estate transaction that are payable by or to a party to the closing will be found in the Truth In Lending Statement (TILA).
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
The charges that are payable by or to a party in a real estate transaction will show up in USS or the Uniform Settlement Statement.
The Uniform Settlement Statement is the document which will show all of the closing costs payable by or to each … (0 comments)

Real Estate Practice : Lesson 1355 - 10/17/11 01:10 PM
                                                          #1355
Federal legislation that will prevent discrimination against an applicant because of their race is RESPA.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
The ECOA or the Equal Credit Opportunity Act is legislated to protect loan applicants regardless of their national origin, religion, color, race, whether or not their income is received from a public assistance program, their marital status or age.
… (0 comments)

Real Estate Practice : Lesson 1354 - 10/17/11 01:07 PM
                                                         #1354
One of the best ways available to compare loan costs is to use a formula that examines the lender's yield.
Is this fact true or false ?
Take your time. The solution is posted below the wildlife photo.

A. False
The best way to compare loan costs is comparing annual percentage rates.
… (0 comments)

Real Estate Practice : Lesson 1353 - 10/17/11 01:00 PM
                                                      #1353
It is never advisable for a buyer to consider raising cash for a balloon payment by refinancing his or her loan.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
Refinacing may be an option for a buyer when the balloon payment becomes due.
It might give the buyer the resources needed to avoid having to pay the full amount due when the balloon payment is due.
Check with your lender.
… (0 comments)

Real Estate Practice : Lesson 1352 - 10/17/11 12:59 PM
                                                           #1352
A seller will most likely consider using a seller second to supplement a new loan for a buyer when interest rates are high.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.

A. True
When interest rates are high the number of buyers that will qualify for a loan are fewer.
A seller might offer secondary financing as a motivating factor to help the buyer.
Check with your lender for more informetion.
… (0 comments)

Real Estate Practice : Lesson 1351 - 10/17/11 12:53 PM
                                                            #1351
A land contract may be used to finance the buyer's purchase of a home.
This is the first mortgage.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.

A. True
The land contract may not be used for a seller second mortgage, however.
Check with your lender for more details.
… (0 comments)

TITLE COMPANY EMPLOYEE PLEADS GUILTY TO FILING FALSE TAX RETURNS AFTER EMBEZZLING MORE THAN $382,000 - 10/15/11 01:39 AM
Former Towson Title Company Employee Pleads Guilty to Filing False Tax Returns After Embezzling More Than $382,000 BALTIMORE—Collette Snyder, age 42, of Timonium, Maryland, pleaded guilty today to filing false tax returns in 2007 and 2008, after she did not claim over $382,000 she embezzled from her employer, Maple Leaf Title. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; Special Agent in Charge Barbara Golden of the United States Secret Service - Baltimore Field Office; and Acting Special Agent … (10 comments)

MAN SENT TO PRISON FOR BILKING MORTGAGE LENDERS OUT OF MORE THAN $43 MILLION DOLLARS - 10/14/11 05:33 PM
Burnsville Man Sentenced for Bilking Mortgage Lenders Out of More Than $43 Million   — filed under: Press Release   MINNEAPOLIS—Earlier today in federal court in St. Paul, a 45-year-old Burnsville man was sentenced for conspiring with others to bilk mortgage lenders out of more than $43 million.
United States District Court Judge Richard H. Kyle sentenced Troy David Chaika to 102 months in prison on seven counts of wire fraud, three counts of mail fraud, and one count of conspiracy to commit wire fraud and mail fraud. Chaika was indicted on April 12, 2010, and was convicted by a … (0 comments)

FREDERICK BANK TRUST OFFICER PLEADS GUILTY TO EMBEZZLING $313,000 - 10/14/11 05:26 PM
Frederick Bank Trust Officer Pleads Guilty to Embezzling Over $313,000   BALTIMORE, MD—Tommy L. Phillips, age 55, of Frederick, Maryland, pleaded guilty today to bank fraud. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation.
Phillips worked in Frederick as a trust officer for PNC Bank.
According to Phillips’ plea agreement, when a check came to the bank for one of the trust accounts that Phillips managed, he was required to deposit the check into a clearing account. … (4 comments)

TITLE COMPANY ESCROW ACCOUNTANT PLEADS GUILTY IN $1.7 MILLION MORTGAGE FRAUD SCHEME - 10/13/11 11:01 PM
Title Company Escrow Accountant Pleads Guilty in $1.7 Million Mortgage Fraud Scheme   BALTIMORE—Brenda Lukenich, age 60, of Hughesville, Maryland pleaded guilty today to mail fraud arising from a scheme to defraud lenders and a title insurance company of $1.7 million. Two co-defendants are scheduled for trial on November 7, 2011. The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation.
According to her plea agreement, Lukenich was the escrow accountant for title companies that did business in the Baltimore, … (0 comments)

LONG ISLAND WOMAN ADMITS ROLE IN DECADE-LONG MORTGAGE FRAUD SCHEME IN BRIDGEPORT - 10/13/11 08:43 PM
Long Island Woman Admits Role in Decade-Long Mortgage Fraud Scheme in Bridgeport   David B. Fein, United States Attorney for the District of Connecticut, today announced that MARLEEN SHILLINGFORD, 44, of Nesconset, New York, waived her right to indictment and pleaded guilty yesterday, October 12, before United States Magistrate Judge Donna F. Martinez in Hartford to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. The charges stem from SHILLINGFORD’s participation in a multi-million-dollar mortgage fraud scheme that involved more than 40 properties located in Bridgeport, Conn. According to court documents and statements … (2 comments)

LOAN OFFICER PLEADS GUILTY TO PROCESSING FRAUDULENT LOAN APPLICATIONS - 10/12/11 11:44 AM
Loan Officer Admits Processing Fraudulent Loan Applications Hannah Noel Perlich, 29, Minneapolis, Minnesota, a former loan officer, pleaded guilty to one count of wire fraud in connection to a $2.8 million mortgage fraud scheme that involved five properties. Perlich, who was indicted on June 21, 2011, entered her plea before United States District Court Judge Richard H. Kyle. Perlich worked as a loan officer for two mortgage brokerage companies – St. Joseph's Financial and Legacy Lending.
In her plea agreement, Perlich admitted that from November of 2005 through September of 2006, she, aided and abetted by others, obtained mortgage loan proceeds through fraud. The purpose of … (2 comments)

CALIFORNIA REAL ESTATE INVESTOR PLEADS GUILTY TO FRAUD - 10/12/11 11:40 AM
California Real Estate Investor Admits Fraud Maher Talal Muhawieh, 31, San Francisco, California, pleaded guilty in federal court in San Francisco to wire fraud.  In pleading guilty, Muhawieh admitted that he defrauded investors between approximately January 2006 and March 2009 by promising various individuals that their funds would be used to purchase and to renovate specific residential properties in San Francisco, California that would then be sold at a profit.  Muhawieh claimed he would make regular and high rates of return for the lenders with limited risk.  In fact, and contrary to Muhawieh's promises, he used investors' funds to pay interest on loans … (0 comments)

ATTORNEYS, REAL ESTATE AGENT, LOAN OFFICERS INDICTED IN $25 MILLION MORTGAGE FRAUD SCHEME - 10/12/11 11:37 AM
Six Indicted in $25 Million Mortgage Fraud Scheme Attorneys Matthew Burstein, 40, and Aaron Rabinowitz, 40, real estate agent Elias Compres, 52, loan officers Arturo Giraldo, 51, and John Constantinides, 39, together with Rolando E. Roldan, 35, are charged with conspiracy to commit bank and wire fraud for their roles in an alleged mortgage fraud scheme in which they fraudulently obtained over $25 million in loans.; Burstein, Compres, Rabinowitz, and Roldan are also charged with wire fraud. The indictment alleges the defendants conspired to defraud financial institutions, including Countrywide Financial, Fremont Investment and Loan, IndyMac Bank, National City Corporation, Sun Trust Mortgage, … (0 comments)

INDIANA WOMAN FAILS TO SHOW UP FOR HER FRAUD SENTENCE - 10/12/11 11:30 AM
Woman Fails to Show up for her Fraud Sentence Latoya Travis, 39, Hammond, Indiana, was charged in an Indictment with failure to surrender for service of her sentence as ordered by the court.  Travis was to report to the Bureau of Prisons on February 22, 2011 to begin her sentence of 42 months after being found guilty of aggravated identity theft and making false statements on a loan application. 
These charges were filed as the result of an investigation by the United States Marshal's Service.  This case has been assigned to and will be prosecuted by Assistant United States Attorney Gary … (0 comments)

BROKER AND LOAN OFFICER ADMIT TO FORECLOSURE RESCUE SCAM - MORE THAN TWENTY VICTIMS - 10/12/11 10:54 AM
Broker and Loan Officer Admit Foreclosure Rescue Scam Mary Anne Dean, 60, Severna Park, Maryland, pleaded guilty to conspiracy to commit wire fraud in connection with a mortgage fraud scheme which resulted in over $4.7 million in fraudulent mortgage loans, of which the lenders ultimately lost at least $944,223.91, and which caused the homeowners to lose over $1.2 million in equity in their homes. Co-conpsirator Charles Donaldson, 57, Bowie, Maryland, pleaded guilty to the same charge on September 30, 2011.
  According to their plea agreements, Dean was a loan originator and operated Sunset Mortgage Company, a Maryland-licensed mortgage brokerage franchise, from her home. Donaldson, … (0 comments)

FORECLOSURE RESCUE COMPANY FORCED TO OVERHAUL IT'S PRACTICES - 10/12/11 10:46 AM
Foreclosure Rescue Company Forced to Overhaul its Practices Steven J. Baum, P.C., one of the largest volume mortgage foreclosure firms in New York State, entered into a settlement agreement that requires the firm to pay $2 million to the United States and to extensively change its practices with respect to mortgage foreclosure actions. The Agreement resolves an investigation into Baum's mortgage foreclosure-related practices, specifically whether the firm, on behalf of its lender clients, filed misleading pleadings, affidavits, and mortgage assignments in state and federal courts in New York.
The Agreement specifically prohibits Baum from engaging in certain practices related to the Mortgage … (0 comments)

JURY FINDS MORTGAGE FRAUDSTER GUILTY - 10/12/11 10:39 AM
Jury Finds Mortgage Fraudster Guilty William Doug Mitchell, 50, Fort Worth, Texas, was convicted by a jury after one hour of deliberation for his role in a complex mortgage fraud scheme that targeted homes across North Texas.  According to the Indictment, beginning in 2004, forty individuals – among them, real estate agents, property finders, mortgage brokers and loan officers, title company attorneys, escrow officers, property appraisers, and straw buyers – conspired to defraud lending institutions by convincing them to approve mortgage loans for residential properties for which the property values had been fraudulently inflated. 
The Indictment identified 114 residential properties located in … (0 comments)

MAN SENT TO PRISON FOR OPERATING MORTGAGE FRAUD SCHEME - 10/12/11 04:05 AM
Man Sentenced for Operating Mortgage Fraud Scheme Abdelghany Antar, 66, East Haven, Connecticut, was sentenced by United States District Judge Christopher F. Droney in Hartford to 37 months of imprisonment, followed by two years of supervised release, for devising and leading a mortgage fraud scheme in New Haven County, Connecticut. According to court documents and statements made in court, Antar owned and operated ATZ Realty, located at 612 Main Street, East Haven.  From June 2006 to October 2007, Antar conspired with a former employee, Andrea J. Palmucci, to purchase 11 properties in New Haven County in Palmucci's name.  As part of the … (2 comments)

LAST DEFENDANT SENT TO PRISON FOR REAL ESTATE INVESTMENT SCAM - 10/12/11 04:02 AM
Last Defendant Sentenced for Real Estate Investment Scam Deidra Bryant Peterson, 51, Brooksville, Florida, was sentenced by U.S. District Judge James D. Whittemore to 36 months in federal prison for conspiracy to commit mail and wire fraud. The court also ordered Peterson to forfeit: the real property located at 38764 Vulcan Circle, Zephyrhills, Florida, and the manufactured home maintained on the property; a 2005 Ford F150 SuperCrew-V8 SuperCrew XLT 4WD; a 2007 Ford 250 Super Duty-V8 Crew Cab XL 4WD, and a 2006 Keystone Springdale 281RKL travel trailer, which are traceable to proceeds of the offense. As part of her sentence, the … (1 comments)

LOAN MODIFICATION COMPANY SUED FOR VIOLATIONS - 10/12/11 03:57 AM
Loan Modification Company Sued for Violations NOD Consultants, LLC, California, is the subject of lawsuit accusing it of illegally collecting about $90,000 in loan modification fees from nearly three dozen Oregon homeowners and then refusing to provide refunds after the company failed to obtain promised loan modifications. The lawsuit was filed September 29, 2011 in Clackamas County Circuit Court, Oregon, against NOD Consultants and the company's two principals, Nicolas R. Godbout and Grant A. Gerhart.
In response to the U.S. foreclosure crisis, the federal government, non-profit organizations, mortgage lenders and private companies began offering loan modification services to financially distressed homeowners facing foreclosure.
The … (0 comments)

FIFTH GUILTY PLEA IN CONNECTION WITH SCHEME TO FRAUDULENTLY CONTROL CONDOMINIUM HOMEOWNER'S ASSOCIATIONS - 10/12/11 03:52 AM
Fifth Guilty Plea in Connection with Scheme to Fraudulently Control Condominium Homeowners’ Associations   WASHINGTON—A Las Vegas woman pleaded guilty today for her role in a scheme to fraudulently gain control of condominium homeowners’ associations (HOA) in the Las Vegas area so that the HOAs would direct business to a certain law firm and construction company, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, Special Agent in Charge Kevin Favreau of the FBI Las Vegas Field Office, Sheriff Doug Gillespie of the Las Vegas Metropolitan Police Department, and Special Agent in Charge Paul Camacho of the Internal Revenue … (0 comments)

FEDERAL AGENTS HONORED BY U.S. ATTORNEY FOR THEIR EFFORTS AGAINST MORTGAGE FRAUD - 10/12/11 03:45 AM
Federal Agents Honored by U.S. Attorney for their Efforts Against Mortgage Fraud   MINNEAPOLIS—To date in 2011, more than a dozen people have been charged federally with mortgage fraud and related crimes in the District of Minnesota. These complex cases are the result of lengthy investigations by federal agents, in particular, Special Agent Andy Gibart of the Internal Revenue Service’s Criminal Investigation Division (“IRS-CID”), Special Agent Jennifer Khan of the Federal Bureau of Investigation, and Inspector Christine Kroells of the United States Postal Inspection Service (“USPIS”). In appreciation for their tireless efforts to bring these cases to fruition, U.S. Attorney B. … (0 comments)

Real Estate Practice : Lesson 206 - 10/11/11 12:51 AM
                                                               
Henry and Georgette Uvulae saw a home they liked and decided to buy it.
It was listed for 275,000 dollars.
The Uvulae's borrowed 240,000.
They're going to pay the lender a total of to discount points which will cost 4,800 dollars.
Is this true or false ?
Please take your time. The solution is posted below the wildlife photo.
 
A. True
A discount point is one percent of the loan and two discount points equal 2 percent of the loan.
$240,000 totla amount borrowedX times0.02 = 2 discount points or 2%=$4,800 total cost of the discount points
… (0 comments)

Real Estate Practice : Lesson 1350 - 10/10/11 01:36 AM
                                                    #1350
A land contract is usually acceptable for a seller second which will supplement an institutional loan.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.

A. False
A land contract cannot be used for a seller second supplementing a loan.
A mortgage or a deed of trust is acceptable.
Remember to check with your lender for up to date information.
… (0 comments)

Real Estate Practice : Lesson 1349 - 10/10/11 01:31 AM
                                                         #1349
The rule of thumb, when qualifying a VA loan applicant, is that debt to income ratio should not exceed 55%.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.

A. False
The debt to income ratio should not exceed 41% for the VA loan, although the consideration of residual forms of income, such as a large cash settlement, could change the percentage.
Check with your lender to see what the current status of the process incurs.
… (0 comments)

Real Estate Practice : Lesson 1348 - 10/10/11 01:29 AM
                                                        #1348
The VA will consider and allow secondary financing only if the total amount of the loan to be financed exceeds the appraised value of the property.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.

A. False
Not exceeding the the total amount of the appraised value of the property is a condition for the VA's consideration of secondary financing.
… (0 comments)

Real Estate Practice : Lesson 1347 - 10/10/11 01:28 AM
                                                         #1347
A veteran is applying for a 400,000 dollar loan, which is the purchase price of the home, and has full VA entitlement. The home was appraised at 425,000 dollars.
The required downpayment for the loan is 1.5% of the total loan amount, or $6000 dollars if no downpayment is applied to the cost.
Is this fact true or false ?
Please remember to take your time. The solution is posted  below the wildlife photo.

A. False
One of the key characterisitics of a VA loan is that no downpayment is required as long as the loan does not … (0 comments)

Real Estate Practice : Lesson 1346 - 10/10/11 01:25 AM
                                                     #1346
Prepayment penalties are always a condition of underwriting a VA loan.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.

A. False
Prepayment penalties are not allowed with a VA loan.
This is considered one of the key characterisitics of a VA loan.
… (0 comments)

Real Estate Practice : Lesson 1345 - 10/10/11 01:23 AM
                                                         #1345
A veterans entitlement may only be restored after his or her VA loan is assumed and the one who assumes the loan is not a veteran.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
One of the conditions for restoration of entitlement is that the new borrower must be a veteran and agree to substitute his or her entitlement for the original borrower's entitlement.
If the parties meet the specifications for qualification, and loan payments are up to date, and the new borrower is approved, the … (0 comments)

Real Estate Practice : Lesson 1344 - 10/10/11 01:22 AM
                                                     #1344
A veteran may receive a VA guaranteed loan only on a single family residence.
One to four unit unit residences are ineligible.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
A one to four unit residence is eligible for a VA loan as long as the veteran occupies one of the units.
… (0 comments)

Real Estate Practice : Lesson 1343 - 10/10/11 01:19 AM
                                                                    #1343
The the VA will guarantee a loan only if the lender does not require a downpayment.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
Lender's will make a loan without requiring a downpayment because the government has made a guaranty to reduce the risk to the lender if the buyer ultimately defaults on the loan.
… (0 comments)

Real Estate Practice : Lesson 1342 - 10/10/11 01:17 AM
                                                       #1342
Discount points always have to be paid by the borrower on an FHA loan.
Is this fact true or false ?
Remember to take your time. The solution is posted below the wildlife photo.

A. False
Discount points may be paid by either the borrower or the seller.
Other parties are allowed to pay the discount points on the FHA loan for the borrower.
… (0 comments)

Real Estate Practice : Lesson 1341 - 10/10/11 01:15 AM
                                                       #1341
When the FHA considers the application of the local loan ceiling for the making an FHA loan, the decision is based on both the costs of mortgage insurance and the debt-to-income ratio of the borrower.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.

A. False
The FHA's decision to establish a loan ceiling for the purchase of a property is based upon the median housing costs of the region in which the loan is being applied for.
… (0 comments)

CLOSING ATTORNEY WHO MISHANDLED MORTGAGE FUNDS SENTENCED TO 21 MONTHS IN PRISON - 10/07/11 06:39 PM
Attorney Who Mishandled Mortgage Funds Sentenced to 21 Months in Federal Prison   David B. Fein, United States Attorney for the District of Connecticut, announced that BRIAN P. McMANUS, 43, of Fairfield, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 21 months of imprisonment, followed by three years of supervised release, for misappropriating more than $1 million in funds during real estate transactions he handled. According to court documents and statements made in court, McMANUS, who operated a law practice in New Haven, engaged in a series of fraudulent transactions in his capacity … (2 comments)

CONNECTICUT MAN SENTENCED TO 37 MONTHS IN PRISON FOR OPERATING MORTGAGE FRAUD SCHEME IN NEW HAVEN COUNTY - 10/07/11 06:33 PM
East Haven Man Sentenced to 37 Months in Prison for Operating Mortgage Fraud Scheme in New Haven County   David B. Fein, United States Attorney for the District of Connecticut, announced that ABDELGHANY ANTAR, 66, of East Haven, was sentenced today by United States District Judge Christopher F. Droney in Hartford to 37 months of imprisonment, followed by two years of supervised release, for devising and leading a mortgage fraud scheme in New Haven County. According to court documents and statements made in court, ANTAR owned and operated ATZ Realty, located at 612 Main Street in East Haven. From June 2006 … (2 comments)

MORTGAGE BROKER AND LOAN OFFICER PLEAD GUILTY IN FRAUDULENT MORTGAGE RESCUE SCHEME - HOMEOWNERS IN DISTRESS LOSE OVER $1.2 MILLION - CONSPIRATORS OBTAINED OVER $4.7 MILLION IN FRAUDULENT LOANS - 10/07/11 06:25 PM
Mortgage Broker and Loan Officer Plead Guilty in Fraudulent Mortgage Rescue Scheme Resulting in Losses of Over $1.2 Million to Homeowners in Financial Distress Conspirators Also Obtained Over $4.7 Million in Fraudulent Mortgage Loans   BALTIMORE—Mary Anne Dean, age 60, of Severna Park, Maryland, pleaded guilty today to conspiracy to commit wire fraud in connection with a mortgage fraud scheme which resulted in over $4.7 million in fraudulent mortgage loans, of which the lenders ultimately lost at least $944,223.91, and which caused the homeowners to lose over $1.2 million in equity in their homes. Co-conpsirator Charles Donaldson, age 57, of Bowie, … (0 comments)

"Location, Location, Location" Has Become "Denied, Denied, Denied" - 10/07/11 05:44 PM
 
Haven't the statistics regarding bankruptcy, divorce, foreclosure, illness and the alarming fact that the parents and neighbors of the kids in your Girl Scout Troop aren't buying cookies, or entertainment books, sent you a red flag ?
Did you spend your last fifty bucks at the black jack table futilely trying to win enough money to make the mortgage payment ?
Get used to it !
America's economy is worse than an Ethiopian famine.
You'd rather get bitten by a rattlesnake than buy a house.
What good is location, location, location when you're denied, denied, denied ?
Who can you turn to for financing when your FICO … (4 comments)

FORMER NFL PLAYER PLEADS GUILTY TO $2.2 MILLION REAL ESTATE FRAUD & TAX EVASION - 10/07/11 05:20 PM
Former Mississippi Resident Pleads Guilty to $2.2 Million Fraud Scheme and Tax Evasion   JACKSON, MS—Jeffrey Lynn Walker, 47, of Franklin, TN, pled guilty in U.S. District Court today to wire fraud and tax evasion, U.S. Attorney John Dowdy, FBI Special Agent in Charge Daniel McMullen, and Special Agent in Charge James C. Lee, of IRS Criminal Investigation New Orleans Field Office announced. Walker, a former NFL football player who previously resided in Madison County, Mississippi, was indicted on October 20, 2010 by a federal grand jury for his involvement in a scheme to defraud and obtain approximately $2.2 million from … (0 comments)

Warning ! - 10/07/11 11:50 AM
Charity scams are everywhere.
I've heard that it's not illegal for a company to offer to collect unwanted items or money, but that they must not imply they're doing it for charity if they're actually making a profit for themselves by doing so. 
Click "BOGUS" for more.

… (0 comments)

FORMER LOAN OFFICER PLEADS GUILTY IN $2.8 MILLION MORTGAGE FRAUD SCHEME - 10/06/11 09:05 PM
Former Loan Officer Pleads Guilty in $2.8 Million Mortgage Fraud Scheme   MINNEAPOLIS—Earlier today in federal court, a former loan officer from Minneapolis pleaded guilty in connection to a $2.8 million mortgage fraud scheme that involved five properties. Hannah Noel Perlich, age 29, pleaded guilty to one count of wire fraud. Perlich, who was indicted on June 21, 2011, entered her plea before United States District Court Judge Richard H. Kyle. Perlich worked as a loan officer for two mortgage brokerage companies–St. Joseph’s Financial and Legacy Lending. In her plea agreement, Perlich admitted that from November of 2005 through September of … (2 comments)

SAN FRANCISCO REAL ESTATE DEVELOPER PLEADS GUILTY TO INVESTMENT FRAUD SCHEME - 10/06/11 09:01 PM
San Francisco Real Estate Developer Pleads Guilty to Investment Fraud Scheme
 
SAN FRANCISCO—Maher Talal Muhawieh pleaded guilty in federal court in San Francisco yesterday to wire fraud, United States Attorney Melinda Haag announced. In pleading guilty, Muhawieh admitted that he defrauded investors between approximately January 2006 and March 2009 by promising various individuals that their funds would be used to purchase and to renovate specific residential properties in San Francisco that would then be sold at a profit.
Muhawieh claimed he would make regular and high rates of return for the lenders with limited risk. In fact, and contrary … (2 comments)

ASSISTANT COMMISSIONER OF NYC DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT INDICTED FOR RACKETEERING, BRIBERY, AND EXTORTION - SIX OTHERS INCLUDING MANHATTAN ATTORNEYS AND NYC-WIDE REAL ESTATE DEVELOPERS ALSO CHARGED - 10/06/11 04:59 PM
Assistant Commissioner of NYC Department of Housing Preservation and Development Indicted for Racketeering, Bribery, and Extortion Six Others, Including Manhattan Attorneys and NYC-Wide Real Estate Developers, Also Charged   Federal and New York City law enforcement agents and officers today arrested an Assistant Commissioner for the New York City Department of Housing Preservation and Development (HPD) and six others on charges of racketeering conspiracy, bribery, extortion, wire fraud, and money laundering in connection with corruption schemes that netted the defendants between one and two million dollars in kickbacks and bribes over a decade and cost HPD hundreds of thousands of dollars … (0 comments)

Joplin, Missouri still needs your help . - 10/06/11 03:44 PM

… (2 comments)

FLORIDA MORTGAGE FRAUDSTER SENTENCED TO 9 YEARS IN THE SLAMMER - 10/05/11 09:42 PM
Florida Mortgage Fraudster Sentenced to 9 Years Manetirony Clervrain, also known as "Kevin Rusell," Broward County, Florida, was sentenced by U.S. District Judge James I. Cohn to 108 months in prison, to be followed by three years of supervised release. On July 22, 2011, Clervrain pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of conspiracy to commit wire and bank fraud, in violation of Title 18, United States Code, Section 1349, in connection with two separate fraudulent schemes.
The first fraudulent scheme involved a scheme … (0 comments)

MAN INDICTED FOR OBTAINING LOAN USING ANOTHER'S NAME - 10/05/11 09:12 PM
Man Indicted for Obtaining Loan Using Another's Name Henry J. Papale, 60, Southington, Connecticut, has been charged with two counts of wire fraud stemming from an alleged mortgage fraud scheme involving the use of another's name and credit information. The indictment was returned September 29, 2011.
The indictment alleges that, in early 2007, Papale used the name and credit information of an acquaintance to purchase properties in Florida.  Papale claimed that he did not earn enough income and did not have a credit score sufficiently high to enable him to qualify for loans for the properties he wished to purchase.  In February 2007, … (0 comments)

JURY CONVICTS THREE OF MORTGAGE FRAUD CONSPIRACY - Defendants Remanded Into the Custody of the United States Bureau of Prisons - 10/05/11 07:32 PM
Jury Convicts 3 of Mortgage Fraud Conspiracy Neil Fagan, Pamela Johnson, and Veldora Arthur were found guilty of conspiracy to commit wire and mail fraud, and all substantive mail-fraud counts set forth in the February 3, 2011 superseding indictment.  The indictment included charges of conspiracy to commit wire and mail fraud and substantive mail fraud.  The conspiracy and mail fraud counts carry a statutory maximum sentence of 20 years' imprisonment.  All defendants were remanded into the custody of the United States Bureau of Prisons following their convictions. Fagan and Johnson were charged in Counts 1 through 5 of the indictment and … (2 comments)

MAN SENTENCED TO NEARLY SIX YEARS IN PRISON FOR FORECLOSURE RESCUE AND REAL ESTATE PONZI SCHEME - 10/05/11 03:51 PM
Man Sentenced for Foreclosure Rescue and Real Estate Ponzi Scheme Royce Lee Newcomb, 49, Roseville, California, was sentenced by United States District Judge Morrison C. England Jr., to five years and 10 months in prison, to be followed by three years of supervised release for a real estate fraud scheme. The amount of restitution will be determined at a future hearing. Newcomb pleaded guilty to the charges on May 12, 2011. According to court documents, from January 1, 2009 until February 19, 2010, Newcomb solicited 22 investors to purchase real estate, primarily foreclosed homes. He instructed them to send their money to … (0 comments)

MAN ADMITS USING FRAUDULENT COLLATERAL TO OBTAIN LOAN - HE PLEDGED GRAIN RECEIPTS HE DIDN'T OWN - 10/05/11 03:07 PM
Man Admits Using Fraudulent Collateral to Obtain Loan Michael Dean Olk, 56, Clear Lake, Iowa, a man who made false statements to obtain loans from a bank, pled guilty in federal court in Cedar Rapids, Iowa. Olk was convicted of using fraudulent grain receipts as collateral for two bank loans.
At the plea hearing, Olk admitted he pledged grain he did not own in order to obtain two bank loans.  Olk used fraudulent warehouse receipts from his grain elevator company to deceive the bank.  The warehouse receipts falsely represented Olk delivered grain to his elevator on January 14, 2003 and February 10, 2003.  In … (0 comments)

TWO ADMIT BID RIGGING AT FORECLOSURE AUCTIONS - 10/05/11 03:03 PM
2 Admit Bid Rigging at Foreclosure Auctions Eric Larsen, San Leandro, California, and Timothy Powers, Alamo, California, two real estate investors, were charged in U.S. District Court for the Northern District of California in Oakland, California for their participation in bid-rigging and mail-fraud conspiracies at public real estate foreclosure auctions in Contra Costa and Alameda counties, California. The defendants have agreed to plead guilty to the charges. Powers is charged with participating in the conspiracy in Contra Costa County from as early as May 2009 until about December 2010, and Larsen is charged with participating in the conspiracy in Alameda County from … (2 comments)

FORMER CENTENNIAL BANK SENIOR VICE PRESIDENT CHARGED WITH MORTGAGE FRAUD - 10/05/11 02:58 PM
Former Bank SVP Charged with Mortgage Fraud Joseph W. Traxler, 63, Bloomington, Minnesota, the former senior vice president and chief financial officer for Centennial Mortgage and Funding, Inc. (“Centennial”), was charged with defrauding a bank of approximately $8 million through material omissions and misrepresentations concerning Centennial’s operations and mortgage loans entered by Centennial. Traxler was charged via an Information with one count of aiding and abetting bank fraud.
Allegedly, from 2007 through 2008, Traxler, an accountant, fraudulently used funds intended for mortgage loans to cover Centennial’s operating losses and to fund the company’s payroll and other expenses. Specifically, when a home … (2 comments)

REAL ESTATE INVESTMENT SCAMMER GETS 9 YEARS IN THE SLAMMER - 10/05/11 02:52 PM
Real Estate Investment Scam Nets 9 Years in Prison <!-- Date created --> Jesse Alvin Cripps Sr., 57, previously of Visalia, California, was sentenced by United States District Judge Lawrence J. O'Neill to nine years and six months in prison for an investment scheme involving the sale of fraudulent real estate investment trusts. As part of his sentence, Cripps must also pay $2 million in restitution to his victims and must forfeit the property and proceeds obtained from the scheme, including a $2 million personal money judgment.
Cripps was remanded into custody immediately after the sentencing hearing to begin serving his … (0 comments)

HARD MONEY BROKER CONVICTED OF STEALING - 10/05/11 02:47 PM
Hard Money Broker Convicted of Stealing Mark Alan Helsing, 53, Tustin, California, a broker for hard money lenders, was convicted of stealing $6.9 million from investors in a Ponzi and real estate fraud scheme.  Helsing pleaded guilty to 55 felony counts of grand theft, seven felony counts of filing false recorded documents, six felony counts of elder financial exploitation, and sentencing enhancements for white collar crime over $500,000 and excessive taking over $1 million and $1.3 million. Helsing faces a maximum sentence of 15 years in state prison at his sentencing Dec. 2, 2011, in Department C-30, Central Justice Center, Santa Ana, California. … (2 comments)

SIX INDICTED IN $25 MILLION MORTGAGE FRAUD SCHEME - DEFENDANTS INCLUDE TWO ATTORNEYS, LOAN OFFICER AND REAL ESTATE AGENT - 10/05/11 02:30 PM
Six Indicted in $25 Million Mortgage Fraud Scheme Defendants Include Two Attorneys, Loan Officer, and Real Estate Agent   A federal grand jury in Brooklyn returned a superseding indictment charging six defendants with a mortgage fraud scheme in which they fraudulently obtained over $25 million in loans.1   The indictment alleges the defendants conspired to defraud financial institutions, including Countrywide Financial, Fremont Investment and Loan, IndyMac Bank, National City Corporation, Sun Trust Mortgage, Inc. and Wells Fargo & Company, and wholesale mortgage lenders, including Lend-Mor Mortgage Bankers Corporation, Mortgage Lenders Network USA, and New Century Mortgage Corporation.   Attorneys Matthew Burstein … (0 comments)

FORMER LEE'S SUMMIT REAL ESTATE AGENT SENTENCED FOR MORTGAGE FRAUD CONSPIRACY, MONEY LAUNDERING $12.6 MILLION SCHEME INVOLVED NEW, UPSCALE HOMES IN LEE'S SUMMIT, RAYMORE - 10/05/11 02:26 AM
Former Lee’s Summit Real Estate Agent Sentenced for Mortgage Fraud Conspiracy, Money Laundering $12.6 Million Scheme Involved New, Upscale Homes in Lee’s Summit, Raymore   KANSAS CITY, MO—Beth Phillips, United States Attorney for the Western District of Missouri, announced that a former Lee’s Summit, Mo., real estate agent was sentenced in federal court today for her role in a $12.6 million mortgage fraud conspiracy that involved 25 upscale residential properties in Lee’s Summit, Mo., and Raymore, Mo. Angela R. Clark, 42, of Lee’s Summit, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 20 months in federal prison without … (4 comments)

SENTENCING IN MORTGAGE FRAUD CASE DEFENDANT FINED FOR CAUSING FALSE DOCUMENTS TO BE SUB,ITTED TO THE LENDER - 10/05/11 01:38 AM
Sentencing in Mortgage Fraud Case Defendant Fined for Causing False Documents to be Submitted to Lender   ALBANY—United States Attorney Richard S. Hartunian and Clifford C. Holly, Special Agent in Charge, Federal Bureau of Investigation, Albany Division, announced that Michael J. Pallozzi was sentenced today by Senior United States District Judge Thomas J. McAvoy to three years’ probation, with conditions including a fine of $5,000 and 100 hours community service, based upon the defendant’s plea to one count of wire fraud in connection with the submission of false documents to help secure the refinancing of a residential property located in Latham, … (0 comments)

Why I Never Use Facebook, MySpace or Twitter ....Never Have ....Never Will...Ever ! - 10/05/11 01:33 AM

Facebook is a dangerously out-of-control social networking environment full of voyeurs, cretins and lurkers looking for indecent relations. It includes many less-than-savvy commerce-concerned users trying to get rankings in Bing, Google or other search engines through the application of fast meta tag recognition, which by any other name is a short cut and lazy dogs way out of some well-defined hard work and effort. I'd absolutely, positively recommend that anyone with common sense avoid some social networks like the plague. A Facebook icon on any page is recognition that there's the potential for another schmoe to lurk in the house. I want the "F" icon, Floogle, Schmoogle, Google, or any other blog or social networking icon that I don't subscribe to off … (81 comments)

PROMOTER OF CHRISTIAN ROCK CONCERTS PLEADS GUILTY TO FEDERAL WIRE CHARGES IN $1 MILLION PONZI SCHEME TOLD INVESTORS THAT FUNDS WOULD BE USED TO PURCHASE REFURBISH AND RESELL HOMES - 10/05/11 12:53 AM
Promoter of Christian Rock Concerts Pleads Guilty to Federal Wire Fraud Charge in $1 Million Ponzi Scheme SANTA ANA, CA—The owner and operator of a Downey firm has pleaded guilty to wire fraud in a scheme that collected nearly $1 million from victims who were falsely promised that their money would be used to host Christian rock concerts. Lauren Baumann, 43, of Downey, the owner of Stewardship Estates, LLC, pleaded guilty late yesterday before United States District Judge Josephine S. Tucker.
Baumann admitted in court today that she solicited loans from investors with claims that the money would be used to … (0 comments)

The Real Estate Profession, ActiveRain and Dr. Albert Schweitzer - 10/03/11 09:29 PM
I posted this almost four years ago.
I wanted to share it with you once more now that it's lost in the queue.
                                           
 
Dr. Schweitzer defined ethics as follows:
"Ethics is a name we give to our concern for good behavior. We feel an obligation to consider not only our own personal well-being but also that of others and of human society as a whole."
There are always benefits to be derived from ethical behavior.
When a customer or client believes that you have worked in a professional and honest manner in their behalf, and have … (0 comments)

Real Estate Practice : Lesson 1340 - 10/03/11 01:25 PM
                                                       #1340
For hypothetical purposes, a home is located in a low closing cost area of a state and it's selling for $400,000.
It was appraised at $410,000.
The FHA max ceiling for the loan is $390,000.
The maximum amount that the buyer would be able to receive is the FHA max of $390,000.
Is this fact true or false ?
Please take your time. The solution is poted below the wildlife photo.
 
A. False
The FHA will have a maximum loan amount available based under the FHA's LTV (loan to value) rules.
In a state that is low-closing recognized and … (0 comments)

Real Estate Practice : Lesson 1339 - 10/03/11 01:21 PM
                                                            #1339
A buyer wants to finance the purchase of a duplex with an FHA loan.
The buyer may do this only if the intention is to rent out both of the units.
Is this fact true or false ?
Please take your time. Te solution is posted below the wildlife photo.

A. False
Federal Housing Administration (FHA) loans are normally made to finance the purchase of an owner-occupied primary residence.
… (0 comments)

Real Estate Practice : Lesson 1338 - 10/03/11 01:19 PM
                                                       #1338
The Federal Housing Administration not only insures the loans it sells, but it buys them also.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
The Federal Housing Administration neither buys nor sells loans.
The Federal Housing Administration does insure loans, however.
… (0 comments)

Real Estate Practice : Lesson 1337 - 10/03/11 01:17 PM
                                                          #1337
Secondary financing of a property may always be used to cover the minimum cash investment of the borrower as long as the sum of the two loans exceed the properties value.
Is this fact true or false ? (puhleeez, you better not miss this one)
Remember to take your time. The solution is posted below the wildlife photo.

A. Absolutely false
Secondary finacing may be used only if the two loans do not exceed the value of the property.
… (0 comments)

Real Estate Practice : Lesson 1336 - 10/03/11 01:14 PM
                                                      #1336
If secondary financing is used in alignment with a conventional loan it may never be partially or fully amortized with a balloon payment.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A.False
Secondary financing may certainly be fully or partially amortized, and with a balloon payment.
Secondary financing may even be interest only.
… (0 comments)

Real Estate Practice : Lesson 1335 - 10/03/11 01:11 PM
                                                        #1335
A man is applying for aconventional loan with an LTV of 90%.
He has a monthly income of 3000 dollars a month.
His total monthly recurring debt obligations equal 500 dollars.
What is the maximum monthly mortgage payment that this buyer will qualify for ?

 
A. $580
Here's how it works.
3000 total monthly income*0.36 or 36% of monthly income for mortgage=1080 total for mortgage -500 in additional recurring debt subtracted from the maximum allowable for the mortgage=580 dollars total available for mortgage payment
36% is the  standard for lending if there are other monthly debt obligations
… (0 comments)

Real Estate Practice : Lesson 1334 - 10/03/11 01:09 PM
                                                        #1334
When we talk about a 2-1 buydown plan we're talking about buying down the interest rate at 1% for two years.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
A 2-1 buydown plan is one that is considered a temporary buydown and the interest rate is reduced by 2% the first year and 1% the second year.
All Content Copyright Protected © 2010        
… (0 comments)

Real Estate Practice : Lesson 1333 - 10/03/11 01:07 PM
                                                        #1333
When considering a bi-weekly loan, one of the disadvantages is that it will take more time to build equity.
Is this fact true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.

A. False
Equity will build much faster with a bi-weekly loan because the borrower is essentially making more yearly payments.
All Content Copyright Protected © 2010        
… (0 comments)

Real Estate Practice : Lesson 1332 - 10/03/11 01:00 PM
                                                        #1332
Private mortgage insurance is usually required if the loan-to-value ratio exceeds 80%.
Is this true or false ?
Please remember to take your time. The solution is posted below the wildlife photo.

A. True
PMI (provate mortgage insurance) is most always required for loans which exceed 80% of the LTV (loan-to-value) ratio.
All Content Copyright Protected © 2010        
… (0 comments)

Real Estate Practice : Lesson 1331 - 10/03/11 07:20 AM
                                                            #1331
A buydown is not an option when the lender is considering a way to help a buyer qualify for a loan.
Is this fact true or false ?
Please take your time. The solution is posted below the wildlife photo.

A. False
The buydown will allow a third party or the seller to pay a sum to the lender which will lower the buyer's interest rate on the loan.
By creating a reduction in the borrower's intitial payment it will make it easier for the borrower to qualify for the loan.
All Content Copyright Protected © 2010      … (0 comments)

 
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David Saks

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Memphis, TN

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The Real Estate Mart of Tennessee, Inc.

Address: 4040 North Watkins, Suite #4, Memphis, TN, 38127

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The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

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