Mortgage Fraud and Lemonade

By
Real Estate Agent with The Berkshire Group Realtors

A story in the Denver Post yesterday related how a ex-mortgage company owner is heading toward a new career...in loan fraud prevention.

Michael Richardson's company went down the tubes when 5 of his employees got caught falsifying loan-apps, Social Security numbers, driver's licenses, pay stubs, yaddy yaddy.  He fired them immediately, but not soon enough to save his company.

Loan fraud is rampant in Colorado.  What is amazing out of 337 claims to FHA, of those 1/4th came from 4 mortgage companies. 

The mortgage business needs to be cleaned up.  Perhaps Mr. Richardson is the one to do it.

From losing his life's work to becoming an activist against what took it away.  That's what I call turning Lemons into Lemonade.

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Rainer
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Jason King
Coastal Mortgage - Mandeville, LA

The problem is that there are almost no barriers to entry. The licensing exams are a joke and any idiot can find SOME mortgage company to hire them. I hope the ranks start thinning soon; in fact, I am welcoming a tougher market.

I agree - this industry needs a major overhaul.

Aug 25, 2006 05:45 PM #1
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Kristal Kraft
The Berkshire Group Realtors - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

Jason, There is always a silver lining to a cloud.  With a tough market, there certainly in a thinning of the herd.  The sad thing to me is the consumers that have been duped.  They look to us for guidance, we need to be able to tell them they can't afford a house...and give them a strategy to follow to be able to do so in the future.

kk

Aug 26, 2006 01:01 AM #2
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