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Feds Nab 400 Nationwide In Mortgage-Scam Sting
June 20th, 2008The arrests took place over the past three months in about a dozen cities. Over the past couple of months, federal agents have nailed hundreds of real estate wheeler-dealers, charging them with fraud in a crisis that has crippled the mortgage industry and left thousands of homeowners, particularly African Americans, cr
ibless. Even as the FBI was announcing the arrests of some 400 alleged financial criminals – including housing developers, mortgage lenders and brokers, lawyers, real estate agents and appraisers – Washington Mutual, the nation’s largest savings and loan association, was firing 1,200 people across the country. Many of WaMu’s layoffs will be in its home loan business, Forbes.com reports, as the Seattle-based bank dissolves its riskier loans, such as sub-prime mortgages. The arrests, 60 of which occurred on Wednesday alone in a dozen or so cities, including Chicago, Houston and Miami , were part of a crackdown against fraud that has cost homeowners about $1 billion. “Mortgage fraud poses a significant threat to our economy, to the stability of our nation’s housing markets and to the peace of mind of millions of American homeowners,” Deputy Attorney General Mark Filip said at a news conference. The sting, known as “Operation Malicious Mortgage” has netted 406 people since it kicked off on March 1, he said. While there is a rainbow of Americans crushed under the weight of predatory lenders and their unscrupulous cohorts, nobody has felt the pressure more than African Americans. Studies have shown that Blacks are more likely to be targeted for high-risk loans than less credit-worthy Whites. These sub-prime mortgages, with interest payments that often balloon after reeling in borrowers with relatively low introductory rates, have triggered a cascade of foreclosures, particularly in Black and Latino communities.
wow
I’m not suprised. Myself and 900 others where involved in the same thing in Texas. we joned together and filed a lawsuit with an attorney. It wasn’t class action. Some if the agencies involved has settled. But we haven’t gotten any money from it yet. I guess it’s still in the attorney’s trust. But that’s been over 5 years ago. So what do we do now. do you think the FBI or NEWS would be interested in that? Everyone lost their homes. It’s a said story. read about it on:http://emerson-lonestar-lawsuit.com/
Now that we know the truth. What can be done to keep the homes of those still struggling in predatory loans?
Thank GOD someone is paying for putting all these people in desprite situations. People work hard for their money and want to come home to their “HOME”. Now we have hard working families that lived the american dream one day and on the streets the next. While all these housing developers, mortgage lenders and brokers, lawyers, real estate agents and appraisers are buying their new Benz, others are now eating at soup kitchens. 400 arrest is absoulutly amazing but I hope there are more to come. Word of Wisdom: please, please always do your research before making any big purchase like a house.
Purchasing a home is equivalent to achieving the American dream to some and often there is a lot of emotion attached to it (especially if you are the first in the family to do so). However, we must educate ourselves about the entire homeownership process BEFORE we sign any contracts or your dream home can become your nightmare! We must know and understand our “true” financial worth and how to manage our finances to our advantage. At every step in the process; ask questions, questions, questions. Realize that you are in control and they want your business (for the next 30 years).
Don’t just work for your money…make it work for you. Invest and diversify your portfolio. Have more than one stream of income and cultivate it. Make sure that you are financially secure and financially educated BEFORE you purchase a house. Live on a budget so that you are in control of your money. Protect your credit (very early on and teach your kids the same)! Don’t allow a lender to talk you into a contract that is beyond your means. For example; just because you qualify for $500,000 does not mean you should accept a $500,000 loan. Live below your means; allow yourself some wiggle room. We have to make more educated decisions when it comes to our finances…
Food for thought.
Aint God Good I think its Judgement time Everything done in the dark the Lord is bringing all of it to the Light you cant just do wrong and keep getting away with it. And the ones who are Suffering always seems to be the African Americans. NOW THE WRONG DOERS WILL REAP WHAT THEY SOW
This is just the beginning,there are still real estate companies trying to take away homes from african americans and latinos. It is ashame our ancestors help build this country and we still cannot own our homes without being taken advantage of.When does it stop.
Thats a shame cause they have caused a lot of people to loose their homes and to go into foreclosure. they need to be given 10 years jail time and also have their homes taken from them to see how it feel to loose everything that you have worked for.
They need to look into Commerce Bank Mortgage loan dept. in Farmingdale NY and I won’t name the young man in particular that I know, and only because I don’t know if it will later subject me to legal ramifications. However, I am glad to see that something is being done,although, as always just a little to late for alot of us.
It’s definitely sad and I feel for anyone stuck in such a situation, but I gotta agree with a few previous posters comments… “DO YOUR RESEARCH” and “EDUCATE YOURSELF” These hustlers know most people in certain credit situations or at a certain status can’t really get an offer or loan from anywhere else so they target them, sell them a dream and leave them living a nightmare. I think everyone has an idea of what they can and can’t afford & qualify for, but I guess the opportunity seems so great that they are blinded by the thought of having a nice, new home.
Ladies and Gentlemen
I’m happy more than know. I was one of people got caught up. That’s justice.
I just sent a long example and it’s not even on here
Well, to the comment about educating yourselves. I think the Homeownership organizations are a fraud as well.Yes they give you the information and they make you think that after you give them 8hrs of your time you can qualify for the best mortages rate. But in fact the mortages lenders they deal with are the same ones were hearing about today.
Remember, they our paid through goverment grants to educate us on the housing market not help secure the best mortage rate for the first-time homeowner. Forget the american dream just live and enjoy the journey!
Maybe I should re-phrase the question. How does a person get out of a predatory loan? Your credit scores are to low to quaalify for a refinance. What is done once you have identified the problem. Some aof us are still struggling with ARM’s.
apologies for my typo’s and punctuation.
God Bless America. Such injustices against people of color….I just pray to God because it is usually blacks and latinos being taken advantage of by other blacks and latinos in this industry….we forget that is the white american government that controlls these banks that lend the money in the end…this was all a set up to make the five richest richer and not it is time for all the people of color to pay the price….just like drug game in this country…sad because everyone deserves a decent home at a price they can afford.
Scams seem to be on the rise, I just saw a small scam in California where 24 were bilked out of about $2,800 each but then in Maryland a couple was busted for reaping $35 Million, these scam artists were focusing on those trying to avoid foreclosure. Mortgage Blog.
I saw this coming a long time ago. Some street guys learned the game and abused it! Glad they snatching them up! Its ruined the economy!
I don’t know if this has to do with what has been going on in the past months about people forclosing on there homes. I’m glad the feds did some thing about this but I know that there’s more victims out there suffering this BUT YA’LL CHECK OUT THIS YOUTUBE VIDEO!!!!!!!
http://www.youtube.com/watch?v=cwtyLHcrfu0
HIT ME UP