Posts Tagged ‘loan officers’

Defendant Sentenced in Fraudulent HUD Code/Mod Mortgage Scheme

August 7th, 2014 Comments off

handcuffs  ladyars co  ukFollowing a story MHProNews posted June 4, 2014, U.S. District Judge Richard Voorhees imposed a 50 month prison sentence on Marina A. McCuen for her role in a mortgage-fraud conspiracy that originated $158 million in fraudulent federally-secured loans on manufactured and modular homes in North and South Carolina. She worked with two other W. R. Starkey loan officers in helping secure FHA (Federal Housing Administration) loans from Phoenix Housing Group based on knowingly inflated income and assets listed for borrowers, and then destroyed loan documents after a Federal investigation into the scheme began. When customers defaulted on loans, the FHA paid insurance claims. Mortgage insurance claims totaled over $24 million, costing the U. S. government more than $15 million. McCuen received $156,000 in commissions, according to, and will have to pay restitution, the amount yet to be determined, upon completion of her sentence. The other six defendants have pleaded guilty and await sentencing. ##

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Carolina Lender Closed due to Fraudulent Activities

August 13th, 2013 Comments off

Top managers of Greensboro, North Carolina-based Phoenix Housing Group (PHG), a manufactured and modular housing retailer in North and South Carolina, have been charged with selling more than 1,100 homes in North Carolina financed with fraudulently-secured government backed loans, resulting in millions of dollars in losses to federal loan programs. Company personnel regularly manipulated credit reports so their customers would qualify, and then persuaded buyers to sign mortgages that were much higher than originally promised. Even in cases where the buyer defaulted, the loan company got paid because the loans were federally insured. Employees were encouraged to make sales even if customers could not afford the homes. As charlotteobserver informs MHProNews, even after the federal probe began employees continued to make fraudulent sales. Loan officers destroyed documents and told witnesses to lie as a means of impeding the investigation. PHG was forced to discontinue operations.

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Castle and Cooke Deny Wrongdoing

July 25th, 2013 Comments off

Updating a story MHProNews posted earlier today about allegations by the Consumer Financial Protection Bureau (CFPB) that Castle & Cooke Mortgage of Salt Lake City made illegal incentive payments to loan officers, the president of C & C denied the charges and is seeking to resolve the issue. “We don’t compensate loan officers based on the terms of a loan and we are not motivated to upsell,” Matthew Pineda said to American Banker. “The company has been cooperating with the CFPB in its investigation for more than a year, and anticipates an amicable resolution in this complex regulatory matter,” according to a statement the lender issued. As nationalmortgagenews informs MHProNews, the CFPB filed suit in U.S. District Court in Salt Lake July 23.

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CFPB Sues Lender for Violating Compensation Rule

July 25th, 2013 Comments off

A mortgage lender is being sued by the Consumer Financial Protection Bureau (CFPB) for allegedly paying bonuses to loan originators that charged consumers higher interest rates in violation of the loan officer compensation rule. The 85th largest lender in the country, Castle and Cooke Mortgage LLC of Salt Lake City is said to have paid 150 loan officers quarterly bonuses ranging from $6,100 to $8,700 for leading borrowers into higher-priced loans. The Bureau


says loan officers who did not charge higher rates did not receive bonuses, and that 1,100 of the loans were illegal. According to what MHProNews has learned from nationalmortgagenews, C&C originated $332 million in loans in the first quarter. The lawsuit seeks restitution and civil penalties, and specifically cites company president Matthew Pineda and senior vice president Buck Hawkins. “We are taking action against the type of practices that precipitated the financial crisis,” said CFPB director Richard Cordray.

(Photo credit: top, ABCNews; bottom, HousingWire)

Romney Baits Obama with QM

October 5th, 2012 Comments off

In his take on the presidential debate Wed. night, Paul Muolo of OriginationNews notes Romney peppering Obama about the Qualified Mortgage rule that awaits finalization by the Consumer Financial Protective Bureau. MHProNews has learned Muolo finds it impressive that Romney knows what a QM is, and suggests Obama likely does not, although he compliments Obama for having learned the difference between loan brokers and loan officers. Since Obama criticized loan officers for writing mortgages for unqualified applicants, Muolo asks, somewhat rhetorically, if this means he has recognized that loan officers at discredited lending institutions are responsible for their role in the mortgage mess.

(Image credit: HousingWire)

Loan Origination Comp. May be Revealed Tomorrow

August 17th, 2012 Comments off

nationalmortgagenews reports Peter Carroll, assistant mortgage manager at the Consumer Financial Protection Bureau (CFPB) says the proposed loan officer compensation rule will be significantly different from the original set of guidelines issued in early May when the CFPB first raised the concept of flat fee payments for certain transactions, a practice that met resistance from the mortgage industry. The CFPB said it may prevent loan officers from charging origination fees if they were being paid by the buyer of the loan or the table funder. As MHProNews has learned, a briefing has been scheduled for Friday by the CFPB to discuss loan origination issues.

(Image credit: Consumer Financial Protection Bureau)

Loan Officer Comp. Still in the Wings

August 15th, 2012 1 comment

OriginationNews‘ Paul Muolo says the Consumer Financial Protection Bureau’s (CFPB) proposed unveiling of its final loan officer compensation rule set for early August has yet to be issued. While the mortgage industry anxiously awaits, some loan officers are suggesting the result might be better the longer the agency waits, hopefully in an attempt to get it right. As MHProNews has learned, if flat fee pricing is the answer, lenders might avoid markets where home prices are more modest. As he so aptly notes, “2% of $100,000 is a lot less than 2% of $500,000. Who knows, maybe the agency is trying to fix this.”

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Number of Loan Officers Increasing

December 3rd, 2011 Comments off

NationalMortgageNews states, according to the Bureau of Labor Statistics, mortgage brokerage firms added 1,500 workers to their rosters in October. Employment in the mortgage/broker sector reached 236,500. The National Mortgage Licensing System reports the number of state-licensed loan officers rose 6,470 in Q3 to 113,350, suggesting former loan officers are returning to the field, or new workers are entering the profession.

(Photo credit: Select Financial Mortgage)