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Posts Tagged ‘restitution’

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)

Manufactured Housing Dealer may Lose License

July 26th, 2012 Comments off

mcall reports from the Lehigh Valley in Pennsylvania Love Homes and its owner, Lawrence Higgins, in Lower Macungie Township are in danger of losing licenses necessary to conduct its retail business of selling manufactured housing. A Pennsylvania Department of Banking order issued in March, 2012 has accused Love Homes of engaging in “dishonest, fraudulent or illegal practices in its business, and in unfair or unethical practices or conduct in connection with the mortgage loan business, on at least eight occasions, by taking down payments from consumers and failing to fulfill its contractual obligations.” One customer has received only $9,000 of $16,500 owed by Love Homes dating back to Dec. 2010, and in another instance of receiving a $25,000 down payment from a customer who had credit issues, Higgins did not return the deposit or assist with financing as offered. MHProNews has learned Higgins is not licensed as a loan originator despite attempts to secure financing, nor did he post a surety bond when trying to make a loan. Saying he will take care of restitution, Higgins says, “Everybody who’s in the housing business has got the same issue. We’re all struggling, just barely hanging on.” The state’s order is subject to appeal.

(Image credit: Wikipedia Commons)

Couple Agree to Restitution Agreement

May 11th, 2012 Comments off

According to LegalNewsLine, a Ventnor, New Jersey couple charged with a fraudulent modular investment opportunity agreed to pay $35,000 in restitution and civil penalties by Aug. 31 as a settlement. As announced by NJ Attorney General Jeffrey Chiesa, if the defendants, Dennis and Maria Bracall, miss the deadline they and their company will have to pay $60,000. MHProNews.com has learned the Bracall’s allegedly represented to two investors their company, Pro-Tech Custom Modular Homes, Inc., would build ten luxury modular homes on land they owned. The investors allegedly paid $125,000 each and were told they would earn $17,500 on their investment. None of the money was returned to the investors, according to the settlement, and the Bracall’s allegedly owned only two of the lots.

(Photo credit: LegalNewsLine—NJ Attorney Gen. Jeffrey Chisea)

 

Doing Time for Doing the Crime

March 8th, 2012 Comments off

To follow-up on a story we published Nov. 07, 2011, The T&D tells MHProNews.com a man from Neeses, South Carolina, was sentenced to eight years in prison after pleading guilty to six counts of breach of trust for taking money for manufactured homes never delivered. If rom Colter was arrested last Nov. after allegations began emerging in the summer of his fraudulent behavior. 18 known people gave him money for MH and received nothing in return. During the hearing Colter offered to make restitution in exchange for probation, but Circuit Court Judge Ed Dickson noted the four months the Orangeburg County man has been in jail he has not offered to repay anyone. First Circuit assistant solicitor Ted Lupton said restitution would run into the hundreds of thousands of dollars, and it is unrealistic to think he would repay the money within the five years state law requires. “You can’t get blood out of a turnip but you can lock up the turnip,” Lupton said. One woman who lost money said Colter gave her a phony name.

(Photo credit: TheTandD)

Jackson Jailed for MH/Mod Fraud

February 1st, 2012 Comments off

KTVUTV in Springfield, Missouri tells MHProNews.com a woman who collected money for the sale of modular and manufactured homes she never delivered has been sentenced to eight years in prison. Convicted in October on seven counts of fraud, Edna Kay Jackson, owner of Dogwood Homes, allegedly swindled eleven Dogwood customers. She also brokered home sales and did not give the seller or the bank their share of the proceeds. Her lawyer was pleased because she could have received 28 years behind bars. Her sentence was not long enough according to the daughter of an elderly man who lost his life savings to Jackson. She and her son have been ordered to repay $1.28 million restitution to victims of the fraud.

(Photo credit:  KZRZ Radio)