By KIMBERLEY HAAS Officials at the U.S. Department of Justice say that a Bay area rapper was sentenced to more than seven years in prison for his role in orchestrating a complex loan fraud and identity theft conspiracy. Mark “Kafani” Hicks, aka Amir Rashad, 42, of Oakley, Calif., allegedly admitted to being at the center of a conspiracy in which he directed a team of criminals who stole approximately $2 million from banks and lending institutions. According to a press release, during a two-year period, Hicks impersonated victims in over a dozen phone calls with banks, lending institutions, and gold dealers. Over $480,000 of the illicit gains were recovered from a safe deposit box controlled by Hicks’s relatives, authorities said.…
Mortgage fraud risk dropped 7.5% YOY in Q2 2022, with one in 131 mortgage applications containing instances of fraud, CoreLogic reported. In contrast, Q2 2021 saw fraud in 1 in 120 applications. Mortgage fraud is defined as the deliberate act of lying or omitting information that is used by an underwriter or lender to fund, purchase, or insure a mortgage loan. CoreLogic’s Mortgage Fraud Risk Index showed fraud risk in mid-2022 coming down from a point of high risk in 2021. The company said it is also partly due to a recalibration of its sourcing model in Q1 2022. After the update, the index showed higher risk during certain months in Q2. For example, while overall fraud risk fell, income…
The nephew of a New York real estate mogul has pleaded guilty to a misdemeanor charge in a mortgage fraud case involving $167 million. Kevin Morgan, former vice president of Morgan Management and Morgan Communities, pleaded guilty to bank larceny on Tuesday. Morgan admitted to submitting false documents to ESL Federal Credit Union for a construction loan. The charge carries a fine of $100,000 and one year in prison, though Morgan will serve no jail time due to his plea deal. It is expected he will be sentenced on Oct. 20. Morgan had previously pleaded guilty to felony conspiracy to commit bank fraud. The new plea is a lesser charge and supersedes his original admission. It is the result of…
Ten of the 15 metros with the highest fraud risk saw an increase in risk compared to last quarter, CoreLogic reported in its Quarterly Mortgage Fraud Brief. The report analyzes the metros with the highest mortgage fraud risk in order to get a clear picture of trends found in residential mortgage loan applications processed by LoanSafe Fraud Manager. CoreLogic’s National Mortgage Application Fraud Risk Index was flat in Q1 2022, falling slightly from 138 in Q4 2021 to 137 this quarter. Year-over-year, the trend is up 15% at 119. The Poughkeepsie metro area topped the list for highest fraud risk, with risk up 16% quarter-over-quarter. It’s followed by the Miami, San Jose, Las Vegas, New York, Los Angeles, San Francisco, Stockton,…
Good Morning! Today is Thursday, March 10. Democrats cut $15.6 billion in Covid-19 aid from the omnibus spending package. It includes $13.6 billion in aid for Ukraine. The Kremlin accused the U.S. of waging an “economic war” as Russia’s currency has lost about 40% of its value in a month. The Mortgage Note Reports Mortgage Fraud: A California man pled guilty to wire fraud related to a foreclosure rescue scheme that took in at least $5 million from thousands of distressed homeowners. Foreclosures In Full-Swing: February foreclosure rates were up 11% from January and 129% YOY as pre-pandemic activity returns And in other mortgage and housing news… Under The Microscope: President Biden ordered a study to assess the risks and…
A California man has pleaded guilty to wire fraud in connection with a foreclosure rescue scam that took at least $5 million from distressed homeowners. Sergio Lorenzo Rodriguez admitted to one count of wire fraud, according to the Department of Justice. This offense carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. Rodriguez and an unnamed person owned and/or managed a series of mortgage modification companies, through which they used deceptive marketing practices to defraud homeowners facing foreclosure. They executed this scheme between mid-2015 and August 2020. Through tactics such as falsely claiming homeowners had been pre-approved by their lender for a modification and…
Good Morning! Today is Tuesday, January 25. President Biden was caught cursing about a Fox News reporter on a hot mic. Stocks continued a selloff at the opening bell this morning as investors worry over Fed policies and global politics. The Supreme Court will hear cases challenging affirmative action, focused on Harvard and the University of North Carolina. In mortgage and housing news… The Mortgage Note Reports Victims of Mortgage Ponzi Scheme Can Seek Compensation: People who were victimized by what investigators have called the biggest Ponzi scheme in New Hampshire history can apply for compensation. Big Cities Making A Comeback: More expensive, populated housing markets appeared on the quarterly Wall Street Journal/Realtor.com® Emerging Housing Markets Index, which could signal…
Good Morning! Today is Monday, January 10. A fire in a Bronx apartment building killed at least nineteen people. Russian forces have surrounded Ukraine on three sides as diplomats meet in Geneva for talks. “Power of the Dog” and “Succession” won top honors at the Golden Globes, which did not air this year due to criticism over ethical lapses and a lack of diversity. And in mortgage and housing news… Are UWM Workers Being Unreasonable?: United Wholesale Mortgage turned heads in the industry last week when it was reported that health officials are investigating the company after receiving complaints about how they are handling COVID, which lead some people to ask why employees in lending are expected to be in…
Mortgage lending is a hot target for fraudsters in the U.S., and the situation has grown worse since the pandemic began, according to a new report from LexisNexis. The LexisNexis True Cost of Fraud Study: Financial Services and Lending examines fraud trends in North American financial services and lending sectors. The 2021 edition is based on responses from August and September 2021. The report revealed that U.S. banks and mortgage lenders saw an increase in fraud costs and attack volumes compared to before the pandemic. Every $1 of fraud loss now costs financial service firms $4, compared to $3.25 in 2019 and $3.64 in 2020. For mortgage lenders, fraud costs $4.40 for every $1, 23.5% higher than before the pandemic…
Mortgage fraud rose 37.2% year-over-year (YOY) through Q2, reaching pre-pandemic levels, according to CoreLogic’s latest Mortgage Fraud Report. The increases are artificially high given the significant drop in fraud during 2020, which was driven by jumps in traditionally low-risk refinances. The current level mimics mid-2019. “Refinance opportunities that surged lending volumes during the pandemic may be winding down. The outlook is for fewer low-risk refinances compared to purchases and cash-out refinances, which translates to a higher-risk environment for fraud,” said Ann Regan, executive, product management at CoreLogic. According to the Mortgage Bankers Association, increasing interest rates have hampered refinance activity, with applications spiraling to their lowest point since January 2020. Purchase applications have picked up slightly. About 0.83% of all…
