St Paul women charged in $5 Mil Mortgage Fraud

St Paul, MN: A 29-year-old St. Paul woman has been charged with participating in a scheme to defraud mortgage lenders out of more than $5 million. Lindsey Rae Loyear was charged with one count of conspiracy to commit mortgage fraud.

Loyear allegedly conspired with two others from 2006 through October of 2008, to defraud mortgage lenders in connection with financing real estate transactions in the Twin Cities, including the purchase of Cloud 9 Sky Flats in Minnetonka, MN. The fraud reportedly involved the submission of false information to lenders in order to obtain mortgage loans.

Loyear was a real estate agent and mortgage broker. Loyear allegedly concealed information from potential lenders, including that she had arranged short-term loans to buyers to use as down payment and that she paid cash kickbacks to buyers for purchasing the properties. Altogether, more than 130 units were sold through the scheme, and more than $8 million was transferred to accounts, which were then used to pay kickbacks and share loan proceeds among co-conspirators.

If convicted, Loyear faces a potential maximum penalty of five years in prison. This case is the result of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service.

Many of these fraud convictions appearing today were for crimes done during the height of the mortgage boom (2004 – 2007).  Tighter mortgage lending rules and regulations in place today make most, if not all of these scams nearly impossible to pull off today.


Is it a gift for down payment, or mortgage fraud?

…. From NASDAQ

A genuine gift, meaning no repayment is expected or implied, can help you qualify for a mortgage. But a “gift” that is really a loan in disguise could be problematic or even considered loan fraud, a federal crime with serious consequences.

Click to Read the full story

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New Consumer Financial Protect Board goes live today

New Consumer Financial Protect Board goes live today. The CFPB is part of last years Dodd / Frank financial reform disaster bill. In theory, the new agency sounds great. The reality is something completely different.

For starters… they are already going after the wrong people…

Here is another great video from the boys over at TBWS.

Thoughts? Log in and post!


Is refinancing easier than buying a home?

A refinance is just as easy to get as your first mortgage… right?

Many people think that refinancing is easier than buying a home for two main reasons:

1) you already have a loan on the home, you make your payments, so it should be easy to refinance.
2) your current mortgage lender already has all their information, so they with easily refinance you, and they are the best place to call **

Sorry… Not true on either count.

There are many factors that might make it hard to refinance:

First, understand that no matter who you call for the refinance – even your existing lender, you have to go through the full underwriting process again. With that said;

– Your financial situation could have changed. Do you have the same job, same income? Better or worse? How about credit. Better or worse?
– Mortgage loan Underwriting guidelines have changed. The crazy days of every getting a loan are long gone. Be are back to old school traditional financing guidelines. Did you buy the home on a program that no longer exists… like a no documentation loan?
– With all the foreclosures, your properties value probably went down. How does that play into your refinancing options?

Most people refinance for three main reasons.

1) Smaller payment
2) Shorter term
3) Cash out / consolidate debt

The good news is that mortgage rates in MN and WI are amazingly low right now, and lenders are still providing home loans everyday. If you are thinking of refinancing, but have been scared away by thinking you can’t for some of the reasons listed above, you are making a big mistake.

Contact a local MN or WI mortgage company with a licensed Loan Officer. Fill out a full application, and let them review your situation.

You may be very happy with the answer!

** WORD OF CAUTION: Many people make the mistake of just calling their existing lender. Almost exclusively, EVERY OTHER lender will have a better deal for you. Be sure to call more than just your current company.


Real Estate News for 7/18/2011

The problem is that these banks have made bad real estate loans and other gambles. In Ireland, the collateral backing these loans is only about 20 percent of the face value of the mortgages. Somebody has to lose when loans go bad. ….. It looks like there will be little federal revenue to share with Minnesota or Wisconsin or the city of Chicago.They're going to have to sell their roads and streets, sell their infrastructure and their public utilities, sell off whatever …
http://centurean2.wordpress.com/ — Mon, 18 Jul 2011 10:42:38 -0700

Businesses are constantly faced with tough decisions, but few decisions carry the financial weight and long-term implications that are involved in a company's real estate. Should we lease or purchase a property? … The owner of a property is entitled to the tax savings resulting from cost-recovery rules and mortgage interest during the holding period and when the property is sold. Lease payments are fully tax-deductible and reflect rent paid for both the land and …
http://finance-commerce.com/ — Mon, 18 Jul 2011 10:01:43 -0700

RealtyNoteBid.com is the Pre-foreclosure Exchange which auctions off non-performing Notes using a convenient platform for buying real estate Notes online.
http://www.realtynotebid.com/blog/ — Mon, 18 Jul 2011 08:35:37 -0700

On appeal in this dispute about the priority of a mechanic's lien and a mortgage, appellant mechanic's lienor argued that its lien is prior to the mortgage because the record shows that the work that was the actual beginning of the …
http://minnlawyer.com/ — Mon, 18 Jul 2011 08:13:50 -0700


FHA extends foreclosure rules for the unemployed

FHA has announced they will allow unemployed homeowners up to one years time before they start foreclosure. Up to one year forebearance is now allowed. Learn more – watch the video!


Real Estate news for 7/7/11

Mortgage applications drop 5.2% on higher interest rates. Mortgage rates had a slight increase last week, we are seeing the affect on the mortgage market. The purchase index actually increased! Meanwhile, the refinance index fell for …
http://nocrealestateblog.blogspot.com/ — Wed, 06 Jul 2011 11:44:00 -0700
Michael Groves Law Office has been able to stop foreclosure actions (without bankruptcy filings) and modify mortgages including lowering interest rates, balance reductions, and house payment reductions. Authority Real Estate has an …
http://www.hemet-homes.net/ — Wed, 06 Jul 2011 11:39:13 -0700
A variety of investment house America opportunities are available across the state while mortgage interest rates continue to remain low. It is also observed that foreign investors are making enquiries and visiting popular real estate …
http://www.shortsaleignition.com/ — Wed, 06 Jul 2011 11:11:27 -0700
July 6, 2011 (Chris Moore) The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 1, 2011. The…
http://loanrateupdate.com/ — Wed, 06 Jul 2011 11:05:23 -0700
James asks…Whats the best way to modify my mortgage interest rate?I bought my home about 2 years ago at 7.125%. I had (and still have) excellent credit, but the reason my rate was high is because I went with a stated, no doc loan.
http://shortsalehelpbrevard.com/ — Wed, 06 Jul 2011 11:05:03 -0700
Fixed rate mortgage rates give you the benefit of a consistent and predictable monthly outgoing, lending themselves to slightly higher interest rates to compensate for the currently lower tracker rates. Trackers on the other hand give …
http://mortgagenews.org.uk/ — Wed, 06 Jul 2011 10:42:35 -0700