Predatory borrowing in Houston

Houston Chronicle:

Indictments accusing 37 people of fraudulently obtaining mortgage loans worth $5.6 million were unsealed today, revealing the results of a years-long investigation by the Harris County District Attorney's Office and the U.S. Secret Service.

Those indicted included buyers, sellers, loan officers, mortgage brokers, real estate appraisers, escrow officers and construction company owners, prosecutors said.

Assistant District Attorney Lester Blizzard said the scheme was organized by Obbie Toliver, Sr. and Joyce Toliver, using three businesses — Magic Processing, Magic Financial Services of Houston and Your Processing Center.

Blizzard said the Tolivers used the businesses to submit false loan documents, artificially inflate appraisal values and launder money.

...

The scheme allegedly involved the use of straw borrowers. You have to wonder how many other foreclosures around the country are caused by this kind of scheme. The assistant DA said it was similar to other schemes that had been prosecuted in the Houston area.

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