Arrested Broker's Cooperation Brings Down SoCal Fraud Ring

While the summary of the relief act (now extended) is accurate, most readers will not grasp the distinction that it has limited application to cash out refinances, which have been the bulk of loans in trouble. The protection does not apply to the extent of the cash out. However, there are other exceptions in the Internal Revenue Code that are more widely helpful, and state law can provide protection in many cases. Borrowers facing Cancellation of Debt Income (CODI) need to see a tax attoney, as CPAs cannot advise on (and are often unaware of)provisions of state law that may protect the borrowers.

So now everyone in the industry will suffer from the actions of these thugs who thought they could get away with it?

CA Needs to stop allowing Realtors to shlep loans too. It's non arms-length.