Take your time to read that Online Annual Recertification Attestation and check your loan officer licenses and NMLS status before signing. After signing it becomes a little bit late to avoid an investigation, especially when all the matters are public record. Compliments of KL&G
Like the borrower, read before you sign. Especially when checking out your net worth.
CALIFORNIA COUPLE ARRESTED FOR FORECLOSURE FRAUD INVOLVING THEIR OWN HOME
Blas and Nancy Arreola of Turlock, Calif., face felony charges of trying to stall foreclosure of their property by filing phony documents with the county recorder, similar to cases filed in December 2012 against four other homeowners. The charges include multiple counts of identity theft, recording false or forged documents, and fraud conspiracy. Court documents suggest that authorities may go after supposed masterminds accused of running a fraud scheme from Southern California.
They were allegedly taught by Jacob and Aide Orona of Highland in San Bernardino County, according to an arrest warrant affidavit for the Arreolas filed by investigator Glenn Gulley of the district attorney's office. (modb12113)
It seems so justifiable, until you get indicted.
MARYLAND TITLE COMPANY OWNER GETS TWO YEARS IN FEDERAL PRISON
Harriet M. Taylor was sentenced to two years in prison followed by five years of supervised release for wire fraud in connection with a scheme to use over $1.5 million in mortgage closing funds for her personal use and to operate her title companies. Judge Quarles also ordered Taylor to pay restitution of $1,256,635.70 to Old Republic and $253,750.84 to CAN Surety, the insurer on Taylor’s errors and omissions policies.
Taylor co-owned and managed two title insurance companies, Regal Title Co. LLC and Loyalty Title Co. LLC. Pursuant to an agreement with a national title insurance underwriter, and as required by Maryland state law, escrow accounts for Regal and Loyalty were established, separate from company operating accounts, for the purpose of holding and disbursing funds received from lenders for real estate closings.
Beginning in 2009, however, Taylor caused some mortgage lenders to wire their funds entrusted for real estate settlements to Regal’s operating account, rather than to the escrow accounts. Taylor also caused funds in Regal’s and Loyalty’s escrow accounts to be transferred back and forth to the companies’ respective operating accounts. By using commingled funds throughout 2009, Taylor kept her two businesses afloat while enriching herself with both company and escrow funds. From January through December 2009, Taylor paid herself $477,877.50 from three company operating accounts.
As shortfalls in the escrow accounts increased, Taylor failed to remit insurance premiums to the title insurance underwriter, Old Republic National Title Insurance Co.; pay recording fees for deeds; and pay off prior liens, including four of which belonged to the government sponsored entities, Fannie Mae and Freddie Mac.
Old Republic learned of the commingling of escrow and operating funds during a 2009 audit of Regal. They directed Taylor to stop the practice. Five months later during a further audit of both companies, Old Republic discovered that in nine cases Taylor used the payoff checks that were supposed to pay prior lien holders and immediately terminated her as an agent. Old Republic was obligated to satisfy the prior liens against the properties affected by the misuse of settlement funds and to complete other transactions Regal and Loyalty failed to perform. Accordingly, in January 2010, Old Republic incurred a total loss of $1,518,532, which resulted from paying off prior liens, paying recording fees, and for insurance premiums collected by Regal and Loyalty but not forwarded to Old Republic. (usattymd11713)
Remember when I said be careful of the title company you choose? Looks like people chose these two and one other from a prior report that should have been passed over.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE.