FACTS
Roughly 71% of loan officers pass the national test the first time they take the exam, according to figures released by the Nationwide Mortgage Licensing System. The state (first-time) pass rate is even better: 78%, according to NMLS. The results are for tests administered between July 30 of last year and April 30, 2010. (nmn6810)
MORAL
You study, you pass. You do not study, you do not pass. So if you really want to stay in the industry, study!
FORECLOSURE TREND TO CONTINUE WITH A DOWN MARKET
FACTS
Foreclosures in the United States will not stabilize until late 2011. Only three out of eight bank-owned homes are on the market, and two-thirds of those under-valued homes yet to hit so the housing market still faces years of low prices. The bad news is it will prolong the time it takes for market recovery. (nmn6810)
MORAL
Anyone remember me telling you in my prior e-Alerts since 2008 that I said the foreclosures would continue until 2012? I still say 2012. You still have the five year "step-ups" that funded up to September 2007 to hit the market when they reset in September 2012. In the meantime the lenders, FDIC and the trustee of the New Century Bankruptcy are suing everyone that sold them loans including but not limited to the wholesale lenders, the brokers and even the homeowners. How do I know? Because we are defending a few of them now and more are coming in weekly.
CALIFORNIA AG ARRESTS THREE MORE IN BAIT AND SWITCH HOME REFINANCE SCHEME
FACTS
On June 9, 2010, Attorney General Edmund G. Brown Jr. announced the arrests of president and co-owner of ALG Capital Inc, Sean McConville and two associates who used "deceptive promises and forged documents" to steal almost $1 million from homeowners falsely guaranteed attractive home loan refinancing packages.
Brown's office initiated its investigation in October 2008 in response to more than 70 complaints against the defendants and their mortgage brokerage business. The brokerage operated out of Calabasas from early 2006 until late 2007 and then moved to Mission Hills until it shut its doors in 2008.
Brown's investigation found that from April 2007 to October 2008, the owners and their associates lured dozens of borrowers into refinancing home loans by falsely promising low interest rates, minimal broker fees and other attractive terms. The brokerage then negotiated different terms with lenders.
When homeowners were presented with closing documents, they bore the terms promised, but which the lenders never approved. After homeowners signed the closing documents, key pages were removed and replaced with pages bearing the terms that the lender had actually agreed to. The homeowners' signatures were then forged on the replacement pages, and ALG forwarded the forged documents to the escrow company.
Homeowners only discovered they had been defrauded when they received the final loan documents with the true terms and their signatures forged on closing cost disclosures, Truth-in-Lending disclosures, loan applications and other documents.
Additionally, ALG collected almost $1 million in undisclosed fees, charging homeowners up to! $57,000 in broker fees. In total, dozens of homeowners were locked into almost $30 million in loans with terms they did not agree to.
As a result of this scheme, many homeowners were forced to sell their homes, come out of retirement, or tap retirement savings. Others paid significant prepayment penalties, including over $21,000 in one case. Borrowers also rarely received the large cash-outs they were promised as part of the refinance.
Sean McConville is from Austin, Texas, and is being held at the Travis County Jail in Texas pending extradition. He was previously convicted of robbery in November 1997.
Matthew Bourgo of Thousand Oaks, who posed as a licensed notary for the brokerage, was also arrested on June 8, 2010 at his residence. He is being held in Ventura County Jail and will be transferred to Los Angeles County.
Joseph Nguyen of Woodland Hills, a former loan officer for the brokerage, was also arrested at his business, where he worked as a chiropractor. He is being held by authorities in Los Angeles County. The suspects are each being held on $29.5 million bail.
In September 2009, Brown's office arrested three others involved in the bait-and-switch scam, including Michael McConville of Simi Valley, Sean's brother and co-owner of the brokerage, Alan Ruiz of Huntington Beach, a former loan officer and Garrett Holdridge of Palmdale, who was convicted of seven felonies in March for his involvement in the scam.
The complaint, filed in Los Angeles County Superior Court, includes the following charges: 38 counts of grant theft, 19 counts of forgery, three counts of elder abuse and one count of conspiracy to commit grand theft.
Brown also filed suit against the McConville brothers in May 2009 for running a property tax reassessment scam which targeted Californians looking to lower their property taxes. The brothers billed tens of thousands of homeowners throughout California nearly $200 each for property tax reassessment services that were almost never performed and are available free of charge from local tax assessors. (caagbrown6910)
MORAL
Note the bait and switch from the original loan quoted to a higher loan and then the forged signatures. Sound familiar? If it does, I suggest you see an attorney now if you had any relationship with these people. Note the bail amount!
OWNER OF SAN DIEGO LOAN MODIFICATION COMPANY PLEADS GUILTY
FACTS
