CFPB NOW HAS TEETH AND THEY BITE-EARLY WARNING TO BE GIVEN TO THOSE UNDER INVESTIGATION
The Consumer Financial Protection Bureau plans to provide early warning of possible enforcement actions. Subjects under investigation to be given opportunity to respond to CFPB concerns, On Nov. 7, CFPB outlined plans to provide advance notice of potential enforcement actions to individuals and firms under investigation. The Early Warning Notice process allows the subject of an investigation to respond to any potential legal violations that CFPB enforcement staff believes have been committed before the Bureau ultimately decides whether to begin legal action.
The Early Warning Notice process begins with the Office of Enforcement explaining to individuals or firms that evidence gathered in a CFPB investigation indicates they have violated consumer financial protection laws. Recipients of an Early Warning Notice are then invited to submit a response in writing, within 14 days, including any relevant legal or policy arguments and facts.
In July, the CFPB's Office of Enforcement made public its rules regarding the initiation and execution of enforcement investigations. The Early Warning Notice is not required by law. The decision to give notice in particular cases is discretionary and will depend on factors such as whether prompt action is needed. The Bureau has the authority to enforce consumer financial laws and to supervise the nation's largest banks, thrifts, credit unions, and certain other entities offering consumer financial products and services that collectively interact with the majority of consumers in the United States.
More information about the Early Warning Notice can be found at: www.consumerfinance.gov/wp-content/uploads/2011/11/EarlyWarningNotice.pdf (cfpb2011-4 (11-7-11)
I have been following this very closely as I am sure most of you have. If you get the notice the rule has a strict format to follow and page limitation as well. You are cautioned to consult your attorney on this the minute you receive an “Early Warning Notice.”
THREE CALIFORNIA MEN PLEAD GUILTY TO MORTGAGE FRAUD
On Nov. 7, three Elk Grove men pleaded guilty in a mortgage fraud scheme that resulted in more than $1 million in losses. GLENN WATKINS, KEVIN WATKINS and FREDERICK DAVIS pleaded guilty to federal mail fraud charges.
According the U.S. attorney's office, all three changed their names to "Muslim-sounding" names to hide their poor credit histories and qualify for home loans.
GLENN WATKINS LEGALLY CHANGED HIS NAMED TO RASHEED KHALEB to fraudulently purchase two homes, while DAVIS CHANGED HIS NAME TO AMMAR RASHAD to fraudulently purchase a home and KEVIN WATKINS CHANGED HIS NAME TO JAMAL ALI, federal prosecutors said.
Once the homes went into foreclosure, GLENN WATKINS CHANGED HIS NAME TO JASON JOHNSON, WHILE DAVIS BECAME COREY GREEN AND KEVIN WATKINS BECAME CALVIN CARTER.
All three are scheduled to be sentenced before U.S. District Judge Morrison England on Jan. 26. Mail fraud is punishable by up to 20 years in prison and a $250,000 fine. (sacbee111111)
With the entire elaborate name changing, the next change will be a number for each of them in federal prison is my best educated guess.
DELAWARE SUES MERS MORTGAGE REGISTRY FOR ALLEGEDLY DECEIVING BORROWERS
The MERS database tracks ownership interests in mortgages which obscures information from borrowers as to who owns the mortgage and impedes the borrowers' ability to fight foreclosures according to Delaware Attorney General Beau Biden in the complaint filed against MERSCORP INC., on Oct. 27.
According to Biden MERS engaged and continues to engage in a range of deceptive trade practices that sow confusion among consumers, investors and others in the mortgage finance system. This allegedly damages the integrity of Delaware's land records and leads to unlawful foreclosure practices according to Biden.
Consumers cannot see who actually owns the loan and according to Biden the MERS records are frequently inaccurate. This unreliability harms the consumer because it permits and encourages foreclosures for which the authority has not been fully determined and may not be legitimate according to Biden.
MERS denies the allegations. We will see what the outcome is at a much later date. It is alleged by the MERS spokesperson that MERS business practices are transparent. QUESTION: If the business practices are so transparent why is it the consumer cannot find out who has the ACTUAL ECONOMIC INTEREST at the time the consumer requests the information?
Biden has asked the court to stop MERS from foreclosing in the company's name and from acting as a nominal mortgage lender when it did not have a beneficial interest in the property. Biden also is asking the court to stop MERS from recording mortgages in the name of MERS when it does not own the beneficial interest.
The case is State of Delaware vs. MERSCORP Inc. CA6987, Delaware Chancery Court (Wilmington.) bloomsbergnews122711.
MERS is also being investigated by the New York State Attorney General and is in multiple unrelated lawsuits by counties that allege the company cheated them out of recording fees.
FOUR IN MISSISSIPPI SENTENCED TO FEDERAL PRISON FORMORTGAGE FRAUD-TWO MORE AWAIT SENTENCING
On Nov. 4, four individuals including one attorney were sentenced to Federal Prison: Bobby F. FISHER, JOHN W. EMORY, III, JONI LYNN GOSS, AND MATT HOWARD were sentenced by U.S. District Judge Henry T. Wingate in federal court for crimes involving mortgage fraud.
FISHER WAS A REAL ESTATE ATTORNEY who previously pled guilty to one count each of conspiracy and money laundering as a result of his role in closing fraudulent mortgage loans. He was SENTENCED TO SERVE 27 MONTHS IN PRISON followed by three years of supervised release. He was also ordered to pay restitution in the amount of $768,501.24.