Houston Loan Officer Found Guilty of Fraud

Kristen Anne Way, a former loan officer from Houston, was found guilty on a variety of charges stemming from her involvement in a mortgage fraud scam. Way was found guilty of conspiracy to commit wire and mail fraud, wire fraud, conspiracy to commit money laundering, engaging in a monetary transaction in criminally derived property and money laundering. According to Tim Johnson, U.S. attorney for the Southern District of Texas, Way was a loan officer at Consumer Direct Mortgage in 2005 and 2006 when she participated in the submission of fraudulent loan applications and packages to residential mortgage lenders across the country. Way and her co-conspirators allegedly misrepresented the credit worthiness of individual borrowers who were recruited to purchase multiple properties to the mortgage lenders. Additional misrepresentations were made regarding the purchase of these properties as primary residences when in fact the borrowers intended to purchase the properties as investments. Fraudulent loans in excess of $24 million were obtained during the entire length of the scheme. Way has been permitted to remain on bond pending her sentencing, which is set for early next year.