FACTS
A convicted financial crime felon, whose conviction has been widely reported in the press and which is known to every person working on the NMLS, submits an MU form and applies for a state MLO license.
NMLS cannot reject issuing a unique identifier number on its own accord. The system will validate only that the there is no other individual with the same date of birth and Social Security number when an individual account request is received, if there is no match, a user name and temporary password will be issued along with the NMLS Unique ID number.
NMLS on its own initiative cannot retract or “pull back” the unique identifier number once it has been issued. NMLS would not retract an ID number for any individual who has created a base record.
Therefore it seems that a convicted felon, currently residing in the Graybar Hotel, can apply for a license through the NMLS and receive a unique identifier. Now if the person also gets approved or renewed by the state licensing that person can do loans from the Graybar Hotel if listed as a branch office of the broker. If the person is a broker then it becomes the main office. Just imagine the advertisements in the Graybar Daily Informant.
MORAL
Now as point in fact I am personally aware of at least one instance where the licensee renewed his license from the Graybar Hotel and it was renewed while he was in prison. I trust this addresses the questions I have received lately. There have been quite a few over this issue.
NEVADA ATTORNEY GENERAL ARRESTS TWO IN MORTGAGE PAYMENT THEFT SCAM
FACTS
On Feb. 3, the Nevada Attorney General’s announced that Joseph Yorkus and James Bartczak, both of Las Vegas, were arrested for allegedly operating a scam intended to steal mortgage payments from homeowners.
It is alleged that Yorkus and Bartczak set up Great Western Business Services to steal homeowners’ mortgage payments by fraudulently claiming the mortgage holder’s loan servicer had changed. This scam would potentially result in putting the victim homeowners in default with their actual mortgage servicers.
The scam involved sending letters to homeowners falsely stating that servicing of the homeowners’ loans had been transferred from Bank of America to Great Western Business Services. The letters instruct homeowners to send their mortgage payments to Great Western Business Services instead of the true servicer, Bank of America.
The alleged scam would result in victims unknowingly missing one or more mortgage payments which could result in a potential notice of default and foreclosure, despite the fact that the homeowner had actually made their payments, albeit to the scammers instead of their true loan servicer. (nvag2311)
MORAL
Based upon the limited knowledge I have and in representing many people, the Nevada Attorney General’s Office does not take kindly to this type of rip off. I trust they have good legal counsel. They will need it.
LAS VEGAS MAN INCARCERATED FOR MORTGAGE SCAM AGAINST SENIOR CITIZENS
FACTS
On Feb. 4, District Court Judge Linda Bell sentenced Thomas F. Gentile to six months in the Clark County Detention Center in connection with an equity skimming case.
Gentile, who conspired with Justin Sabo to defraud a local couple of the equity in their home, pled guilty to one count of Theft–Obtaining Money in Excess of $2,500. The charges stemmed from the group’s involvement in a scheme to fraudulently obtain a mortgage loan against a property owned by Gentile’s former employer without his knowledge or consent. The victims are both over the age of 60.
Gentile was sentenced to serve a term of 24 to 120 months in the Nevada State Prison for his part in the scheme. The sentence was suspended but Gentile was ordered to spend the first six months in county jail.
Gentile’s co-defendant was given probation for his part in the crime as well. He avoided jail by paying a significant amount of restitution to the victims who included the homeowners and the hard money lenders who provided the money for the loan. The restitution order mandates that the defendants repay the costs and attorney fees incurred by the victims in their civil case filed to clear the title to the property. (nvag2411)
MORAL
Restitution will go a long way to keeping you out of prison and those Nevada prisons are cold in the winter.
ELEVEN IN NEW JERSEY GUILTY OF PROPERTY FLIPPING AND MORTGAGE FRAUD
FACTS
On Feb. 9, Frank Corallo, a former loan officer, was sentenced to 51 months in prison in connection with a mortgage fraud and property-flipping scheme involving rental properties in Paterson, N.J., after having pleaded guilty to the charges.
Corallo conspired with several others while working as a loan officer and process at U.S. Mortgage Corp. During that time, Corallo specialized in brokering subprime loans. At the direction of his superiors at U.S. Mortgage, Corallo helped pay off several mortgage loans that U.S. Mortgage had originated fraudulently. Corallo brokered new, fraudulent subprime loans to pay off the old loans and provide additional money to other participants in the scheme. In addition to the prison term, Corallo was sentenced to three years of supervised release and ordered to pay $1,034,956.74 in restitution.
Corallo’s case is part of an ongoing investigation by the U.S. Department of Housing and Urban Development Office of Inspector General, the Federal Bureau of Investigation, the U.S. Postal Inspection Service and Internal Revenue Service-Criminal Investigation into fraudulent Federal Housing Administration-insured and conventional mortgage loans originated by various New Jersey mortgage companies. The investigation has resulted in more than a dozen guilty pleas from current or former New Jersey residents, the longest sentence issued until now being 40 months.
Corallo has been in custody since his Oct. 21, 2010, arrest on a conspiracy to commit wire fraud charge in an unrelated mortgage fraud case. (usattynj29111)
MORAL
The prosecutors went back to mortgages that occurred seven years ago and the investigation is still on going.
THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE
