From Inman News:
Four plead guilty to New Jersey real estate loan fraud
A former real estate broker, loan officer, closing attorney and one of their employees pleaded guilty to a conspiracy to “flip” New Jersey properties and defraud the U.S. Department of Housing and Urban Development of more than $300,000, officials said.
Mario Mendoza, 41, of Union, N.J., was formerly a real estate broker with Weichert Realtors in that city; Kenneth DiPrenda, 42, of East Hanover, N.J., was formerly a loan officer at AMS Mortgage in West Patterson, N.J.; attorney Linda Serrano, 44, of Union, is a private-practice attorney; and Myrium Vaca, 45, of Elizabeth, is an Ecuadoran national and worked, at times, for Mendoza, according to U.S. Attorney Christopher J. Christie.
…
According to the Informations, the conspirators fraudulently induced HUD to insure certain mortgage loans made to unqualified borrowers, enabling Mendoza, DiPrenda, Serrano, Vaca and their co-conspirators to earn hundred of thousands of dollars in profits from the sales of properties financed by the fraudulent loans, officials said.
…
As part of the alleged conspiracy, the defendants and others solicited and recruited individuals who, with false identification, purchased homes in Union County, N.J., and elsewhere, officials said. Many of the homes were being sold by Mendoza’s clients at Weichert, according to officials, and were duped into selling their homes to unqualified borrowers using fake identification.
According to the Informations, DiPrenda, a loan officer, assisted in qualifying the borrowers for HUD-insured loans, officials said. Further, Mendoza, Vaca and others falsified documents for the borrowers’ loan files and then submitted the files to banks and, soon thereafter, HUD, officials said. The false documents included gift letters, credit explanation letters, W-2 form and employment records, according to officials.
As part of the conspiracy, Mendoza often told sellers that their properties were being sold for a price that, unbeknownst to them, was far lower – often by tens of thousands of dollars – than the amount that was ultimately financed through the fraudulently secured HUD loans, officials said.
Ahh yes, maybe the NAR should start airing more of those ethics commercials.
The avalanche will be hitting soon. The stench is strong.
Buyers kick back and watch the collapse.
Some U.S. housing markets have froth – Fed’s Bies
While some U.S. residential housing markets “have a degree of froth,” investment activity in these regions is starting to slow, Federal Reserve Board Governor Susan Bies said on Monday.
When asked by reporters after a speech to a community bankers’ group which particular markets concerned regulators, Bies said: “The markets where the relative growth in housing prices far outpaces the growth of basic employment and population.”
In her speech, Bies expressed concern about practices like “condo flipping,” where condominiums under construction are bought and sold by speculators long before buildings are complete.
grim
This seems awfully close to the HUD scam Tony Soprano pulled.
ah, new jesey,,, this is keeping up with the rest… education , university of medic,,,,, taxpayers contiune to get it good,,,,
anybody marching today?
Pesche, you write like someone else I see online, do you know a “taxfreekiller”?
marching why?
so landscapers Restaurants and other service industries can be subsidized by tax payors paying for illegals healthcare and schooling.
It’s amazing the arrogance of these illegals to demand anything here.
Annon 3:48
Next time you buy lettuce for less than $25.00 a head think about who you should THANK.
The circumstances that surround illegal workers are exactly those that led to the rise of unions in America during the industrial revolution. Whether you like it or not our agricultural industry relies on this cheap labor force. We are already paying for healthcare and schooling for the children. Legalize this workforce and insure they and their families are being treated humanely!!! AS far as I see it, it is the compassionate AMERICAN thing to do.
These workers are not “taking jobs” away from americans- they are performing work that no other American will accept…….until the crash and then we may see some loan officers and realtors out in the fields, but until then take your elitist comments to the supermarket, enjoy your cheap produce and the worker who worked 18 hours a day for $15-20 and lives in shanty with no running water for his children.
I made this last annon comment ando forget to sign it……. also Linda serrano handled our refi a few years ago– YIKES!!!
You pay for the healthcare and more school taxes…good dooer.
As for agriculture…i think it has worked well for years…but what has happened in last 10 years is Mexico sending their unemployed into the US. I can cut my own grass, cook my own food, watch my own kids and clean my own clothes. When I grew up these are tasks we did in our house and do today in my own household. To many lazy ass Americans eat crappy fast food, to lazy to maintain their own yard or to lazy ass to spend more time with their kids. It’s called responsibility.
I do not need these services and most americans can’t really afford them while most are credit card rich and cash poor.
And by the way i grow many of our vegetables in the spring summer and fall. And i pick it myself too.
Get off your crusty ass and be more self sufficient.
From my viewpoint, food is not cheap at all. I’ll bet only a tiny fraction of the cost is due to farm labor. What is the biggest contributor? I suspect high energy prices needed to make fertilizer, run farm machinery, and distribute/truck the stuff.
north mexico ,, thats what we got
now,,, you aint see nothing yet.
Hilliary got started today
Richard,
Isn’t the point to LEGALIZE this visiting labor pool? Who (besides unemployed realtors) are going to fill these agricultural positions?
I agree that we live in a overconsuming, materialistic and shallow society-the same mentality feeding the housing bubble…
It will be the lower income Americans who will suffer most from the “suppressing wage inflation.” Those who can barely feed their children now on meager low incomes and forget about affordable housing. You make a great living and are frustrated by the fact that you can’t find something decent to buy. Walk a day in their shoes!!
Annon
Get off my crusty $SS and become more self sufficient???You know absolutely nothing about how we live our lives. I also watch my own children, do my own laundry and most likely contribute more time and money to volunteering in a year than you will in your lifetime. You go ahead and act glim about your little gardening and I’ll spend some selfish time working on issues that will feed and clothe some area homeless TODAY!
And also pick up the Heathcare and school tabs Mr. Generousity when you are at it.
that would be Mrs. Generosity-
you are most likely a retired union guys living on a fat cat pension- while the younger generation must suffer to pay for your life style…..legacy costs are KILLING american producers…can you spell GM?
The whole point in legalizing these workers is so that they become accountable ie, they must pay back taxes, show employment and also basic knowledge of english…….how can this be bad?
may be blonde, but not dumb…….
Are you a bleeched blonde or the real thing?
And no I am not some old crusty union guy.
The young people are getting completely screwed by the old geezers.
I a tired of people speaking spanish all around and carrying a mexican flag. They like that flag so much than go back don’t take from us and use this country as a disposable item.
rw i’ve walked in their shoes….legally. illegal activity should not be condoned by anyone. the people that hire illegals and the illegals themselves should be held accountable. you cannot grant amnesty to those that break the law. i see no flexibility on the issue.
there are plenty of people who would do their jobs if the wage was better and it would be better if america didn’t allow this illegal activity to go unabated to keep wage pressures down. i feel bad for those looking for a better life but you need to go through legal means to do so else they’re taking away not only from us but our children.
Richard
I do not condone illegal behavior, the whole reason I support the immigration legislation is that it LEGALIZES the work/workers and can then be regulated. Right now, no taxes are being collected, the workers are marginalized and the US govt/citizens and the immigrants both lose. You are right// now only big business ag is winning. I think we see things similarly, but see the answer or solution in a different light.
BTW Annon- real blonde- and I can spell BLEACH…not meant to sound mean…..:)
“Whether you like it or not our agricultural industry relies on this cheap labor force.”
That’s a myth. When I was in high school I did all sorts of crappy jobs, for minimal pay.
We are a nation of laws, and those who break the law should be punished, and certainly not rewarded.
These people should be deported:
Link 1:
http://www.mexica-movement.org/granmarcha.htm
Link 2:
http://tinyurl.com/fvdh8
Scroll down for many pictures, quite a few depicting threats to Americans.
“Isn’t the point to LEGALIZE this visiting labor pool?”
What’s next, legalize car theft because there are too many car thieves in jail?
I don’t mind US citizens wanting to change a law with which they disagree, but until that US law changes, those who break the law should pay a price.
I have said many times I do not condone breaking the law. The car thief analogy is a little extreme.
Laws throughout time have been adapted as societies modernize and evolve.
There was a time in our not so recent past when it was illegal for blacks and women to vote or own property. Too bad blogs didn’t exist then- be cool to see which bloggers would have NEVER allowed that……..
OK back to real estate and speaking of legalities. Just had a friend waive a mortgage contingency to get a house??? Yes- they are still wrapped up in the mania.
What are the consequences of doing this? Why do so many realtors suggesting this as a way to sweeten a deal?
Can anyone tell me worst case scenarios?
To All:
Here is a good article about loan fraud. Check it out.
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF95A07EE%2D9C67%2D405F%2D8688%2D9542865B95B6%7D&siteid=mktw&dist=nbk
These people should be deported:
You want to deport 11 million people ? You’re a lunatic.
Just had a friend waive a mortgage contingency to get a house??? Yes- they are still wrapped up in the mania. What are the consequences of doing this? Why do so many realtors suggesting this as a way to sweeten a deal? Can anyone tell me worst case scenarios?
Worst case situation. They can’t get a mortgage, or the mortgage takes too much time to process. The homeowner can claim they are in breach of contract and sue. They could lose their deposit. If its 5%, there go 25-30K.
I would NEVER do this unless I planned an all-cash deal — not even if I were 99.9% sure that I could get a mortgage.
Instead, get pre-approved. Shouldn’t cost more than a 100 bucks at most. If someone else is willing to do it, and submit to a buyer, let them do that.
These people should be deported:
Link 1:
http://www.mexica-movement.org/granmarcha.htm
Link 2:
http://tinyurl.com/fvdh8
Scroll down for many pictures, quite a few depicting threats to Americans.
I saw these links and think this is an absolute outrage. These people want to take this country over. I suspect that all these protests aren’t so spontaneous. These are being planned and probably inspired by radical islamists and the communists. This country has many enemies that want to break this country.
And yet, we have many people on this blog unwittingly (and in some case, intentionally) helping these people by hoping the real estate collapses. Given the threat, don’t some of you really think we ought to be talking positively about real estate markets? Don’t you think that a better thing to do is support our real estate markets in order to support our country? What happens if the negative talk and the federal destroys real estate?
I think our attention could be diverted while the radicals and american haters of the world (including the radical mexicans described at these links) take advantage of us.
I suspect that all these protests aren’t so spontaneous. These are being planned and probably inspired by radical islamists and the communists.
You forgot to mention Martians and Freemasons.
Don’t you think that a better thing to do is support our real estate markets in order to support our country?
Why stop with real estate markets ? What about the gold markets, the oil markets, the pork belly markets ? I’m looking forward to $100 a strip bacon and I’m un-American if I oppose it.
you cant call out the national guard in new jersey,,, they all
hispanic
OK back to real estate and speaking of legalities. Just had a friend waive a mortgage contingency to get a house??? Yes- they are still wrapped up in the mania.
What are the consequences of doing this? Why do so many realtors suggesting this as a way to sweeten a deal?
Can anyone tell me worst case scenarios?
8:22 PM
Worst case scenario- turned down by a mortgage … still must purchase home or be sued
KL
“Why stop with real estate markets ? What about the gold markets..”
I see some people here prefer the “cute” form of dialogue where they try to put down others.
Let’s see how cute you are when the radical mexicans described at the link push for open borders. We live in a very dangerous world today. It is not unrealistic to assume that other people might be funding, supporting and organizing them in an effort to disrupt this nation. Where did these protests come from? How did these people become so emboldened to do this? These are the questions you need to ask yourself.
Don’t try to trivialize the points I raised. Supporting markets is not usual, except maybe to some bears here. It’s quite common to suspend trading in securities when they come under selling pressure. The point is on real estate is to avoid getting to that point to begin with. This negative talk is not helping anyone and it is not in the interests of this country for people to be wishing for a collapse.
“You want to deport 11 million people ? You’re a lunatic.”
Canada just started deporting illegal aliens in blocks of 20,000, that’s a start.
Why would an illegal alien not be deported? Your point is that the number of illegal aliens diminishes the validity of the law? A weak argument at best.
“We live in a very dangerous world today. It is not unrealistic to assume that other people might be funding, supporting and organizing them in an effort to disrupt this nation.”
Actually, while I disagree with much of what reinvestor101 writes, he’s right about this one.
These “Europeans go back to Europe!” and “This is our land, you stole it!” people are organized, in part by “International Answer” which is a Stalinist front group, backed by the “Workers World Party.”
The nuts at “International Answer” will side with any organization that seeks to undermine the United States.
Here’s an “Answer” freak at a rally in March 2004:
http://tinyurl.com/fxof6
And another “Answer” freak at the same rally…
http://tinyurl.com/fujtv
“I would NEVER do this [drop a mortgage contingency] unless I planned an all-cash deal — not even if I were 99.9% sure that I could get a mortgage. Instead, get pre-approved. Shouldn’t cost more than a 100 bucks at most.”
What if you were already preapproved for a mortgage? In that case, it would seem that contingency is not much to drop.
If someone drops the contingency and can’t get a mortgage, they’re screwed, but if someone has preapproval, with documentation already given the lender with a credit check, it doesn’t seem that risky.
Basically it would lock you into the deal, which is why the seller may lean towards such an offer.
What if you were already preapproved for a mortgage? In that case, it would seem that contingency is not much to drop.
The house could still fail appraisal. There could be other factors that make it unsuitable for a mortgage. Some lenders won’t lend to a house that doesn’t have access or has a shared well or the like. Pre-approvals are generally preliminary.
I wouldn’t remove this contingency unless the house was an absolute screaming bargain, or there was some other out.
thanks all for insight on mortgage contingencies. Seems like a lot of risk in a declining market.
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Linda Serrano is getting what she deserves..she hurts people and she comes across so sweet
Yeh, I hope Linda Serrano gets the maximum plenty…she deserves it!!!!
IT’S ABOUT TIME SOMEONE GOT LINDA SERRANO…
Whoever is saying these things about Linda Serrano needs his/her head examined; stop worring about her and get a job or do something productive with your life….it’s too short
Linda Serrano needs to find a job since she can no longer practice law
Linda Serrano can no longer practice law??????????
Does anyone know how long Serrano will get in jail?
Who the hell is Linda Serrano?
Linda Serrano is a wonderful person, generous, kind and compassionate; I’m sure whoever is behind these lies will not have the last laugh since he/she is evil and useless.
Then why was Linda Serrano arrested by the FBI and now in Federal Court if she is so wonderful??????
since when does the FBI issue press release on wonderful people
Yep…FBI only deals with the scum of the earth..
Linda Serrano did nothing wrong, she got tricked and pulled into this mess by that disgusting realtor mario Mendonza, she is in this mess because she is so kind and generous and she would never hurt anyone.
sure, sure…Linda Serrano is very intelligent, she knew exactly what she was doing…she’s not stupid..she just greedy