LexisNexis® Legal Newsroom
Mortgage Fraud Continues to Climb According To LexisNexis® Mortgage Asset Research Institute

Incidents of Mortgage Fraud Increase 7 Percent from 2008 to 2009 Florida, New York and California Top List of States with Highest Mortgage Fraud and Misrepresentation Rates New York, NY – Reported incidents of mortgage fraud and misrepresentation by professionals in the mortgage industry...

Victims of Mortgage Fraud Bar Themselves from Restitution

A "victim's" participation in a fraudulent mortgage scheme, regardless of criminal liability, will generally exclude the victim from restitution, according to a recent Massachusetts decision. With the help of Ryan Lazar, a loan originator, R.L. and B.L. participated in a fraudulent...

A Tale of Two Bank Experiences in Today's New York Times

How do I know when the weekend has truly arrived? For years, the weekend arrived at the moment that I sat down to a leisurely breakfast while reading Joe Nocera's column (and I guess, after today [Note: this article was originally posted Mar. 26, 2011], I'll just have to enjoy reading his...

Nancy Rapaport: A Tale of Two Bank Experiences in Today's New York Times

Read this post on the LexisNexis Corporate & Securities Law Community.

First Major Criminal Conviction Related to the Mortgage Meltdown

The Justice Department is celebrating this week after finally landing a major criminal conviction in the aftermath of the mortgage meltdown. The Justice Department was able to stick 14 counts of fraud and conspiracy on Lee Farkas in what is reported to be a $2.9 billion mortgage fraud scheme. Mr...

U.S. Government Sues Deutsche Bank, Alleging Mortgage Fraud

NEW YORK - (AP) The federal government has sued Deutsche Bank. It alleges the bank committed mortgage fraud by repeatedly lying so that it could join a government program that insured mortgages. The Manhattan lawsuit seeks to recover some of the hundreds of millions of dollars in insurance claims that...

Los Angeles Lawsuit Claims Deutsche Bank Is 'Slumlord'

LOS ANGELES - (AP) The city attorney sued Deutsche Bank on Wednesday, claiming the giant international lender illegally evicted tenants from foreclosed properties and left dozens of homes and apartments to rot, many in low-income neighborhoods. The suit, filed in Los Angeles County Superior Court, accuses...

Lengthy Prison Sentence Affirmed For Former Florida Beekeeper Of The Year Turned Mortgage Fraud Kingpin

A federal appeals court recently affirmed the 28-year prison sentence doled out to Phillip Hill, a Georgia man convicted of mortgage fraud who was once named the beekeeper of the year in the state of Florida (proving once again that all things foreclosure have some connection to the Sunshine State)....

Mortgage Litigation: New California Case (Boschman v. Home Loan Center) Holds That Plaintiffs Sufficiently Alleged a Claim

In Boschman v. Home Loan Center, Inc. (California Court of Appeals, Fourth District) on a demurrer by the Defendant the court reversed the holding at the trial court level and has held that the borrowers who took option adjustable rate mortgage loans adequately alleged in their Complaint that the...

Telling the Whole Story: The Predatory Lending, Securities Fraud and Forgery Prove Each Other

As a general rule, securities fraud plaintiffs benefit from telling the whole story while defendants benefit from dividing and conquering claims: "Well, that allegation's no big deal; there's not much evidence for that one; I don't see the scienter in that one." The defendants...

Ballard Spahr LLP: California Legislature Streamlines AG Investigations of Mortgage Fraud

The California Assembly and Senate unanimously passed identical bills to simplify the California Attorney General's ability to launch and conduct statewide grand jury mortgage fraud investigations. The twin bills were sponsored by Attorney General Kamala D. Harris as part of a six-bill package titled...

LexisNexis' 14th Annual Mortgage Fraud Report

This exclusive LexisNexis research report, the 14th Annual Mortgage Fraud Report, is available today! These annual reports examine the current composition of residential mortgage fraud and misrepresentation involving industry professionals in the United States. In addition, this year we are including...

Bank of America to Pay $375 Million to Settle Fraud Claims with Insurer

NEW YORK - (Mealeys) Bank of America Corp. and its Countrywide Home Loans Inc. affiliate will pay $375 million to a financial guarantee insurer to settle claims that Countrywide misrepresented the standards used in underwriting mortgage loans that served as the basis for five securitizations of mortgage...

HOLA Does Not Preempt Fraud Claims against Mortgage Loan Servicer, California District Court Rules

The Southern District of California recently held that claims against a mortgage loan servicer are not preempted by the Home Owners Loan Act (HOLA) when they rely on "general allegations of misrepresentation" and are only "incidental" to the servicer's lending practices. The...

Federal Jury Finds Bank of America Guilty of Mortgage Fraud

NEW YORK — (Mealey’s) A federal jury on Oct. 23 found Bank of America Corp., as successor to Countrywide Financial Corp., and a former Countrywide employee guilty of engaging in a scheme to defraud Fannie Mae and Freddie Mac in connection with Countrywide’s residential mortgage lending...

Bank of America to Pay Freddie Mac $404M Over Sale of Subprime Mortgage Loans

CHARLOTTE, N.C. — (Mealey’s) Bank of America Corp. announced on Dec. 2 that it has reached an agreement with Freddie Mac to pay $404 million “to resolve all remaining representations and warranties claims for residential mortgage loans sold to Freddie Mac through the end of 2009.”...

17 Years Later, Two Fugitives Surrender and Plead Guilty to Bank Fraud

Zahid and Riffat Ali, who have been wanted by federal authorities on bank fraud charges since 1996, are fugitives no longer. They surrendered to agents of the FBI at San Francisco International Airport after their flight from Pakistan arrived, and they now have pleaded guilty in federal court in San...

Real Estate Business Owners And Title Company Executive Indicted In Multi-Million Dollar Mortgage Fraud Scheme

Federal authorities have arrested three business owners and a title company executive in connection with a mortgage fraud scheme that involved approximately 800 real estate properties and about $45 million in loans. The two-count indictment charges 58–year-old Stephen Mark Hilliard, owner of...

If You Thought that JPMorgan Chase Was Finished Settling, Think Again. Now, It Pays $614 Million to Resolve More Mortgage Loan Charges

JPMorgan Chase has reached yet another settlement with federal prosecutors. Now, it will pay $614 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees by the Department...

Stamford Attorney Admits Role in $7 Million Mortgage Fraud Scheme

Christopher Brecciano, an attorney in Stamford, Connecticut, has pleaded guilty in Bridgeport federal court to conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of Connecticut properties. According to court documents and statements made in...

Judge Orders Banks, Officer to Pay $1.3 Billion For Mortgage Fraud

NEW YORK — (Mealey’s) A New York federal judge yesterday ordered Bank of America Corp., as successor to Countrywide Financial Corp. and Countrywide Home Loans, and a former Countrywide officer to pay $1.3 billion in damages in connection with Countrywide’s residential mortgage lending...

Bank of America to Pay Nearly $17B Over Handling of Subprime Mortgages

WASHINGTON, D.C. — (Mealey’s) Bank of America Corp. will pay nearly $17 billion to settle claims that it and its current and former subsidiaries, Countrywide Financial Corp. and Merrill Lynch, engaged in fraudulent activity with regard to their origination, underwriting and sale of subprime...

U.S. Government Sues Five Mortgage Lenders for False FHA Claims

by S. Mohsin Reza , Jason Manning and John C. Lynch On September 28, the U.S. government filed a lawsuit alleging that a purported charitable “counseling fund,” five mortgage lenders, and their principals defrauded the United States and various banks insured by the Federal Deposit Insurance...