Five indicted in $20 million Idaho mortgage scam

[flashl]

Source: Reuters

SALMON, Idaho (Reuters) - An Idaho bank officer and four others accused of masterminding a mortgage scam were indicted in Boise on Wednesday on charges of defrauding an Idaho bank of $20 million, according to federal prosecutors.

Authorities say the accused, including two building contractors, a mortgage broker and a Realtor, all from the Boise, Idaho area, provided false financial data and fraudulently fronted applicants -- known as straw buyers -- in attempt to obtain 49 house loans.

The FBI has linked a jump in mortgage fraud to "an ideal climate" created by the slump in the U.S. housing market.

Under the Idaho mortgage scheme, identifying information submitted by straw buyers was used on loan applications that in many cases overstated the income and credit rating of ostensible borrowers and falsely claimed the funds would be used to build owner-occupied homes, according to a news release. The group collected more than $242,000 in assorted fees related to the mortgage scam, officials said.

...

A report in March by the Mortgage Asset Research Institute examining residential mortgage fraud and misrepresentation in the United States found Florida ranked No. 1 in 2007, followed by Nevada, Michigan, California and Utah.

Reuters

Read more: http://www.reuters.com/article/domesticNews/idUSN2142808620080522

[Connonym]

1. I'm normally not a fan of the death penalty but asses like this should have their head on a stake

to serve as a warning to the rest of their vile breed.