St Paul women charged in $5 Mil Mortgage Fraud

St Paul, MN: A 29-year-old St. Paul woman has been charged with participating in a scheme to defraud mortgage lenders out of more than $5 million. Lindsey Rae Loyear was charged with one count of conspiracy to commit mortgage fraud.

Loyear allegedly conspired with two others from 2006 through October of 2008, to defraud mortgage lenders in connection with financing real estate transactions in the Twin Cities, including the purchase of Cloud 9 Sky Flats in Minnetonka, MN. The fraud reportedly involved the submission of false information to lenders in order to obtain mortgage loans.

Loyear was a real estate agent and mortgage broker. Loyear allegedly concealed information from potential lenders, including that she had arranged short-term loans to buyers to use as down payment and that she paid cash kickbacks to buyers for purchasing the properties. Altogether, more than 130 units were sold through the scheme, and more than $8 million was transferred to accounts, which were then used to pay kickbacks and share loan proceeds among co-conspirators.

If convicted, Loyear faces a potential maximum penalty of five years in prison. This case is the result of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service.

Many of these fraud convictions appearing today were for crimes done during the height of the mortgage boom (2004 – 2007).  Tighter mortgage lending rules and regulations in place today make most, if not all of these scams nearly impossible to pull off today.

Is it a gift for down payment, or mortgage fraud?

…. From NASDAQ

A genuine gift, meaning no repayment is expected or implied, can help you qualify for a mortgage. But a “gift” that is really a loan in disguise could be problematic or even considered loan fraud, a federal crime with serious consequences.

Click to Read the full story


New Consumer Financial Protect Board goes live today

New Consumer Financial Protect Board goes live today. The CFPB is part of last years Dodd / Frank financial reform disaster bill. In theory, the new agency sounds great. The reality is something completely different.

For starters… they are already going after the wrong people…

Here is another great video from the boys over at TBWS.

Thoughts? Log in and post!

Is refinancing easier than buying a home?

A refinance is just as easy to get as your first mortgage… right?

Many people think that refinancing is easier than buying a home for two main reasons:

1) you already have a loan on the home, you make your payments, so it should be easy to refinance.
2) your current mortgage lender already has all their information, so they with easily refinance you, and they are the best place to call **

Sorry… Not true on either count.

There are many factors that might make it hard to refinance:

First, understand that no matter who you call for the refinance – even your existing lender, you have to go through the full underwriting process again. With that said;

– Your financial situation could have changed. Do you have the same job, same income? Better or worse? How about credit. Better or worse?
– Mortgage loan Underwriting guidelines have changed. The crazy days of every getting a loan are long gone. Be are back to old school traditional financing guidelines. Did you buy the home on a program that no longer exists… like a no documentation loan?
– With all the foreclosures, your properties value probably went down. How does that play into your refinancing options?

Most people refinance for three main reasons.

1) Smaller payment
2) Shorter term
3) Cash out / consolidate debt

The good news is that mortgage rates in MN and WI are amazingly low right now, and lenders are still providing home loans everyday. If you are thinking of refinancing, but have been scared away by thinking you can’t for some of the reasons listed above, you are making a big mistake.

Contact a local MN or WI mortgage company with a licensed Loan Officer. Fill out a full application, and let them review your situation.

You may be very happy with the answer!

** WORD OF CAUTION: Many people make the mistake of just calling their existing lender. Almost exclusively, EVERY OTHER lender will have a better deal for you. Be sure to call more than just your current company.