Lawsuit Describes Conduct Reminiscent Of 2004
A report from the Denver Post in Colorado. “Four ex-employees accuse Aurora-based American Financial Corp. in a lawsuit of firing them after trying to expose the company’s alleged mortgage fraud. The mortgage originator allegedly misled at least a half-dozen banks and finance companies with faked documents and consumer loan applications, according to the whistle-blower lawsuit. The action in Arapahoe County district court claims managers at the company knew of the alleged mortgage fraud the employees discovered and, in some cases, worked hard to try to cover it up.”
“The employees – Stacia and Chris Springer, Steffen Mehnert and Sandra Reynolds – say in the lawsuit that they were suspended and then fired after bringing their concerns to higher-ups in March 2017. Chris Springer, Mehnert and Reynolds were mortgage consultants, and Stacia Springer was a pre-qualification specialist. The company defended its track record in a statement issued to The Denver Post, saying it will defend itself ‘vigorously against this meritless lawsuit and the false allegations …’”
“The lawsuit describes conduct reminiscent of the type that helped bring about the real-estate collapse and ensuing financial crisis that began in 2004. Among the allegations the quartet make against American Financing include intentionally falsifying loan information, faking signatures, withholding negative financial information about an applicant and faking compliance with key deadlines – all of them critical to whether a bank will approve or buy an existing loan.”
“Some of the alleged fraud was brazen, including assertions that potential borrowers’ income tax returns were intentionally withheld to hide potentially adverse information, relying instead on their W-2 forms.”
“The 23-page lawsuit lays out a detailed timeline of how the employees each reported concerns of fraud to supervisors over several weeks, only to be told not to talk about it to others, or not to come to work at all. After their suspension, the lawsuit says company supervisors looked through the employees’ desks and computers, allegedly shredding paperwork that related to the suspected fraud.”
“The employees said they were fired in retaliation for talking to a lawyer about their predicament. The lawsuit says a complaint about the alleged mortgage fraud was filed with the Colorado Division of Regulatory Agencies, which oversees mortgage brokers through its division of real estate, but that nothing was done.”
It’s been many moons since I posted a breaking story, but this just hit the intertubes minutes ago and could be significant.
‘Among the allegations the quartet make against American Financing include intentionally falsifying loan information, faking signatures, withholding negative financial information about an applicant and faking compliance with key deadlines – all of them critical to whether a bank will approve or buy an existing loan.’
‘Some of the alleged fraud was brazen, including assertions that potential borrowers’ income tax returns were intentionally withheld to hide potentially adverse information, relying instead on their W-2 forms.’
Oh dear, there’s gonna be a crow banquet for some posters here if this holds up.
Crapshooters and green handshakes.
Are they going to get prosecuted this time? Prolly not.
Regards,
Roidy
“Are they going to get prosecuted this time? Prolly not.”
“The lawsuit says a complaint about the alleged mortgage fraud was filed with the Colorado Division of Regulatory Agencies, which oversees mortgage brokers through its division of real estate, but that nothing was done.”
It’s a private club, and they ain’t in it.
What’s wonderful about having regulating agencies is that these agencies give schmucks the impression that things are regulated.
If true they defrauded BoA and Wells Fargo among others. These borrowers probably won’t be able to make payments. How many mortgage fraud indictments/conviction reports did I post here? Heck they are still putting people in jail for 2007 stuff, I just don’t bother to put it up.
Here’s the thing: why commit fraud in oh so hot Colorado? Doesn’t ever shack and air box have multiple qualified buyers in bidding wars?
Wow.
Yes of course, lending standards are very strict these days, and there is a shortage of houses. We’re practically like Canada.
Bank of America,Wells Fargo, and a whole bunch of banks were defrauded last time. These large banks understand that they will be made whole on their bad debts. Their attitude is “What, me worry?” So, they don’t.
Regards,
Roidy
I don’t understand the focus on this stuff. “Oh some people are above the law!” Has that not always been the case? Ultimate justice hasn’t been achieved, slit your throats mere mortals in outrage at the moral hazard! You first.
Free Jon Corzine!
Local radio is saturated with their commercials, the worst of which says they’ll get you into your “own home” for only $1,000 and that it is cheaper than trying to come up with $5,000 for first month, last month, and deposit on a rental.
“into”
There’s that word again…
I just now typed into Google: “real estate scams california” and received back …
(ta da)
“About 554,000 results (0.60 seconds)”
I did the same search with and without quotes limited to the past year.
Without quotes: 25 pages X 12 results/page = 300 results
With quotes: no results.
Regards,
Roidy
Life is stranger than fiction it seems. I’ve been trying to sell our house (bay area) since last fall and out of the 4 offers we were willing to accept, all fell out of escrow because of the weak condition of buyers. None had more than 3% down payment. We bought it in 2011 thinking we got a deal but at this point we’ll be fortunate to break even. There is no choice because of sick parents back in Wisconsin.
Where in the bay area? My wife would love to buy a bay area house for a 2011 price but I haven’t heard of such a thing in a long time. And I’m not as excited about that idea as she is.
Wait, did you re-marry? Congrats. And thank you for actually doing rings and papers, unlike those Millenials.
“My wife would love to buy a bay area house for a 2011 price but”
“Wait, did you re-marry? Congrats.”
It is an amazing way to begin a sentence.
https://www.youtube.com/watch?v=2RubvPkuC6E
“rings and papers”
Don’t be a betabux. Just don’t.
Don’t be a betabux. Just don’t.
Hahah…I don’t know all the implications of that word…but she has more money than I do.
Wait, did you re-marry? Congrats. And thank you for actually doing rings and papers, unlike those Millenials.
Yeah, married a Chinese woman just in time to get forced to move back to the USA due to the Koreans buying my old employer and wanting to do my job with their own people. We’re still trying to figure out whether it’s worth the IRS hassle with her Chinese business interests to get her a green card.
My wife
Congrats!
I find that hard to believe. Where are you located? East Palo Alto? Or waaaaay out of the popular areas? How could you be even close to just breaking even compared to 2011? Plus, you at least got to live “rent free”.
Maybe you should make it clear you’re looking for a lower price but a solid 20% down, pre-approved buyer. I’ve been jerked around by listing prices way out of line with what the bids actually come in at - so maybe you’re not attracting people because they think they can’t afford your place - that they’ll have to bid over-asking. ???
Plus, you at least got to live “rent free”.
If “breaking even” is selling for what you paid originally, that isn’t “rent free”, more like a partial rent refund.
https://www.yelp.com/biz/american-financing-aurora
“9/24/2016
I’m a Realtor and have had many bad experiences with this company. Most recently Pam Gifford pre-approved some buyers but failed to do the complete due diligence on some past foreclosures. She told me their file was “completely underwritten” and they were solid buyers. I’ve been working with these folks for over 3 months. Unfortunately (or rather fortunately) we haven’t been able to find the right house yet. IF we would have gone under contract I’m 100% certain the loan would have not been approved and buyers would have been out $$$ in inspection fees ($300-$500), appraisal fees ($500-$1000) and possibly could have lost earnest money ($5-10k).
DO NOT USE AMERICAN FINANCING!
Use a lender who your REALTOR recommends!
6/8/2017
HORRIBLE. No wonder they have to advertise so much. I called about a refi with an interest in getting cash because I had a good amount of equity in my home and was going through a divorce. I was told I could get a good amount of cash out, with a lower interest rate and a lower payment. I decided to go forward based on the numbers that were provided to me. After the appraisal, which just happened to be the same value I estimated initially, the representative came back with numbers that were completely different - significantly less cash and a higher monthly payment. I called, upset because I would not be able to go through with the appraisal and she told me the appraisal fee ($600) would be waived. I was forced to put my house on the market. After reconsidering and consulting with a more competent mortgage company, I found out that I have to get the appraisal transferred from American Financing to the new mortgage company. I was also told that I would have to contact the accounting department at American Financing to get the fee paid. A very rude person in the department told me that I have to pay it. After bringing up the fact that I was told the appraisal fee would be waived because I felt I was misled by American Financing, I was told that because I was using a different mortgage company, I would have to pay the fee. Horrible company. Ignore the annoying radio ads and use a reputable company recommended by your realtor!!!”
There’s more…
radio ads? how gauche’!
of course, NPR only has support
from __________ worthy family foundations. and listeners like you.
(REALLY, Benjamin! must EVERYONE simply wander in here?)
oh dear.
Ben. Add to the mess in CO with the contractor defect law and turns out the affect has been builders will not build certain types of housing esp multi family and condo cause of the fear of this law. Movement abounds to amend said law.
I’m in Castle Rock a few times a month. Meet me at Rockyard for a beer.
But, but, it’s Denver…
Everyone wants to live here.
Legal pot!
Mountains.
All of California wants to move here.
And they need fraud to keep the plates spinning.
Fraud, divorce, remarry, China. It’s all good.
California has mountains and legal pot too.
The Front Range is the ugliest hump-a-rocks I ever laid eyes on.
I do a lot of hiking in the Front Range mountains, and respectfully disagree. It’s beautiful back in the mountains and forests.
All of California wants to move here.
So far in California I haven’t met anybody who *wants* to move anywhere else. There are definitely some who *need* to in order to maintain their desired standard of living though.
So far in California I haven’t met anybody who *wants* to move anywhere else.
You must not get out much.
Probably a fair statement. I interact with employed tech workers regularly who complain about prices but generally like it here. That’s who I’m surrounded by.
As a SoCal native I don’t *want* to move but I also don’t want to pay ever increasing taxes for the FSA, illegals and public employee pensions and benefits while watching the price of necessities skyrocket like gasoline and electricity for all their environmental pet programs.
Here in LA county, our sales taxes are going up 1% by the end of the year. .5% of that is to fund homeless programs caused by the above.. It’s a never ending cycle.
Oh - and can’t wait for California’s single payer plan. I get to pay for EVERYONE’S health care - even ILLEGALS.
Venezuela by the Pacific no doubt. Let it burn.
Notice how oil has tanked since Albuquerquedan stopped posting here?
He didn’t stop posting, I blacklisted that ungrateful asshole.
Bad word filter didn’t work.
Deadbeat Nation.
http://www.businessinsider.com/credit-card-defaults-have-spiked-as-lending-standards-fall-2017-6
Moody’s: Sharp rise in charge-offs indicates deteriorating underwriting standards among US credit card lenders
https://www.moodys.com/research/Moodys-Sharp-rise-in-charge-offs-indicates-deteriorating-underwriting-standards–PR_367899?WT.mc_id=AM%7ERmluYW56ZW4ubmV0X1JTQl9SYXRpbmdzX05ld3NfTm9fVHJhbnNsYXRpb25z%7E20170608_PR_367899
So… given that illannoy is gonna have to be downgraded further and debt write downs inevitable…Is mr banker the banker for the debt hole that is illannoy?
Housing bubble effect on seniors
https://www.yahoo.com/news/hundreds-oakland-senior-citizens-wait-002830788.html
excerpt:
There was an unmistakable sign on Thursday of just how severe the affordable housing crisis is in Oakland. Hundreds of senior citizens stood in line, many of them overnight, for a shot at a waiting list for subsidized housing.
“I’m Anita Hoargarth.”
“Buck Russell: [Staring at it] I’m Buck Melanoma. Moley Russell’s wart.”
https://www.youtube.com/watch?v=xEt5dEOcW0I
The number of EU nationals looking to move to the UK and rent has fallen in the year since the UK voted to leave the European.
This is according to flatsharing website SpareRoom, which says that traffic from prospective EU tenants has increased by 4.35% in the last 12 months, down from 14.7% the previous year.
The website says that the number of prospective tenants looking to move to the UK from Eastern European countries has fallen.
Between July 2016 and May 2017, the number of Slovakians planning to move here fell by 8%, while the proportion of Poles dropped by over 5%.
https://www.lettingagenttoday.co.uk/breaking-news/2017/6/fewer-eu-nationals-looking-to-rent-in-the-uk-since-brexit?source=newsticker