JSMedia – An unlicensed mortgage broker pleaded guilty to defrauding his clients and wholesale lenders, and could face up to 30 years in prison. In addition to the fine, he faces forfeiture of $4.7 million in funds he fraudulently obtained. The fraud occurred over a four-year period, from 2016 to 2019, according to the lawsuit. The company that was the victim of the scheme, Home Point Financial Corp., suffered a $2.47 million loss.
On Monday, Brent Kaufman, a former unlicensed mortgage broker, pleaded guilty to defrauding his clients out of $4.75 million in refinancing proceeds. The homeowners who refinanced through Kaufman provided false wire routing information to send the money to his personal bank accounts. Several unlicensed mortgage brokers have been found guilty of similar crimes. However, not all of them are criminals.
In New York, an unlicensed mortgage broker pleaded guilty to stealing $4.7 million in mortgage refinancing proceeds. The money was supposed to go towards paying off existing mortgages of his clients. Instead, it was wired to Kaufman’s personal bank account. This scheme led to foreclosures on many of his victims’ homes, resulting in over $2 million in losses for the homeowners.
Unlicensed Mortgage Brokers Defraud Wholesale Lenders
Another example of fraud involves an unlicensed mortgage broker. He posed as a full-time employee with a strong credit score and offered to obtain a fake employment letter from a family member. The broker offered to process the fake pay stub and get the deal approved through a “B lender,” a type of subprime mortgage lender. The researchers paid the brokers upfront and subsequently lost the money.
The former unlicensed mortgage broker, Brent Kaufman, pleaded guilty to charges that he defrauded wholesale lenders out of over $4.7 million. The money was meant to be used to pay off existing mortgages of his clients. While he was not charged with any criminal offense, his fraud has already landed him in prison. An unscrupulous broker can steal millions of dollars from wholesale lenders.
The recent changes in the federal lending rules have shaken up the mortgage industry. These changes could affect brokers in a positive or negative way. However, the current administration is trying to make the industry more legitimate, but it is still unclear how this will affect consumers. The case has also led to an increased number of lawsuits involving unlicensed brokers. There are still more cases of fraudulent lending, so it is important to be aware of them.
The mortgage industry is shaken by the recent changes in leadership. These changes could either benefit or damage brokers. The case of the unlicensed mortgage broker, Brent Kaufman, was found guilty in federal court of defrauding several mortgage lenders by providing false wire routing information to the lenders. The false information caused the funds to be redirected to his personal accounts. The fraud reportedly wiped out $2.5 million in loans.
The Home Capital Group Inc., Canada’s largest alternative mortgage lender, has cut ties with 45 mortgage brokers. In the past year, these brokers had generated over $1 billion in mortgages for the company. The scandal has shown the ugly side of the $1.3 trillion Canadian mortgage industry, and exposed many cases of fraud. Most of the fraudulent activity is not publicized, and the victims are innocent. The truth is, the fraudsters are the ones who have stolen the homeowners’ money.
A Canadian bank has suspended the operations of four mortgage brokers. Its regulator, the Home Capital Group Inc., cut ties with these brokers in May 2015. During the same period, the five companies generated $1 billion in mortgages last year. This scandal exposed the dark side of Canada’s $1.3 trillion mortgage industry. Unfortunately, much of it remains unreported and hidden from the public eye. A large portion of it has been found to be perpetrated by an unlicensed mortgage broker.
A federal investigation has revealed that the unlicensed mortgage broker who defrauded thousands of consumers has repeatedly failed to make payments on his mortgages. He used a false address for his mortgages, and transferred funds to bank accounts controlled by his company. The unlicensed brokers are no longer operating legally, and the victims are being compensated by the government. It is estimated that over $2.5 million was stolen in this fraudulent scheme.