In the conclusion to a scheme that began in 2006, a fourth defendant will face a criminal sentencing later this fall. The white collar crime case involved mortgage applications for 12 luxury homes in Florida. Three other defendants-all purported home buyers-are already serving prison terms. This defendant served as their realtor.
As the former executive vice president in charge of fraud investigations at Countrywide Financial, Eileen Foster has a keen understanding of how the mortgage industry works. She has now acknowledged that mortgage fraud not only occurred at Countrywide, but was in fact a common practice. The concerns over mortgage fraud at Countrywide have followed it to their new owner, Bank of America. Public pressure to hold home lenders accountable for misrepresentations is at an all time high.
Over eight months ago mortgage companies and giant banks across the nation promised to clean up their acts when it came to mortgage documents. As the housing bubble burst, and the mortgage industry collapsed, many large lenders and banks came under scrutiny for their foreclosure practices.