Saxon Mortgage sued over Wesley Snyder fraud

Charging that some of the nation’s best-known home lenders engaged in ”ostrich-like behavior,” the bankruptcy trustee for the businesses run by disgraced mortgage broker Wesley A. Snyder is suing to recover nearly $24 million in home mortgage payments that fueled Snyder’s Ponzi scheme.

Trustee Lynn Feldman of Allentown Pennsylvania filed the complaint Monday against 11 lenders, including Saxon Mortgage.

For years, Snyder lured borrowers by offering attractive rates and promising homeowners that he would pay their mortgages and use additional money from them to reduce their payments.

But instead of paying their bills, Snyder used the payments from new borrowers to pay off existing borrowers’ accounts.