The Undocumented Side Agreement Scam :: Financial Scams

The Undocumented Side Agreement Scam This scam is an old scam, sometimes called an “out of escrow” scam, and sometimes used to inflate assets before buying a home. Some analysts say undocumeted side agreements led to the subprime mortgage crisis. Consider a modest home selling for $50,000 and a potential buyer with little or no …

Difference between correspondent lenders and mortgage brokers

Correspondent lenders are small lenders who do have the right to extend loans on their own risk and have the necessary funds to do so. After a loan is closed a correspondent lender will rarely keep it in their portfolio, selling it to a larger wholesale lender. Sometimes it is hard for the borrower to …

Wells Fargo ghetto loans and mud people

Two former Wells Fargo subprime-loan officers say bank employees targeted predominantly black ZIP codes and churches and deceptively steered prime borrowers into subprime loans. Selling the most profitable product is, by itself, not a crime. Mortgage brokers across the United States did the same thing. In Baltimore, the city filed suit against Wells Fargo. The …

Kick third-party agents out of foreclosure rescue, mortgage modification business

There is no doubt that the Spin Doctors have been successful. They spun the economy into a frenzy that could not be sustained. Others put the spin on the stock market, while speculators put a spin on everyone with high gas and oil prices. Fair and balanced news is so far from the truth it …