In the first, three defendants
are alleged to have used fraudulent loan applications with phony incomes and jobs to qualify buyers who had previously been denied home loans. They told the buyers they could rent out the homes and "flip" them for profit, according to the charges. Eight lenders, including failed Washington Mutual and New Century Mortgage, made $6 million in loans on the properties, the indictments stated.
The 13 homes have since been foreclosed, authorities said. Wagner said Friday the buyers aren't being charged with wrongdoing.
In the second case,
Sacramento Bee, 5/21/10The indictment says the four persuaded homeowners to sign over deeds to their homes with promises that they could rent and buy back the homes in two years. Instead, the four allegedly extracted equity from the homes by keeping rent payments and getting new loans on the homes. The homes were eventually foreclosed, costing lenders more than $1 million, federal authorities said.