Hector Hernandez, a Miami-area real estate developer and owner of Great Country Mortgage Brokers, his business partner and a senior bank loan underwriter each pleaded guilty to a FHA Mortgage Scams Scheme. The mortgages published by Great Country Mortgage Bankers?caused loss of $64 million into the Federal Housing Administration (FHA).
Assistant Legal professional General Leslie Third. Caldwell of the Justice Departments Criminal Division, U.S. Attorney Wifredo A. Ferrer to your Southern District of Florida and Distinctive Agent in Charge Nadine Gurley of the U.S. Dept of Housing and concrete Development Office connected with Inspector General (HUD-OIG) designed the announcement.
Hector Hernandez, Aleida Fontao plus Olga Hernandez each pleaded guilty for you to conspiracy to invest wire fraud having an effect on a financial institution.? Hector in addition to Olga Hernandez both pleaded guilty past due yesterday, while Fontao pleaded in the wrong on July Several, 2015.? As part of his plea, Hector Hernandez likewise agreed to forfeit $8 thousand thousand, which amounts to their profits from the Federal housing administration mortgage fraud structure.
Great Country Mortgage Bankers, specialized in mortgage loans who were insured by the Home loans, a division regarding HUD, as part of a program built to make homeownership extra accessible to first-time buyers in addition to borrowers with lower income and imperfect credit profile.? To qualify for most of these federally-insured mortgages, potential applicants must meet selected income and other personal requirements.? Under the program, HUD relies on lenders for example Great Country to examine and approve the few borrowers who fulfill the employment, income and also other financial requirements necessary to qualify for an Federal housing administration mortgage.
According to admission made in connection with this guilty pleas, most of Great Countrys potential borrowers failed to qualify for the FHA-insured loans. Hernandez with his fantastic business partner, Fontao aimed their employees, including underwriter Olga Hernandez, to falsify documents in the potential borrowers loan applications to make them appear competent.
In particular, Hector Hernandez and Fontao accepted to pressuring their staff members to approve and shut loans using profits statements and falsified advantageous work histories together with credit histories.? For an underwriter responsible for going over and approving loan applications, Olga Hernandez admitted that she made available her coworkers by using false information and that this lady endorsed the uses knowing that the applicants did not actually qualify for the loans.
After Great Place closed the deceptive loans, the company sold the loans to financial institutions for profit.? Involving their guilty pleas, the particular defendants admitted of which aside from the FHA bank loan fraud scheme, they offered kickbacks to the consumers in the form of cash back following closing, which monthly payments were not disclosed during the loan application process in an effort to hide the payments both equally from HUD and with the financial institutions that purchased the loans by Great Country.
The vast majority of the borrowers included in this FHA property finance loan fraud scheme failed to meet their regular monthly mortgage obligations plus defaulted on their lending options.? When these loans went into foreclosure, HUD, which had secured the loans, was required to pay the outstanding mortgage loan balances to the loan company investors, resulting in major losses to the Mortgage loans of at least $64 million.
This case was investigated by just HUD-OIGs Miami Field Company.? This is being accused of by Senior Litigation Counsel David A good. Bybee and Trial Legal professionals Michael T. ONeill together with William E. Johnston in the Criminal Divisions Fraud Portion.