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#192334 - 05/20/04 02:39 PM lender falsifying loan documentation
Anonymous
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I have a lender that is falsifying loan documentation, specifically the HUD settlement statement and putting through loan proceeds checks that are not immediately funded. Can someone help me? Is falsifying loan documenation a criminal offense?

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#192335 - 05/20/04 02:53 PM Re: lender falsifying loan documentation
Jokerman Offline
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do you mean they are giving the customer (or closing agent) the debit copy of an official check before the credit copy is ran? what information is being falsified?

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#192336 - 05/20/04 02:58 PM Re: lender falsifying loan documentation
Anonymous
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yes, that is what is happening. They are then showing the amount on the HUD as an equity down payment. Two weeks later the bank gives the borrower another loan that funds the check.

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#192337 - 05/20/04 03:06 PM Re: lender falsifying loan documentation
Jokerman Offline
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what is the purpose? better LTV ratio?

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#192338 - 05/20/04 03:09 PM Re: lender falsifying loan documentation
RR Joker Offline
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What is your position at the bank? I would suggest going to the proper official at your bank with your discovery. This is at a minimum "misuse of position/self dealing" and appears to also be loan fraud. Also, what is happening to the offsetting entry to the loan check...you said 2 weeks later they make "another" loan to fund the check? Does the first proceeds ever get booked? Sounds like a major mess.
Last edited by joker; 05/20/04 03:11 PM.
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#192339 - 05/20/04 03:17 PM Re: lender falsifying loan documentation
Anonymous
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I am the auditor,,,I have talked to the lender and he has come down with a major case of memory loss,,,,I cant see the benefit/reason,,,other than 100% financing.

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#192340 - 05/20/04 03:20 PM Re: lender falsifying loan documentation
RR Joker Offline
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Do you have an audit committee? I would take this to the President or CEO if I needed to..with backup documentation in hand...or maybe your COO. In my situation, my COO would be my first recourse.
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#192341 - 05/20/04 03:38 PM Re: lender falsifying loan documentation
Jokerman Offline
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So an example would be, I'm purchasing a $150,000 house, the HUD shows a $30,000 down payment and a loan for $120,000. But the down payment is a cashier's check from the same lender, and represents proceeds for a loan that is not on the g/l and loan system. When it clears proof, it is a reconciling debit item in the cashier's check account. Later, the officer makes a second loan (home equity loan?) for $30,000 and clears that item by running a credit.

Is this an accurate understanding?

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#192342 - 05/20/04 04:52 PM Re: lender falsifying loan documentation
Skittles Offline
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From a seminar I attended a couple of years ago - falsifying any document is a felony. This sounds like that to me.
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#192343 - 05/20/04 04:54 PM Re: lender falsifying loan documentation
Jokerman Offline
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Quote:

From a seminar I attended a couple of years ago - falsifying any document is a felony.




I guess I better give an accurate weight to the DMV.

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#192344 - 05/20/04 05:33 PM Re: lender falsifying loan documentation
Anonymous
Unregistered

That is correct,,,,is this criminal behavior/a felony/ or just unethical behavior,,,I plan on bringing it to the attention of the audit committee and management,,,I just wasnt sure if a sar had to be filed,,,thanks all for your help.

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#192345 - 05/20/04 06:02 PM Re: lender falsifying loan documentation
Jokerman Offline
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Sorry, don't know whether it's criminal or not. I assume it does violate your board-approved lending policy and it is definitely unethical. I suggest reporting to executive management and the audit committee, and involving counsel.

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#192346 - 05/20/04 06:18 PM Re: lender falsifying loan documentation
1 Peter 5:7 Offline
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TX
I'd suggest you audit this lender's portfolio. This kind of monkey-business is rarely an isolated event - - and it could be you just discovered the tip of the ol' iceberg.
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#192347 - 05/20/04 06:30 PM Re: lender falsifying loan documentation
rlcarey Offline
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How was he making 100% LTV seconds? Sounds like you have some supervisory LTVs exceeded and have some board reporting in your future.
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#192348 - 05/21/04 12:33 PM Re: lender falsifying loan documentation
Retread Offline
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Retread
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This is not an identical situation, but there are similarities since there are "hidden" mortgages.

Posted on Thu, May. 20, 2004


Overland Park businessman indicted for bank fraud

By RICHARD ESPINOZA

The Kansas City Star

An Overland Park business owner indicted by a grand jury is accused of scheming to sign up homeowners for more debt than they could repay.
Harris Poulikidis, 56, was charged Wednesday in U.S. District Court in Kansas City in a nine-count indictment. He is accused of leading six homeowners into obtaining loans they should not have received and three counts of causing homeowners to cross state lines to receive those loans.
Four of the loans led to home foreclosures, prosecutors said.
Poulikidis owned and operated several home improvement businesses, including U.S. Home Services, Roofing and Siding Plus and A+ Siding. He also operated several mortgage companies, including Olympic Mortgage and FP Holdings, prosecutors said.
Poulikidis sometimes arranged payments for work at clients' homes as well as mortgage refinancing and debt consolidation, prosecutors said.
He is accused of defrauding federally-insured financial institutions for a year starting in March 2000 by failing to tell lenders that clients he was working with were obtaining first, second and third mortgages on the same property. He also is accused of submitting loan applications that he knew misrepresented borrowers' incomes.
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#192349 - 05/21/04 01:28 PM Re: lender falsifying loan documentation
rlcarey Offline
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Retread,

That's a very good point and all these loans may fall under some sort of deceptive practice and/or predatory lending statute. I would also be anxious to engage legal counsel in these discussion.
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#192350 - 05/21/04 03:52 PM Re: lender falsifying loan documentation
Retread Offline
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Retread
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Just out of curiosity, I would like to pose this question. I closed on a RE mortgage about 18 months ago. One of the questions on my loan application was "What is the source of downpayment?" If I had put "unbooked loan from my bank", do you think I would have been approved for my mortgage? I doubt it.

If the borrower lied to the lender about the source of the downpayment, then you do have attempted fraud.
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#192351 - 05/21/04 05:51 PM Re: lender falsifying loan documentation
DawgFan Offline
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Anon, once you determine whether or not this is fraud, a SAR filing is definitely appropriate. The instructions for filing a SAR state that you should file for "insider abuse involving any amount". Make certain the employee is not aware or informed of its filing.
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#192352 - 05/21/04 08:50 PM Re: lender falsifying loan documentation
David Dickinson Offline
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Central City, NE
A SAR should be filed anytime you have "misuse of position".
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#192353 - 05/21/04 10:39 PM Re: lender falsifying loan documentation
RFitzpatrick Offline
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I'd also be concerned if the false down payment was used to make the loan acceptable on the secondary market. If they are being sold, you could lose that ability and end up buying them back.
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#192354 - 06/08/04 05:07 PM Re: lender falsifying loan documentation
Quadspapa Offline
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Quadrupletville, Texas
Read 18 USC 1001 and 1005. Statements or entries generally/Bank entries, reports and transactions. Found on page 8293 of FDIC Book 3. Your lending officer is in serious trouble which needs correcting and you should file SAR and notify your Audit Committee or B of D.
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#192355 - 06/09/04 01:32 PM Re: lender falsifying loan documentation
Anonymous
Unregistered

Thank you soooooo much,,that is exactly the information I was hoping someone could supply for me. Thanks again.

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#192356 - 06/18/04 01:54 PM Re: lender falsifying loan documentation
Retread Offline
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Retread
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Southeast
Here's more information on falsifying down payments on mortgage loans.

Bankers Plead Guilty
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#192357 - 11/10/04 05:20 AM Re: lender falsifying loan documentation
Anonymous
Unregistered

what the hell

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#192358 - 11/10/04 05:21 AM Re: lender falsifying loan documentation
Anonymous
Unregistered

morans....

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