The 12/28/2006 Inman News Story (Click Here) "Ex-mortgage loan officer to do heavy time for fraud" says: "A federal judge has sentenced a former mortgage loan officer convicted of organizing a Washington, D.C., house-flipping scheme involving mortgage fraud to more than 24 years in prison."
Five others charged in the scheme have also entered guilty pleas.
I've listed Brad Geary's, “Universal Truths of Mortgage Fraud” in the Appraisal Scoop many times. According to Mr. Geary "Virtually all mortgage fraud combines at least two of the "Universal Truths" of mortgage fraud. This case is no different!
As usual, an appraiser was needed to seal the deal.
BUT . . .this time they didn't even use a "licensed" appraiser!
"Robbie Colwell, who was paid to write appraisals that inflated the values of the properties, pleaded guilty to conspiracy to commit bank fraud. Prosecutors said Colwell was not a licensed appraiser but used other appraisers' names and licenses to write "completely fabricated reports on the value of the houses."
"Nearly all of the appraisals claimed the homes had undergone complete rehabilitation and remodeling, when in fact none had renovated kitchens or bathrooms, many had crumbling walls and ceilings, and one was merely a shell, with no interior walls or floors at all."