GREFPAC - New York Time GREFPAC NEWS
Official Publication of the Georgia Real Estate Fraud Prevention and Awareness Coalition, Inc.
A service to our members, industries and communities.
2011 Issue 2
INSIDE GREFPAC
 
GREFPAC President Speaks at MBA's National Fraud Conference

Vicky Thompson, GREFPAC's current president, was a speaker at the Mortgage Bankers Association's National Fraud Issues Conference held March 28-30 in Ft. Lauderdale, Fla.  She spoke on behalf of GREFPAC at the opening general session, entitled "National Fraud Prevention Efforts Outlook."  Other speakers during the session included the director of the Financial Crimes Enforcement Network, the inspector general of the Federal Housing Finance Agency and the principal deputy chief, Fraud Section, Criminal Division, U.S. Department of Justice. Read More

 

Fraud and Short Sales on Menu for Joint Luncheon Meeting with NAPMW-Atlanta

Attorney Howell Haunson will be the speaker at the April 19 meeting being hosted by GREFPAC and National Association of Professional Mortgage Women (NAPMW)-Atlanta at the Dunwoody Country Club.  GREFPAC members may attend at NAPMW member prices. RSVP to Kelly Byers [email protected] by 1:00 p.m. Friday, April 15.

 

Celebrating 10 Years of Service
10-Years
March 2011 marked the tenth anniversary of the first organizational meeting of GREFPAC.  After a decade, the coalition comprised of concerned citizens and professionals from all aspects of the real estate industry, which has worked closely with law enforcement and regulatory agencies, remains as strong as ever.  Because of its efforts-- including seven educational conferences and dozens of educational meetings-- GREFPAC is nationally recognized for mobilizing, educating and energizing many of the parties involved on Georgia's attack on fraud.  However, the statistics show that there is still much work to be done.  As an all-volunteer, 501(c)(3) non-profit organization, GREFPAC is only as strong as its membership.  GREFPAC thanks its members for their continued support and ask non-members to consider joining the fight.

Founders Scholarship Established

GREFPAC's board of directors recently voted to establish a scholarship, the intent of which is to encourage local universities to undertake mortgage fraud prevention research.  For the 2011-2012 academic year, GREFPAC will partner with Emory's Office of University-Community Partnerships to award a $2,500 scholarship to an Emory student who will conduct research about mortgage fraud and other related topics of concern to the local community.

Shepperd-Brewer

Alicia Sheppard and Brent Brewer announced the GREFPAC Founders Scholarship at the March 9 Educational Conference.

 

 

Read More 
 

GREFPAC Mourns Loss of Cody Ann Moran

Longtime GREFPAC friend Cody Ann Moran passed away on March 18.  A native Atlantan who was a Realtor and real estate broker for over 20 years, she served GREFPAC in prior years as secretary and as a director.  Cody also developed and taught courses on mortgage fraud for her fellow real estate sales professionals and educated the clients she served, homeowner associations and civic groups.  She will be deeply missed. 

Tradition of Top-Notch Education Continues at 7th Conference

 

Dollar-ThompsonConference Speaker Rachel M. Dollar, Esq., CMB, Smith Dollar PC, and Editor of Mortgage Fraud Blog (left), with 2011 GREFPAC President, Vicky Thompson.




GREFPAC's 7th Educational Conference was held on March 9 at the Cobb Galleria Centre.  It featured outstanding speakers, including several regulatory agency representatives, who alerted attendees on evolving real estate fraud trends and best practices to detect and prevent fraud.  A recap of the day's events is posted here

Plans are already underway for next year's conference.

June Educational Meeting Topic: Short Sales

Ed Gerding, Sr., Fraud Consultant at CoreLogic, will discuss one of the hottest topics today: short sales.  CoreLogic provides information, analytics and business services to help reduce risk and improve performance.

An election of the 2011-12 GREFPAC officers and board of directors will also be held at this meeting.

Click here to learn more about the meeting.

Click here to register for this complimentary meeting.

GEORGIA NEWS
DBF Enters into Consent Order
Ga. Dep't of Banking and Fin. | Apr. 8, 2011

 

The Georgia Department of Banking and Finance (DBF) entered into a consent order with a mortgage loan originator licensee to resolve allegations pertaining to violations of the Georgia Residential Mortgage Act and agency rules, including allegations of making false statements or misrepresenting facts to lenders.  The order includes a provision that requires completion of education from a DBF-approved provider in the areas of mortgage fraud detection and prevention prior to affiliating with a Georgia mortgage broker or lender.  Read More

Ten Individuals Indicted for Mortgage Fraud in Atlanta
Ga. Attorney Gen. | Mar. 24, 2011

A Fulton County Grand Jury returned multiple Residential Mortgage Fraud indictments against ten individuals for their roles in perpetuating mortgage fraud in south Atlanta.  The indictments charge that between November 2006 and November 2007 the defendants made misrepresentations or omissions during the process of obtaining mortgages for properties in south Atlanta, and/or received proceeds from the fraudulent closings. All the homes have since gone into foreclosure status.
Read More

 

Former Bank President and Senior Loan Officer Indicted in Multi-Million Dollar Fraud Conspiracy
U.S. Attorney's Office for the N. Dist. of Ga. | Mar. 21, 2011

According to United States Attorney Yates, the charges and other information presented in court:  Mark A. Conner served in a variety of top positions at FirstCity Bank between 2004 and 2009, including as Vice Chairman of the Board of Directors, as a member of the bank's loan committee, as President, and later as acting Chairman and Chief Executive Officer.  Clayton A. Coe served as a Vice President and as FirstCity Bank's Senior Commercial Loan Officer.  While serving in these positions, Conner, Coe, and their co-conspirators allegedly conspired to defraud FirstCity Bank's loan committee and Board of Directors into approving multiple multi-million dollar commercial loans to borrowers who, unbeknownst to FirstCity Bank, were actually purchasing property owned by Conner or Coe personally.  Read More

 

Supreme Court Issues Another Opinion on Effect of Forged Deeds
Ga. Supreme Court | Mar. 18, 2011
 
The lender's interest in the property is dependent upon the forged deeds made to the borrower's grantor.  As the trial court noted, such a deed cannot convey title.  A "forged deed is a nullity and vests no title in a grantee ... As such, even a bona fide purchaser for value without notice of a forgery cannot acquire good title from a grantee in a forged deed, or those holding under such a grantee, because the grantee has no title to convey." Read More

 

Three Men Indicted for Elaborate Mortgage Fraud Scheme in Athens
Ga. Attorney Gen. | Mar. 16, 2011

The indictment alleges: that between 2003 and 2006, the three men orchestrated a scheme to artificially raise home prices in a new East Athens subdivision, and then to pay money to so-called investment buyers who purchased the homes.  By 2008, 88 of the 125 homes in the subdivision had been foreclosed and lenders lost in excess of $10 million.  Read More

Sovereign Citizens Indicted in Housing Scheme
WSB-TV | Mar. 15, 2011

Channel 2 Action News report:  A DeKalb County grand jury has indicted 12 people for racketeering and other crimes, after a Channel 2 Action News investigation exposed efforts to steal houses across metro Atlanta.  The group is accused of targeting foreclosed and empty properties, then signing deeds from themselves to themselves. Read More

 

Two Bills Proposed to Amend Ga. Residential Mortgage Fraud Act
Ga. Gen. Assembly | Mar. 2011
 
House Bill 237: "A BILL to be entitled an Act to amend Article 5 of Chapter 8 of Title 16 of the Official Code of Georgia Annotated, relating to residential mortgage fraud, so as [to] revise the definition of "mortgage lending process"; to change provisions relating to the offense of mortgage fraud; to provide for investigative and subpoena powers of district attorneys and the Attorney General relative to residential mortgage fraud; to provide for related matters; to repeal conflicting laws; and for other purposes."  Read More

For the Attorney General's press advisories in support of HB 237:
February 28, 2011, click here.
March 2, 2011, click here.

Senate Bill 123:  "A BILL to be entitled an Act . . . to amend Title 16 of the Official Code of Georgia Annotated, relating to crimes, so as to change provisions relating to the crime of residential mortgage fraud; to provide for the crime of residential foreclosure fraud and prescribe elements of the crime and penalties; to provide for other matters related to the foregoing; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes."  Read More

 

Vacant Property Registry Subject of Proposed Law
Ga. Gen. Assembly | Mar. 2011

House Bill 110:  "A BILL to be entitled an Act to amend Article 1 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating generally to mortgages, conveyances to secure debt, and liens, so as to provide for a vacant real property registry; to provide for definitions; to provide for required elements of a form for such registration; to provide for exemptions from registration; to provide for maximum fees and penalties for registration and failure to register; to provide for appellate rights; to provide for related matters; to repeal conflicting laws; and for other purposes."  Read More 

Bill Addresses Foreclosure Related Rescue Services
Ga. Gen. Assembly | Mar. 2011

House Bill 204:  "A BILL to be entitled an Act to create the 'Protecting Georgia Homeowners Act of 2011'; to amend Article 7 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating to foreclosure, so as to provide for legislative findings and intent; to provide for homeowner relief from unfair practices related to foreclosure and foreclosure rescue schemes; to provide for monetary penalties; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes."  Read More 

Father and Son Indicted for Mortgage Fraud in DeKalb County
Ga. Attorney Gen. | Feb. 22, 2011

A DeKalb County Grand Jury returned a four count indictment against a father and son for making false statements during the mortgage lending process.  The indictment alleges that the son sold a residential property to his father on December 19, 2005.  The buyer, who received 100% financing for the $630,000 sale, allegedly made several misstatements on his loan application, including that the property would be his primary residence, that the cash value of his checking account was $686,524 and that his monthly income was higher than it actually was.  Read More

Gwinnett County Woman Pleads Guilty to Residential Mortgage Fraud
Ga. Attorney Gen. | Feb. 17, 2011

Kimberly Martin, a former Alpharetta homeowner, pled guilty to one count of residential mortgage fraud and one count of theft by deception.  In February 2006, Martin refinanced a home she owned in Alpharetta, receiving $166,696.23 in proceeds at closing from a mortgage lender.  However, Martin failed to disclose that a first mortgage on the property already existed with another mortgage lender in the amount of approximately $271,000.  The attorney's office handling the closing received a fax, purportedly from a mortgage broker containing documents indicating that the first loan had been paid off.  In fact, the letter and security deed had been forged, and the prior loan was still fully in place.  At closing, Martin signed a document falsely stating that no pre-existing mortgage existed. Believing there was no other pre-existing mortgage, the new mortgage lender funded its loan.  Read More

Emanuel County Attorney Sentenced to 5 1/2 Years in Prison for Mortgage Fraud Scheme
U.S. Attorney's Office for the S. Dist. of Ga. | Jan. 25, 2011

Evidence presented during John R. Thompson's three day trial in July 2010 revealed that Thompson, in his role as a closing attorney, assisted his co-defendants, Brian and Natasha Steptoe, in knowingly submitting a falsified HUD-1 Form and other documentation to Bank of America with regard to a $400,000 home loan. Read More 

Former Bank V-P Pleads Guilty to Bank Fraud Conspiracy
U.S. Attorney's Office for the N. Dist. of Ga. | Jan. 20, 2011

According to United States Attorney Yates and the information presented in court:  In June 2005, Joseph C. Penick, Jr. obtained a loan for approximately $500,000 from Community Bank & Trust to finance his purchase of 54 acres of land in Hart County.  Robert Randal Jones approved this loan on behalf of CB&T.  A month later, Jones arranged for Penick to sell the 54 acres to Douglas C. Emig for more than $1.6 million (resulting in a profit to Penick of more than 300%).  Jones also approved a loan related to this purchase on behalf of CB&T.  Out of his share of the profits from the sale of the 54 acres, Penick paid a kickback to Jones of more than $400,000 and paid a kickback to Emig of $270,000.
Read More

Savannah Real Estate Developer Indicted on Million Dollar Bank Fraud Scheme
U.S. Attorney's Office for the S. Dist. of Ga. | Jan. 5, 2011

The indictment alleges that:  In 2007, a real estate developer acting on behalf of two businesses, entered into loan agreements with First National Bank and other banks for the purchase and development of areas within downtown Savannah; during a two year period, he submitted dozens of bogus subcontractor invoices to First National Bank for work that had not been performed.  Read More

 

NATIONAL NEWS AFFECTING GEORGIA

FinCEN's 2010 Mortgage Fraud Report:  SAR Filings Up; Potential Abuse of Bankruptcy Identified
Fin. Crimes Enforcement Network | Mar. 28, 2011
 
The Financial Crimes Enforcement Network (FinCEN) in its new report released full year data showing the number of suspicious activity reports involving mortgage loan fraud (MLF SARs) increased 4 percent in 2010.  According to the report, Georgia had the fifth highest number of MLF SARs per capita in 2010 among all states, Atlanta-Sandy Springs-Marietta had the seventh highest number of MLF SARs per capita in 2010 among all metropolitan statistical areas, and Fulton and Gwinnett Counties had the second and eighth highest number of MLF SARs per capita among all U.S. counties, respectively.  Beginning with this mortgage fraud report, FinCEN has added new features that provide additional data and explanation of MLF SARs. Read More

FTC Charges Mortgage Relief Operation with Deceiving Distressed Homeowners
Fed. Trade Comm'n | Mar. 7, 2011

According to the Federal Trade Commission's complaint:  The defendants target financially distressed consumers using direct mail, the Internet, and telemarketing, and falsely promise they will get loan modifications to make consumers' mortgages much more affordable, or fully refund their money if they fail.  They make these promises even to homeowners whose lenders have denied them modifications or who have been sent foreclosure notices.  The defendants charge up to $2,600 for their supposed services and typically ask for half of the fee up-front, claiming a success rate of up to 100 percent.  Read More

 

Report Illustrates Danger of Localized Mortgage Fraud Risks Spreading
Interthinx | Feb.17, 2011

Interthinx has released its quarterly Mortgage Fraud Risk Report, covering data collected in the fourth quarter of 2010.  The report, which tracks overall and type-specific mortgage fraud risk, provides an in-depth analysis of fraud risk from specific ZIP codes at state and national levels.  It shows that Georgia had the eighth highest 2010 Mortgage Fraud Risk Index and that Atlanta 30310 was the eleventh most risky zip code in the nation. Read More

FTC's Mortgage Assistance Relief Services Advance Fee Ban Takes Effect
Fed. Trade Comm'n | Feb. 10, 2011

The advance fee ban under the Federal Trade Commission's Mortgage Assistance Relief Services Rule is designed to protect financially distressed homeowners from mortgage relief scams that have sprung up during the mortgage crisis.
Ga. Residential Mortgage Fraud Act Cited in Michigan Law Review Article
Mich. Law Review | Feb. 2011

Professor Rachel E. Barkow's article, "Federalism and Criminal Law:  What the Feds Can Learn from the States," looks to the states for guidance on when criminal enforcement responsibility should rest with local authorities and when it should reside with a more centralized actor and cites the Georgia Residential Mortgage Fraud Act as an example where the state's attorney general and others have jurisdiction under a criminal fraud statute.  Read More

FHA Extends 'Anti-Flipping' Waiver to Help Stabilize Housing Market
U.S. Dep't of Hous. and Urban Dev. | Jan. 28, 2011

In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Federal Housing Administration (FHA) Commissioner David H. Stevens extended FHA's temporary waiver of the agency's 'anti-flipping rule.'  The extension is intended to accelerate the resale of foreclosed upon homes in neighborhoods struggling to overcome possible property abandonment and blight and is effective through December 31, 2011, unless otherwise extended or withdrawn by FHA.  Read More

FinCEN:  Third Quarter Reports of Mortgage Fraud Up Slightly; Mortgage Fraud as Percentage of All SARs Remains Steady
Fin. Crimes Enforcement Network | Jan. 6, 2011

The Financial Crimes Enforcement Network released its third quarter 2010 mortgage fraud report, Mortgage Loan Fraud SAR Filings.  The report shows that suspicious activity reports (SARs) characterized by filers as indicating possible mortgage loan fraud (MLF) increased 2% in the third quarter of 2010.  In all, 9% of all SARs filed in the 2010 third quarter indicated MLF as an activity characterization, the same percentage reported in the third quarter of 2009.  Read More

NOTICE AND DISCLAIMER:
Copyright 2011 Georgia Real Estate Fraud Prevention and Awareness Coalition, Inc. All rights reserved. Unauthorized use of the Georgia Real Estate Fraud Prevention and Awareness Coalition, Inc. or GREFPAC names or logos is prohibited.  You may reproduce a reasonable number of copies of this newsletter for your own personal use or for non-commercial distribution, but all all copies must be unmodified and must include the above copyright notice.  Reproduction or distribution of this newsletter for commercial purposes is prohibited. GREFPAC cannot guarantee that material accessible from this newsletter is free of viruses or other malicious code, and GREFPAC does not accept any responsibility for any loss caused by any such code.  GREFPAC is not responsible for any third party content, products or services that may be accessed through this newsletter, and the availability of links in this newsletter to such third party content, products or services should not be construed as referrals to, or endorsements of, the linked entities or the content, products or services that they make available. GREFPAC will cease providing links from future issues of this newsletter upon request from the linked party.  The information in this newsletter is presented as general information and is not intended to be, and should not be relied upon as, legal advice or legal opinions on specific facts.  You should not rely on information in this newsletter or its applicability to any specific questions or circumstances without first seeking your own professional's advice.  GREFPAC is not a law firm and does not offer professional legal services.  The information in this publication is not intended to create, and the transmission and receipt of it does not constitute, a confidential or lawyer-client relationship.  The act of contacting GREFPAC will not create a confidential or lawyer-client relationship, and your communication will not be treated as confidential. GREFPAC makes no warranties, representations, or claims of any kind concerning the information available from, or the distribution of, this newsletter.  GREFPAC and contributing authors expressly disclaim all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance upon the use or contents of this newsletter.  The information contained in this newsletter may concern allegations made in civil lawsuits and in criminal indictments. Such allegations may be found by the court to be untrue.  All persons are presumed innocent of criminal allegations until convicted of a crime.  Court opinions may be subject to the parties' motion for reconsideration, the court's reconsideration, and editorial changes made by the reporter of decisions.  We are eager to make corrections quickly and candidly.  An aggrieved party need not have a letter to the editor published for us to correct a mistake. We will publish corrections on our own and in our voice as soon as we are told about them and can confirm them.
UPCOMING EVENTS
 AT A GLANCE

Apr. 19, 2011 NAPMW/ GREFPAC
Joint Luncheon Meeting. 11:30 a.m. - 1:00 p.m.
Dunwoody Country Club, 1600 Dunwoody Club Dr., Atlanta, GA 30350

June 1, 2011
GREFPAC 2011-12 Elections & Quarterly
Educational Meeting
9:30 a.m. - Noon  
Atlanta Jr. League 3154 N'side Pkwy. Atlanta, GA 30327

Sept. 7, 2011
Quarterly Educational Meeting
9:30am - Noon
Atlanta Jr. League
3154 N'side Pkwy.
Atlanta, GA 30327 
 
THANK YOU
2011 SPONSORS


Diamond

Fannie Mae 

Silver

BurrForman

GREFPAC - New York Time

GREFPAC - New York Time

LotsteinLegal

Southeastern Evaluation

SSI

Valuation Management Group

Bronze

Accurate Quality Control, Inc.

Brand Mortgage Group

ComplyShare, LLC

Georgia Dept. of Community Affairs

Georgia Real Estate Closing Attorneys Ass'n (GRECAA)

Morris | Hardwick | Schneider, LLC

Old Republic National Title Insurance Co.

Real Property Law Section of State Bar of Georgia

Stewart Title Guaranty Co.

The StoneHill Group, Inc. 
Georgia Real Estate Fraud Prevention and Awareness Coalition, Inc.
1188 Dorby Park Drive
Atlanta, GA
30319
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