Denise L. Evan’s Real Estate Advice has posted an article about the former Colonial Bank executive Catherine Kissick pleading guilty to mortgage fraud charges on March 2nd. Reports claim to show that she helped Taylor Bean Whittaker sell at least $700 million in phony mortgages to Colonial Bank. Experts estimate that another $500 million to $1.1 billion in phony mortgages was sold to Colonial even though Taylor Bean Whittaker no longer owned the mortgages. The mortgages had been sold to other investors, sometimes even more than once.
Sort of explains why TBW was ready to buy a 75% share in Colonial in order to bail out the bank so it could get TARP money. TBW needed more control over covering up the fraud, it needed the gravy train to continue, and it SURE didn’t need regulators closing Colonial and rooting around in the paperwork details. That plan didn’t work out so well.
A scary fact is that TBW has actually been praised for their superior underwriting, audit trails, and quality control compared to other mortgage companies. But, on the same hand, consider how unreliable and disorganized other mortgage companies are.
Cases like this might seem like you as the innocent consumer can’t do anything to protect yourself and your home. But there are some precautions you can take. For example, if you’re involved in a loan modification or a short sale you need to make sure you’re dealing with the right company who actually owns your mortgage loan. You do have to pay off your mortgage loan, but only to the lender who supplied you with the money. Be sure to hang on to original documentation that states who the original lender is, so no difficulties or questions will arise in the future.
If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447. You may also obtain a copy of our free book on stopping wrongful foreclosures and the problems of hidden fees by emailing us. We have also started handling bankruptcy cases.
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