Mortgage fraud is being brought to justice

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One of the largest mortgage frauds in state history will be brought to trial by a U.S. District Court in St. Paul in March.

Michael Prieskorn and Richard Laho pleaded not guilty to charges of mortgage fraud that occurred between 2006 and 2007 in a federal court in Minneapolis on Wednesday, according to the Star Tribune

Prieskorn, 35, and Laho, 54, allegedly payed potential homeowners $5,000 to use their names and credit histories to buy homes and quickly resell them in Minnesota and Florida. The end result of those transactions led to ruined credit histories and a long list of foreclosures, according to the Star Tribune.

Prosecutors are focusing on 70 transactions that the two were apart of, but investigators are saying that the alleged scam included Prieskorn and Laho buying several hundred properties over several years, according to the Pioneer Press

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I've been a Minneapolis / St Paul area mortgage lender for almost 20-years. I couldn't been happier to see these sort of people pay the price for their crimes.

In an attempt to eliminate some of this in the future, Washington has created new mortgage broker rules that mandate: licensing for loan officers, fingerprints, background checks, credit report reviewes, educational requirements, continuing education, and more.

Sounds great, except there is also left a giant loop hole in the new mortgage laws. IF YOU WORK AT A BANK, you don't need ANY of these requirements?

WHAT? A Loan officers is a Loan Officer no matter where they work. They are all handling the largest financial transaction of the average persons life. Bank loan officers need nothing, but brokers need everything?

Learn more about how YOU are NOT being protected at :


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This page contains a single entry by miche299 published on February 14, 2010 7:41 PM.

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