Former CEO of Mortgage Company Taylor Bean & Whitaker to be Sentenced for Role in $3B Fraud
ALEXANDRIA, Va. — Prosecutors are seeking a six-year prison sentence for the CEO of what had been one of the nation’s largest private mortgage lenders.Fifty-five-year-old Paul R. Allen of Oakton, Va., will be sentenced Tuesday in federal court in Alexandria for his role in a $3 billion fraud scheme that officials say is the one of the largest in U.S. history.
Mortgage Poll: Are Strategic Defaults Ethical?
I know a guy — let’s call him Fred — who has a plan for walking away from his home and the $400,000 mortgage on it. Fred lives in Phoenix, one of those particularly hard hit real estate markets in a state that prohibits banks from coming after borrowers for additional money once a home has gone into foreclosure. The home he bought for more than $400,000 is now worth about $225,000, by his estimates. He’s saved up quite a bit of money and can keep making the payments. But he’s nearing retirement, and figures that, the way he’s going, he’ll never have home equity.
3 Consequences of Walking Away From Your Mortgage
- Before you decide to walk away from your mortgage, consider the real, long-term costs.With over eleven million Americans owing more than their houses are worth, its no surprise that many homeowners are considering walking away from their mortgages. Its especially tempting if you are out of a job or experiencing other financial difficulties and struggling to make bloated monthly payments.
With so many people in trouble, even the social stigma of ditching your financial commitments isnt as great as it once was.
SEC Subpoenas JPMorgan, Credit Suisse Over Mortgage Practices
JPMorgan Chase has been subpoenaed by the U.S. Securities and Exchange Commission over mortgages issued before the real estate collapse that have since soured, Bloomberg News reported. The move comes amid an SEC probe into the mortgage practices of several U.S. banks, including Credit Suisse, which was subpoenaed last week. The JPMorgan subpoena is seeking information related to Bear Stearns mortgage practices, after bond insurers alleged that the bank, which JPMorgan acquired in 2008, had demanded refunds from originators but then failed to share those refunds with sellers. Meanwhile, the Credit Suisse investigation was disclosed yesterday by the bond insurance unit of MBIA, in a filing in New York State Supreme Court.