CALIFORNIA ATTORNEY GENERAL SHUTS DOWN FOUR MORTGAGE COMPANIES FOR PREDATORY LENDING
Attorney General Jerry Brown has shut down mortgage companies in Los Angeles and San Bernardino Counties for alleged predatory lending scams. Virtual Escrow, Olympic Escrow, National Mortgage, Lifetime Financial, Greenleaf Lending and Direct Credit Solutions are the companies named for participating in scams that could top more than $20 million.
In a time where the housing market is down, mortgage companies are attempting to gain business by using unconventional and illegal measures. Specifically, this investigation has uncovered information that many of the named companies were engaging in illegal tactics to initiate loans including psychological pressure, lies and even forged documents.
With California leading the nation in subprime lending, it is likely that additional companies particularly in Orange County might be named or investigated for mortgage fraud. As of 20007, authorities have initiated criminal investigations of many lenders including, New Century Financial Corp. an Irvine subprime lender who is now bankrupt.
