Jerry Brown discovers mortgage fraud

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

News item: California prosecutors have finally brought what they consider to be a major case alleging mortgage fraud.

From the L.A. Times tonight: ‘California authorities said today they cracked a mortgage fraud ring that allegedly victimized thousands of Californians, some of them elderly and some who lost their homes.’

More: ‘ ‘As the mortgage crisis worsens, a growing number of fly-by-night companies are employing utterly brazen tactics to push homeowners into illegal and unconscionable loans,’ Atty. Gen. Jerry Brown [pictured] said.’

The companies accused in the crackdown are not exactly household names and were operated by a single family in Tarzana. The companies named include Lifetime Financial, Nations Mortgage, Greenleaf Lending, Virtual Escrow, Olympic Escrow and Direct Credit Solutions.

John Gittelsohn, writing on the Mortgage Insider blog at the OC Register, reports that this appears to be Brown’s first attempt at prosecuting mortgage fraud since he took office. ‘As the birthplace of America’s subprime lending boom and bust, you’d expect California’s Attorney General to be a national leader in policing the mortgage industry,’ Gittelsohn writes, pointing out that AGs in New York and Ohio have been at the forefront of investigating mortgage abuses. He asks, ‘So what’s taken Brown so long?’

Good question, John.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Photo Credit: Getty Images