World Wide Financial Services, Inc. dba Loan Giant

Allison Tussey —  September 24, 2004 — 1 Comment

A Cease and Desist Order was issued by the Michigan Office of Financial and Insurance Services (OFIS) against World Wide Financial Services, Inc. (WWFS), dba Loan Giant. OFIS investigators allege that Loan Giant staff and executives, among other things, engaged in a variety of illegal activities, including improperly qualifying mortgage loans for sale to investors by falsifying a variety of documents including misrepresentations as to employment, income and occupancy information; Failed to maintain appropriate books, accounts, records and documents necessary to permit OFIS investigators to determine if its activities complied with Michigan law. The cease and desist order alleges that, in the course of their inquiry, OFIS investigators learned that CEO Jack Wolfe personally authorized transactions dubbed “Portfolio” or “Phantom” loans. In these transactions, Loan Giant loan officers prepared and executed purchase money mortgage loan documentation with no intent to actually fund the loans. They then immediately initiated refinance transactions, often in the same week and sometimes on the same day the original loan documentation was prepared. These refinanced loans were then sold to investors on the secondary market who were unaware that the initial loans were not funded. By engaging in the “portfolio loan” scheme, Loan Giant was allegedly able to, through false documentation, transform an otherwise non-conforming purchase money transaction into a refinance which was then ready for resale on the secondary market. The Loan Giant headquarters at 26500 Northwestern Highway in Southfield also houses the offices of Title Giant, Appraisal Giant and Credit Giant.

Be Sociable, Share!

One response to World Wide Financial Services, Inc. dba Loan Giant

  1. World Wide Financial and its former CEO, Jack Wolfe were the subject of a complaint filed by the United State’s Attorney’s Office for fraud against the US Dept. of Housing and Urban Development/Federal Housing Administration. The complaint lists numerous instances of fraud/wrongdoing and seeks millions in damages and fines.
    The Complaint was filed in the Eastern District of Michigan on 2/1/2007.

Leave a Reply

*

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>