Mortgage Executive Turns Herself in on Mortgage and Wire Fraud Charges

admin —  July 30, 2009 — 1 Comment

Stacy Lynn Chamberlain, 42, Unionville, Virginia, has been sentenced to 45 months and 5 years of supervised release as well as restitution in the amount of $1,247,810.50. As previously reported on Mortgage Fraud Blog, Chamberlain plead guilty in May to 1 count of bank fraud and 1 count of wire fraud.

The indictment originally charged Chamberlain with one count of Bank Fraud, upon Fremont Savings and Loan, based in Anaheim California, eighteen counts of Wire Fraud, and one count of Interstate Transfer of Money Taken by Fraud. The alleged victims of the eighteen fraud counts were various mortgage companies and investors.

The Bank Fraud Count charged that in early 2004, Chamberlain a branch manager for the Richmond Branch of Gateway Funding Diversified Mortgage Services, planned to purchase a $489,900 house in Jarrettsville, Maryland, without putting any money down, which required her to obtain a first mortgage loan for $440,910 and a second mortgage loan for $48,990. The indictment alleges that because her credit was bad and she could not qualify for such a loan, Chamberlain decided to purchase the house in the name of RLS, a nominee straw purchaser. However, because RLS had her own financial difficulties and could also not qualify for such a loan, it is further alleged Chamberlain created fraudulent income and employment information for RLS that would elevate her creditworthiness to A+ level so that Fremont would not verify the information as closely.

In reliance on the allegedly false statements, Fremont approved both loans and then sold the $440,910 first mortgage loan to Deutsche Bank and the $48,990 second mortgage loan to Citifinancial. Within a short time after the loans were made to Chamberlain, the indictment charges she stopped making the monthly payments and both loans went into foreclosure.

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One response to Mortgage Executive Turns Herself in on Mortgage and Wire Fraud Charges

  1. lyndamilitomilito August 9, 2009 at 9:18 am

    fredmont help would take any info to allow a loan to go through

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