Mortgage Professionals Sued For Fraud

Allison Tussey —  June 11, 2009 — Leave a comment

Two separate legal actions have been filed for mortgage fraud.  The Complaints, among other things, seek to enjoin a foreclosure proceeding, seek civil penalties and restitution for alleged mortgage loan fraud. The lawsuits allege violations of New Mexico’s Mortgage Loan Company & Loan Broker Act, Unfair Practices Act and Home Loan Protection Act.

Deutsche Bank, US Bancorp, Saxon Mortgage Brokerage, North American Specialty Insurance Co., Orlinda Martinez, Angelica Duran and Mountain View Mortgage have been sued by the New Mexico Attorney General to stop foreclosure and to for damages to prevent this from reoccurring. The facts allege that a 78-year-old Chimayo, N.M. woman, existing on a $501 per month Social Security, claims her signature was forged and other mortgage application information was falsified. The monthly mortgage payments are about $1500 per month for a $175,000 mortgage. The home went into foreclosure.

In the second suit:

Zia Trust Co, Discount Mortgage Co., Hartford Ins Co., Wendy and Mike Montoya and Robert L.Garretson were sued by the New Mexico Attorney General for violation of state law. In this case, an elderly Los Lunas , N.M., couple filed a complaint with the Attorney General’s Consumer Protection Division alleging a fraudulent mortgage loan transaction in the amount of $42,000 and misappropriation of more than $10,000. The couple also alleges they were grossly overcharged for brokerage fees.

Both lawsuits were filed on behalf of the state Financial Institutions Division of the New Mexico Regulation and Licensing Department.


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Allison Tussey

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