Terrell Ford, 33, Kansas City, Missouri, pled guilty to participating in a conspiracy in which low-income borrowers obtained home loans or refinancing by submitting fraudulently inflated appraisals and false financial information to lenders. Ford faces up to 25 years in prison for his role in the $14 million mortgage fraud scheme.
According to the Information and other court documents, from January 2002, through January 2004, Ford was involved in a conspiracy wherein he and his co-conspirators would submit false and fraudulent loan applications and appraisals to lenders for the purposes of obtaining funds. The funds were then transferred in whole or part to accounts managed by the defendant and his co-conspirators. During the conspiracy, Ford would entice prospective borrowers, usually those that were low income or lacked real estate experience, and were in need of money, to purchase a home. The conspirators told the borrowers that they could qualify for a loan or a refinance regardless of their credit rating or financial situation. What the conspirators failed to advise is that the appraisals would be inflated and at closing, significantly increased origination fees would be charged and higher interest rates would be applied.
The following properties are listed in the Information as involved in the scheme:
4000 Block of College, Kansas City, Missouri; and
East 58th Street, Kansas City, Missouri.


Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.