Monday, August 18, 2008

A New Weapon Against Mortgage Fraud?

This is a perfect example of why a national loan originator licensing/registry system is long overdue.

Portrait of a scam artist (Orange County Register, 08/15)

He received 10 years in state prison - 1 year for each of the families he caused to go into foreclosure. Light sentence, it seems to me.

"Osborn got sales leads from his employers, who bought them through sites like and", said George McFetridge, a deputy district attorney in Orange County who prosecuted Osborn. Osborn seemed to have a knack for finding folks he could manipulate."

HR3221, the recently signed Housing and Economic Recovery Act of 2008 (highlights here), includes an originator licensing & registry provision. The question is, how well will it be enforced?

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