Saturday, October 4, 2008

Loan officer guilty of mortgage fraud

From the Oregonian:

Marty Ray Folwick, the Portland man who put together more than 70 fraudulent mortgage deals during the housing boom, pleaded guilty Thursday to four counts of bank fraud, wire fraud and money laundering.
Prosecutors recommended that Folwick serve 62 months in federal prison. He is scheduled to be sentenced Dec. 8.

Folwick, 50, worked as a real estate loan officer, matching would-be home buyers with loans. He admits to setting up bogus transactions with a series of straw buyers. He submitted falsified loan applications to lenders and took kickbacks out of the loan proceeds once the deals were done.
Folwick netted more than $800,000 out of the fraudulent deals.

Between tighter underwriting by lenders and the housing bust, the wave of mortgage fraud appears to be over. But Allan Garten, assistant U.S. attorney, said it remains a top priority to federal prosecutors.
"Given all we are witnessing on Wall Street, the prosecution of mortgage fraud is of particular significance," Garten said. "Our office wants to send a signal to the community that this type of conduct is not acceptable."

I thought this stuff didn't happen in Portland.