Maryland Regulator Suspends Mortgage Originator's License In Connection With Alleged Bogus Sale Leaseback, Foreclosure Rescue Equity Stripping Scam

The Maryland Department of Labor, Licensing and Regulation's Office of the Commissioner of Financial Regulation recently announced enforcement actions against entities and individuals accused of illegal activities that victimized Maryland homeowners, including an outfit accused of violating state law in connection with an alleged bogus sale leaseback, foreclosure rescue equity stripping scam:

• Summarily suspended the mortgage loan originator license of Nicholas Elko for allegedly engaging in an illegal foreclosure rescue scheme in violation of Maryland's Protection of Homeowners in Foreclosure Act.

• Elko, who worked with Baltimore-based Equitable Trust Mortgage Corp., obtained the title to a Maryland residential property in foreclosure after promising the homeowner that he would convey title back to her after a period of time. Instead, Elko allegedly refinanced the property multiple times through Equitable Trust Mortgage. Each time that the property was refinanced, Elko stripped more and more equity out of the home, ultimately conveying the property to his mother.

For the press release, see DLLR's Financial Regulation Division Targets More Mortgage Scams.