Wednesday, January 16, 2013

Suspect Pinched For Fraudulently Operating As Loan Broker; Cops Say Operator Pocketed Thousands Of Fees For Unmet Loan Modification Promises

In West Palm Beach, Florida, The Palm Beach Post reports:

  • Nelson Posada offered struggling homeowners his expertise to help them avoid foreclosure. But authorities say the Wellington man’s company instead took thousands of dollars in fees without getting the mortgage loans modified in return.

    Posada, 45, was arrested Saturday on one count of fraudulently operating as a loan broker, authorities said. Posada was released from the Palm Beach County jail on Sunday on $3,000 bail.

    Posada was a managing member of Loss Mitigation Professionals, a purported loan-modification company that incorporated in West Palm Beach in April 2008, the state Office of Financial Regulation said.

    From January 2010 to March 2011, Posada and an unidentified partner operated the company without a proper license, according to the probable-cause arrest affidavit. The company received a final cease-and-desist order on March 8, 2011.

    According to the affidavit, Posada and his partner engaged in an advanced fee scheme targeting Hispanics. They persuaded customers that their experience and knowledge of the industry could help them save their homes through some form of loan modification, such as a lower interest rate, a lower payment or a reduction in principal.

    A review of bank records provided by the company showed that about $375,000 in advanced and processing fees and commissions had been collected from clients and affiliates, according to the affidavit.

    Investigators contacted about 100 people from the company’s client list and interviewed 22 of them. Those 22 had paid more than $49,000 in advanced fees were collected for loan modification services.

    Loss Mitigation Professionals appears to have made contact with banks in some cases but not all, the affidavit said. It doesn’t appear that any customer received a loan modification as a result of its services, the affidavit said.

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