2007-12-18 — mortgagedaily.com
A former loan coordinator at Washington Mutual F.A.'s subprime unit was bribed with $100,000 in payments from a mortgage broker to help process fraudulent loan packages. He also was paid by in-house loan officers to fund mortgages with fraud.
...
"Ngo admitted that most of the payments he received from the broker were payments made for ensuring that fraudulent loan applications referred to Long Beach Mortgage by the mortgage broker's firm were processed and funded," the statement said.
The case involves Iftikhar Ahmad, who was arrested in August, and his company I&R Investment Properties LLC. Ahmad allegedly sold San Joaquin Valley area properties to straw buyers -- collecting more than $1.5 million in proceeds.
The fraudulent information submitted included employment, income and identification documents.
Ngo also reportedly admitted that he took payments from originators employed at Long Beach to help push fraudulent packages through the loan process or help "fix" the loan packages by creating fake documents.
Ngo is apparently cooperating with investigators and naming names. We wonder how widespread this was at Long Beach/WaMu... and other originators. Ultimately it will be interesting to see how much of the garbage loans were due to outright fraud like this as opposed to just "you'll be able to refinance!" optimism...
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