Industry News

Six mortgage brokerages shut down after random inspections

Massachusetts cracks down on mortgage fraud in low-income communities
Published on Sep 15, 2006

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Surprise examinations of mortgage brokerages and lenders in low-income communities in the Boston area are part of a coordinated effort by Massachusetts officials to crack down on mortgage fraud.

In recent weeks, the Massachusetts Division of Banks has issued cease-and-desist orders and closed the doors of six mortgage brokerages that allegedly submitted false information about borrower's incomes to lenders.

In one instance, a broker used a Web site approved by his company to verify salary information to instead systematically inflate borrower incomes by 125 percent, investigat ...

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