Industry News

North Carolina men charged in alleged mortgage fraud

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A North Carolina mobile home salesman and one of his employees face federal charges accusing them of arranging $11 million worth of fraudulent mortgages for their customers, the Raleigh, N.C., News & Observer reported Tuesday. Legal documents said Donald W. Gupton, owner of Dynasty Homes of Henderson, Superior House Center, and Creative Real Estate and Manufacturing Housing Sales Center, and a manager, Richard D. Meador, used various methods to falsify applications. One method was using the same mobile home as a trade-in for nine buyers, according to legal documents in the case. "Between 1999 and 2003, the conspirators sold in excess of 150 manufactured homes that resulted in HUD-backed mortgages exceeding $11 million," according to the charges against the pair. The U.S. Housing and Urban Development department insures loans for buying mobile homes. In 2003, the N.C. Attorney General's Office sued to stop Gupton from business practices that it claims were designed to leave consumers ...