Industry News

Mortgage exec. considered armed fugitive

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The owner of a San Francisco Bay Area mortgage company that allegedly defrauded lenders of more than $13 million has been sentenced to more than five years in prison, while the company's vice president remains a fugitive who is considered armed and dangerous by the FBI. The fugitive, Edward Batayeh, 39, is accused in an indictment of "double banking" fraudulent loans by selling the same loan to multiple investors.  Batayeh, the executive vice president and chief financial officer of CHL Mortgage Group in San Ramon, Calif., allegedly sent fraudulent loan packages including mortgage notes and deeds of trust to four financial institutions without the knowledge of property owners. The indictment alleges that Batayeh defrauded Gateway Bank of $6.3 million, Aurora Loan Services Inc. of $1.7 million, First Collateral of $2.7 million, and First Horizon Home Loan Corp of $2.3 million. Batayeh evaded FBI agents who tried to arrest him last week, fleeing in a maroon 2003 BMW X3 with Calif...