Industry NewsMortgage

Chase loss mitigator convicted of soliciting bribe

Employee tipped borrower to mortgage fraud report

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A former Chase Bank loss mitigation specialist faces up to 95 years in prison after being convicted of alerting a borrower -- who'd fallen behind on payments on seven properties -- of a possible criminal mortgage fraud investigation.Frank E. Mendoza, 45, of Victorville, Calif., allegedly demanded a $25,000 bribe from the borrower, who contacted the FBI.A jury determined that Mendoza agreed to accept $10,000 in cash, and that the the borrower made two payments of $5,000 to him. Mendoza was arrested after making the second payment on June 29, 2009.Prosecutors said that as part of his work duties, Mendoza had been conducting an investigation of the delinquent borrower on loans made on seven properties in Palmdale, Calif.Mendoza reported to Chase that he suspected the mortgages were obtained fraudulently, and in November 2008 Chase filed a Suspicious Activity Report with the Financial Crimes Enforcement Network (FinCEN).Several months later, prosecutors said, Mendoza approached the borrowe...