Loan fraud from Maryland mortgage broker

The other day, one more mortgage broker was found guilty. He pleaded guilty in exchange for lowered sentencing. The broker is being charged by the U.S. Attorney for Maryland. These charges stem from a large number of fraudulent and phony mortgages and loans. This is an excellent example of why you should exercise caution when applying for personal loans and mortgages. Make sure you check out the loan provider thoroughly.

Maryland mortgage fraud

Several counts of mail fraud are what Maryland mortgage broker Douglas Skibicki pleaded guilty to. Skibicki admitted to many things. Apparently he "participated in a scheme to defraud lenders, family members, and banks." He applied for and received multiple mortgages and helped others receive mortgages under entirely fraudulent circumstances. Fraudulent appraisals, many times for empty lots, were made also with an appraiser that worked with Skibicki.

Bad for families to have installment loans taken out

The Maryland installment loans that Skibicki brokered were originally intended for families and businesses. These real estate loans were taken out as ways to refinance existing mortgages and get more financing out of existing properties. Empty lots would end up getting loans. Some would have minimal structures there. The homes were said to be three and four bedroom in size worth hundreds of thousands of dollars according to the appraisals. Skibicki got loans for families that they couldn't realistically pay back. The mortgage lenders and banks got false documentation.

Consequences mortgage fraud has

Though the mortgage fraud Skibicki has been charged with cost millions of dollars, he has been charged with mail fraud. Skibicki will not be able to do any short-term loan, financial or mortgage industry business because of a cease-and-desist order. Because Skibicki mailed the mortgage forms to lenders, the mail fraud charge is more severe. Skibicki may end up with 20 years in prison, having to forfeit $1.4 million property gains and may have to be fined twice the amount of any gains he has which will be determined in April this year.

Articles cited

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