The Now-Failed Omni National Bank Helped Fund Millions in Loans for Convicted Mortgage Fraudster Mark McBride. Omni also has been linked to other mortgage fraud operations uncovered by regulators, stolen multiple identities and another where they falsified the income and employment records of borrowers he steered to Atlanta-based Omni.
Omni was the go to funding source for fraudulent property flippers, some of whom did superficial repairs in order to resell homes at inflated prices with the use of straw buyers to obtain fraudulent loans, often making as much as $30,000 in fees on individual transactions.
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These prosecutions are a reminder on how neighborhoods are impacted by mortgage fraud.
When these "mortgage fraud" properties sell at inflated prices they leave neighboring homes artificially inflated and then property taxes then rise. Then if these "mortgage fraud" properties deteriorate because they are left vacant, the same nearby homeowners may have a difficult time selling their homes and then property values can start to decline.
The housing values in various types of neighborhoods have climbed, fallen, climbed, and has fallen again. The main cause is mortgage fraud and continues to be a recurring and massive problem. Until we can prevent mortgage or at least get it under control it will continue to delay the housing market turnarounds and keep legitimate entrepreneurs from being able to purchase, renovate, and resell homes in neighborhoods.
It is important to note that institutions don’t commit fraud, companies don’t commit fraud – people commit fraud.
We must be vigilant against fraud, recognizing its signs and taking proactive, definite, and realistic steps to not only prevent it but also punish it.
It starts with me.
It starts with you.
It starts with us…
Michael S. Richardson
Director/Mortgage Fraud Services
Author of "An American Epidemic, Mortgage Fraud a Serious Business"
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