Regulation and Compliance

Mortgage Exec Sentenced in Fraud, Eight Years After Guilty Plea

Jul 19, 2019
General Electric has agreed to a $1.5 billion settlement to resolve federal claims involving the alleged misrepresentation of sub-prime loans originated by its former sub-prime mortgage subsidiary WMC Mortgage

A former mortgage executive who pleaded guilty to bank fraud eight years ago was sentenced this week to three years in prison.
 
Michael Ashley pleaded guilty in 2011 to committing bank fraud while in a leadership role of vice president and chief business strategist at Lend America, a Melville, N.Y-based mortgage giant that failed in 2009 and left more than $49 million in loans unfunded. However, according a Newsday report, Ashley was not sentenced to prison at the time because he was cooperating with federal authorities in the investigation of criminal activity other financial executives. Ashley’s case was kept under seal until 2014 and his sentencing was postponed 14 times.
 
Federal law allows for prison sentences of up to 30 years for bank fraud, but prosecutors appealed to Judge Joseph Bianco for a substantially lower sentence. Bianco noted Ashley’s cooperation with federal investigators, but defended his sentence by stating, “This was not a small crime, and no matter how it started, it led to $50 million in losses.”
 
However, Ashley will not be expected to report to prison immediately, as the judge added he would allow Ashley to take as long as a year to spend time with his mother while she underwent treatment for stage-four cancer and to arrange for someone to take charge of his business affairs.
 
In March of 2010, Ashley was banned from originating, marketing or submitting claims for FHA mortgages for life.
 
About the author
Phil Hall
Link copied
Published
Jul 19, 2019
Get the NMP Daily
Analysis and Data
Mortgage Rates Surpass 7% For First Time This Year

Freddie Mac reported the 30-year fixed-rate mortgage averaged 7.10%.

Freddie Mac today released its Primary Mortgage Market Survey, revealing the 30-year fixed-rate mortgage (FRM) averaged 7.10%, breaching the 7% threshold for the first time this year. “The 30-year fixed-rate mortgage surpassed 7% for the first time this year, jumping from...

Continue reading
People On The Move
Dovenmuehle Mortgage Welcomes New Chief Data Officer

Aaron Belovsky to lead data governance at Illinois mortgage sub-servicer

A Lake Zurich, Illinois-based mortgage lender has a new leader working on data governance, engineering and machine learning strategies. Dovenmuehle Mortgage, Inc. welcomed Aaron Belovsky as Chief Data Officer (CDO) this week. Belovsky brings more than two decades of s...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Regulation and Compliance
In Wake Of NAR Settlement, Dual Licensing Carries RESPA, Steering Risks

With the NAR settlement pending approval, lenders hot to hire buyers' agents ought to closely consider all the risks.

Regulation and Compliance
Apr 11, 2024
A California CRA Law Undercuts Itself

Who pays when compliance costs increase? Borrowers.

Regulation and Compliance
Apr 11, 2024
CFPB Weighs Title Insurance Changes

The agency considers a proposal that would prevent home lenders from passing on title insurance costs to home buyers.

Regulation and Compliance
Apr 10, 2024
Fannie Mae Weeds Out "Prohibited or Subjective" Appraisal Language

The overall occurrence rate for these violations has gone down, Fannie Mae reports.

Regulation and Compliance
Apr 10, 2024
Arizona Bans NTRAPS, Following Other States

ALTA on a war path to ban the "predatory practice of filing unfair real estate fee agreements in property records."

Regulation and Compliance
Apr 04, 2024
Kentucky Legislature Passes Bill Banning NTRAPS

The new law prohibits the recording of NTRAPS in property records, creates penalties if NTRAPS are recorded, and provides for the removal of NTRAPS currently in place.

Regulation and Compliance
Apr 03, 2024