Greedy mortgage brokers charged with theft

The Asbury Park Press reported

"Three executives from Hawthorne Capital Corp., a mortgage brokerage with offices in Manalapan, (New Jersey) New York and Pennsylvania, have been charged with theft for failing to pay off original loans after refinancing mortgages, the Monmouth County Prosecutor's Office said."

"New Jersey customers used the company to refinance their mortgages, the Prosecutor's Office said. Typically when that happens, the lender pays off the original mortgages. But the Prosecutor's Office said it received a complaint from a Monmouth County homeowner who said a check sent to her original mortgage company had been returned for insufficient funds after the homeowner refinanced with Hawthorne."

Now, this is interesting because we normally find a title company and/or lawyer involved in the actual disbursement the new mortgage loans, not the mortgage broker. So, we think there’s more here than meets the eye.

Also interesting is the clumsiness in which the broker acted since there doesn't seem to be any attempt to hide the fraud by making a few months' worth of mortgage payments on behalf of the owner.

We’ll try to follow this story.

For your next title order or if you have questions about what you see here,
contact Stephen M. Flatow
Vested Title Inc.
648 Newark Avenue, P.O. Box 6453,
Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com

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