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mortgage broker learns to use the Internet … regulators shocked

Maryland U.S. Attorney Rod Rosenstein recently announced that a grand jury had indicted a 56 year old mortgage broker, principal of Mortgage Bankers, Ltd., for wire fraud and money laundering. According to the 17-count indictment the defendant used websites to solicit customers for his lending business and promote his company as a commercial lender capable of providing “difficult” or “impossible” loans of up to $300 million anywhere in the country. After making prospective borrowers mail and fax business plans, appraisals, tax returns, and insurance information, Snyder would advise the applicants that based on a “review” of their application they qualified to receive a loan but he required up-front payment of so-called “mortgage origination” and “conditional commitment” fees. In fact the company had no underwriters and did not submit any documentation to a lender for consideration. Snyder had socked away about $339,500 in advance fees before being caught.

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