latest Mortgage scam BROKERS beware. HM Brokers take note

[Jay Hinrichs]

Latest Scam out of CA.  to those who may not know but a CA. Licensed RE Broker can do HMLs using their RE Broker license .. I think the only state that has this carve out.

So this is a very sophisticated scam.. Scammers hire folks to solicit CA Brokers and offer them Wholesale lines.. These are large lines of Credit that allow the lender to leverage theirs or investors money into loans.. Just like conventional brokers or lenders.

Once fully approved the Mortgage Broker is asked to send in 1% of the line of credit as their fee to access it.. So 10 mil = 100k. Brokers send that in and then are put through a series of videos showing how to package the loans and load them into the companies system.

Broker does that loads them into the system and now you have individual borrowers with all their personal info being transmitted to the fake wholesaler lender..  Deal is ready to close Escrow contacts lender for funding and then the excuses start and or they just ghost them.

Once caught basically all websites are taken down phone numbers e mails killed etc etc.. Broker is out a very large amount of their upfront money .. scammers have borrowers info.. And the damage is done.   This info comes from the Latest California Department of Real Estate Monthly communications.  If anyone wants a link just drop me a pm..

@Jay Hurst @Jeff S.@Eric Gerakos

[Jay Hinrichs]

Quote from @Jay Hurst:

Quote from @Jay Hinrichs:

Latest Scam out of CA.  to those who may not know but a CA. Licensed RE Broker can do HMLs using their RE Broker license .. I think the only state that has this carve out.

So this is a very sophisticated scam.. Scammers hire folks to solicit CA Brokers and offer them Wholesale lines.. These are large lines of Credit that allow the lender to leverage theirs or investors money into loans.. Just like conventional brokers or lenders.

Once fully approved the Mortgage Broker is asked to send in 1% of the line of credit as their fee to access it.. So 10 mil = 100k. Brokers send that in and then are put through a series of videos showing how to package the loans and load them into the companies system.

Broker does that loads them into the system and now you have individual borrowers with all their personal info being transmitted to the fake wholesaler lender..  Deal is ready to close Escrow contacts lender for funding and then the excuses start and or they just ghost them.

Once caught basically all websites are taken down phone numbers e mails killed etc etc.. Broker is out a very large amount of their upfront money .. scammers have borrowers info.. And the damage is done.   This info comes from the Latest California Department of Real Estate Monthly communications.  If anyone wants a link just drop me a pm..

@Jay Hurst @Jeff S.@Eric Gerakos

 wow, new one for me. Would almost have to think it is someone that used to be in the industry to even understand how warehouse funding facilities work etc.  

for sure this is as the state says in their article extremely sophisticated and thought out scam.
The poor broker who gets scammed is not only out a lot of money but their reputation is going to suffer big time as their borrowers info is now all out on the Dark Web.. And for sure this is not something folks will understand unless they are in the industry.. But those folks get scammed everyday as we know.. with fake lenders..

the fake lenders in the commercial world have been around for ever.. I have colleagues that have gotten caught up in those mainly promises of large loans you know 10 to 100 mil.. its coming next week just need the Sultan of Burnai to sign off that kind of BS.. And as I mention Remington I ran into those guys. But they approved me way to fast without enough questions so even though it was only 10k I just felt I would never get the loan and lose my 10k.. had another scammer drag me to NYC for the dog and pony at least I got a trip to the big apple out of it :)