This is almost a ho hum moment–another case of mortgage fraud, this time from Tucson: [Thanks L!]
A Tucson loan officer and real estate agent are being indicted for mortgage fraud.
A federal grand jury returned a six-count indictment against Scott Tyson, 43, and Susan Levy, 69, of Tucson, Ariz. The indictment charges the defendants with wire fraud and conspiracy to commit wire fraud.
Arizona now ranks in the top nationally for mortgage fraud due to illegal loans made during and after the real estate boom.
According to the indictment, licensed real estate agent Levy obtained $1.2 million dollars in loans to purchase multiple properties in 2006-07 but failed to disclose she had bought other properties during the same period. By failing to disclose her real financials, she allegedly lied to lenders by understating how much she really owed.Scott Tyson was the loan officer used by Levy in each of these transactions.
This case only made the news because of the dollar amounts involved. Mortgage fraud in Arizona [And throughout the nation.] often happened on a much smaller scale. Often it was as small as lying about a borrowers income. The small ones will never be prosecuted, but they are the ones on which the housing bubble was built.
We’ll see a few headlines like this story to show that fraud “no longer will be tolerated”–but the damage has been done.