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