Tucson AZ Home Loan Info

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Tucson Loan Officer Indicted by FBI

Tucson Loan Officer Indicted by FBI: blog by Mike in Tucson, AZ Mortgage LenderFrom time to time, I'll have to deny a purchase money loan application where the borrower's documentable income is insufficient for a loan approval.  Self-employed borrowers often find themselves in this situation, especially in the last two years as underwriting guidelines have tightened up.

It's understandable that taxpayers want to minimize their taxable income.  The rub comes when the borrower asks "if there's any way" to bump up the income.  My standard reply is to ask if they want to show more income on the current year's Tax Return and put off the purchase until such time as that can be done.

It's never fun to deny a loan, and since everyone in the transaction has an iron in the fire, so to speak, I get some heated phone calls as a result.

 Here's why it's important to play the game by the rules.

TUCSON, AZ—A federal grand jury in Tucson returned an indictment against Juan Delgado of Tucson, Ariz., charging the defendant with four counts of wire fraud.

According to the indictment, Delgado received over $1 million in loans relating to the refinancing of three separate Tucson properties from March 2006 through July 2007. In obtaining these loans, Delgado submitted loan applications that contained material false information including falsely inflating his income and/or failing to disclose a liability. At the time of these loan transactions, Delgado was a loan officer. Each of the properties specified in the indictment went into foreclosure.

An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

A conviction for wire fraud carries a maximum penalty of 20 years’ imprisonment, a $250,000 fine or both for each count. In determining the actual sentence, the judge will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

The investigation preceding the Indictment was conducted by the Federal Bureau of Investigations. The prosecution is being handled by Jonathan Granoff, Assistant U.S. Attorney, District of Arizona, Tucson.

CASE NUMBER: CR-11-3886-TUC-RCC

RELEASE NUMBER: 2011-254(Delgado)

_____________________

I'm Mike in Tucson, your preferred Tucson Arizona Mortgage Lender

NMLS #223495

SUNSTREET MORTGAGE LLC ~ Correspondent Mortgage Bank
Offices in Mesa, Tucson, Sierra Vista & Nogales

 

Comment balloon 13 commentsMike Jones • November 21 2011 05:28PM

Comments

It is  sometimes difficult for self employed people to get a mortgage.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 8 years ago

I never understand why a broker puts their life in jeopardy for one deal.  Makes no sense to me. 

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) about 8 years ago

Mike

I think we are going to see a lot more of this type of mortgage fraud.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 8 years ago

There is always more than one legal way, yet so many chose to cheat!

There is no way that the time necessary to get it done leagly would have taken 20 years or that the extra cost would reach 25 points!

Talk about stupid crooks! What makes this fool wrose than most is that "from March 2006 through July 2007" we could finance almost anyone with a pulse for only a few dollars extra.

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) about 8 years ago

Not a smart thing for someone to try and cheat -- but alas they keep trying don't they -- all the best.

Posted by Bob & Carolin Benjamin, East Phoenix Arizona Homes (Benjamin Realty LLC) about 8 years ago

Better if we all "stick to the guidelines", that's why they are in place...... Delgado probably never had a good night's sleep after submitting the fraudulant apps.... interesting post!

Posted by TERI LINDSAY, STAGELIGHT HOME STAGING CO. about 8 years ago

I guess that's pretty clear about providing documented income right?

Posted by Lyn Sims, Schaumburg IL Real Estate (RE/MAX Suburban) about 8 years ago

The self employed usually need to be cash buyers since mortgages are so difficult to get for them.

Wishing you and your entire family a wonderful Thanksgiving!!!!

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) about 8 years ago

I am working fraud reports for a major investor right now during this time frame.  I will not be surprised if there are further MAJOR indictments in my area concerning appraisers, LOs and agents.  Maybe even former homeowners.

Everyone be careful out there and "do the right thing!"

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) about 8 years ago

Hi Mike, you do a tremendous job of promoting yourself and the company on AR. This is a good piece of information to bring to the community and although I didn't know Mr. Delgado, his practices are probably all too well known. He's out of business and heading behind bars and soon others will follow. This shows the real estate community that we really are under heavy scrutiny to always do the right thing as it pertains to documenting all situations properly. I love your marketing and how you have put all the services to work for you. Take care,

Posted by Michael Rohde (Sunstreet Mortgage LLC. Licensed Mortgage Professional) about 8 years ago

Gee whiz! I had noticed that you hadn't posted in a long time, so when I clicked on the blog and saw the headline, I was terrified for a moment that it was you! Just kidding. Hope you had a great Thanksgiving!

Posted by Ann Heitland, Retired from Flagstaff Real Estate Sales (Retired from RE/MAX Peak Properties) about 8 years ago

GOOD MORNING MIKE!  Yep - I read about this - wonder if orange looks good on him?

Posted by Gabrielle Kamahele Rhind, Broker/Owner (KGC Properties LLC, Tucson Property Management & Real Estate) almost 8 years ago

Good Morning Mike, an excellent warning for everyone in the industry.  In many cases it is too late.  The Feds are slow but they will 'catch up' in the future.  Thanks for posting the information on the case, it is the first time I have seen it.

Posted by Dan Edward Phillips, Realtor and Broker/Owner (Dan Edward Phillips) almost 8 years ago

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