Inside these posts: Mortgage fraud

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Disbarred Chicago lawyer convicted of fraud

A disbarred Chicago lawyer faces the possibility of a lengthy prison term after a jury convicted her this week in a mortgage fraud case.

The U.S. Attorney’s office in Chicago says jurors convicted Lorie Westerfield on three counts of wire fraud and acquitted her of an additional fraud count after a weeklong trial. Each count carries a maximum 20-year prison sentence. Westerfield remains free on bond as she awaits sentencing on Aug. 4. Get the full story »

Fannie Mae asks for $2.5 billion in new U.S. aid

Government-controlled mortgage buyer Fannie Mae is asking for $2.5 billion in additional federal aid after posting a narrower loss in the third quarter.

Fannie Mae also said Friday it was likely that the market disarray and suspension of foreclosures due to big lenders’ problems with flawed documents will have a negative impact on the delinquency rates of its loans, its expenses and foreclosure timelines. However, the company said, “we cannot yet predict the extent of its impact.” Get the full story »

Countrywide’s Mozilo settles suit for $67.5 million

Angelo R. Mozilo, who presided over the spectacular rise and devastating fall of Countrywide Financial Corp., struck a deal Friday to avoid going to trial next week on accusations of investor fraud and insider trading. Mozilo agree to pay $22.5 million in fines to the SEC and to turn over $45 million in ill-gotten gains to former shareholders who have sued him.

Illinois officials expose four mortgage companies

Illinois regulators have “outed” four mortgage servicers that it said did not respond to requests for information on their foreclosure procedures. Get the full story »

Mortgage fraud on rise again

According to data from research firm CoreLogic, prepared for the Wall Street Journal, losses from mortgage fraud rose 17 percent last year after declining 57 percent in 2008. And the scams are getting more sophisticated to counter tighter rules put in place after the market collapse.

Illinois sues Countrywide over subprime loans

The state of Illinois sued former mortgage giant Countrywide Financial Corp. on Tuesday for allegedly using discriminatory lending practices for minority borrowers.

The lawsuit, filed in Cook County Circuit Court by Illinois Attorney General Lisa Madigan, said an investigation revealed that African-American and Latino borrowers were much more likely to be given risky subprime loans by the lender than similarly situated whites from 2005 to 2007.

SEC focusing on Magnetar in mortgage probe

From the Wall Street Journal | The Securities and Exchange Commission is focusing deals made by Illinois hedge fund Magnetar Capital in its investigation into collateralized-debt obligations, the complicated mortgage securities at the heart of the financial crisis, according to people familiar with the matter.