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Non-Tech : Home Solutions of America (HSOA), The best is yet to come
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To: Labrador who wrote (20762)5/15/2010 10:18:12 AM
From: Labrador   of 20808
 
Delayed another month, now presumably July. I wonder why it takes a year for a sentence to be rendered?

American Banker

May 17, 2010 Monday

SECTION: MORTGAGES; Pg. 7 Vol. 175 No. 75

LENGTH: 178 words

HEADLINE: Manager Admits Guilt In U.S. Mortgage Plot

BYLINE: Ed Roberts

BODY:

The former servicing manager of U.S. Mortgage Corp. and its CU National
Mortgage has pleaded guilty to conspiring to defraud credit unions and Fannie
Mae in a $140 million scandal.

Leroy Hayden, 47, was convicted Thursday in the U.S. District Court in
Newark, N.J., of conspiracy to assist Michael McGrath, the former president of
U.S. Mortgage and CU National, in his scheme to fraudulently sell Fannie
mortgages that the Pine Brook, N.J., company was servicing on behalf of credit
unions.

Hayden told authorities he provided numerous reports to credit unions falsely
stating that loans that had been sold were still in the credit unions'
portfolios, and falsified records, at McGrath's direction, to conceal these
fraudulent sales.

Hayden also admitted that he modified data in U.S. Mortgage's servicing
system to help carry out the scheme.

As many as 28 credit unions stand to lose as much as $125 million in the case
and are frantically negotiating with Fannie for the return of their mortgages.

McGrath pleaded guilty last June and is scheduled to be sentenced in July.
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