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Posts tagged as “Mortgage Fraud”

NY App. Court Holds Strict Compliance Required for ‘Separate Envelope’ for Pre-Foreclosure Notice

The New York Appellate Division, Second Department, recently affirmed a lower court’s order granting summary judgment in favor of a borrower in a foreclosure action due to the mortgagee’s failure to comply with the “separate envelope” requirement of New York’s Real Property Actions and Proceedings Law 1304(2).

7th Cir. Holds LLC Act Did Not Shield Owner from Liability for Fraudulent Loan Closings

The U.S. Court of Appeals for the Seventh Circuit recently ruled in favor of a bank suing to recover for a fraudulent loan scheme, finding that the Illinois Limited Liability Company Act did not shield the closing agent company’s owner from liability in a fraud scheme because he was substantially involved in the fraud and the scheme would have failed without his individual participation. A copy of the opinion in Fifth Third Mortgage Company v. Kaufman is available at:  Link to Opinion. Straw buyers submitted fraudulent loan applications to a bank. The participants in the scheme used an attorney to…