September 29, 2020

Liar Loan Mortgages

“This is the story of Charlie Engle who is now behind bars serving a 18 month jail sentence for mortgage fraud. More specifically, for taking out what is known as a ‘Liar Loan Mortgage’.

Liar Loan Mortage

The way the authorities tracked down his Liar loan mortgage transaction was through his use of a Stated Income mortgage, in which he is said to have inflated his income.

Mr. Engle is said to have received two loans from Countrywide by falsely stating his income, which was what most of the people were doing in the early part of 2006, at the peak of real estate bubble.

Millions of people took out Stated Income mortgages and inflated their incomes, but Mr. Engle gained the increased attention of Internal Revenue Service special agent Robert W. Nordlander, who went to great lengths to pursue him.

It is interesting to note, and quite sad indeed, that the only prosecutions and convictions that have come from the mortgage crisis have been of very low level people. People who were in the wrong, but caught up in the same fervor as the rest of the nation – while the architects of the whole mortgage crisis have so far escaped unscathed.”

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