Thirty-four year-old Nicole Lyder, a mortgage broker in Boston, was sentenced by a Suffolk County judge to two years of imprisonment after she pleaded guilty to charges of falsifying mortgage papers for unqualified clients in order to get sales commissions. These clients eventually went into foreclosure as their income never really qualified for the loans that Lyder got for them.
Lyder changed her not-guilty plea to guilty after she was made to understand that she could expect a lower bail and parole eligibility in three months if she entered a guilty plea.
Lyder helped unqualified borrowers in Dorchester, Taunton and Randolph to apply for home loans with California-based Fremont Investment and Loan Inc. Fremont is itself the main subject of a pending case of predatory lending, filed by Massachusetts Attorney General Martha Coakley in 2007. Massachusetts investigators ascertained that Lyder falsified business certificates and other documents to increase the financial standings of her clients and assured them that the monthly payments would be affordable.
Lyder’s case of mortgage fraud has been one of the major reasons for the rapid rise in foreclosures across the nation. Grace Ross of the Massachusetts Alliance Against Predatory Lending said that cases similar to Lyder’s should be exposed to prevent people from being enticed to take loans that would later bring them to foreclosure.
Two of Lyder’s clients gave up their public housing slots after getting attracted to her offer. Little did they know that they will end up in foreclosure, a situation they would not have experienced had they not met Lyder.
Mortgage fraud has been one of the cases being focused on by the office of Attorney General Coakley. Coakley has made it one of her advocacies to prevent the rise in mortgage fraud, as it causes foreclosures that weaken the housing market and eventually the economy.
Related Posts:
- Mortgage Fraud Soars Amid Foreclosure Listings
- Avoiding Mortgage Fraud
- South Boston Areas Experience Increased Foreclosed Home Auctions
- Swindlers in Foreclosure Listings Not Punished
- Fighting Foreclosure Fraud
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