Mortgage Fraud Lawsuits Targeting Arizona Industry Players, Homebuyers

Mortgage brokers, appraisers, real estate agents, title firms and home buyers have been targeted in dozens of civil lawsuits filed in Arizona within the past few months by big lenders and Wall Street investors, according to a recent article in The Arizona Republic, at azcentral.com.

The allegations of mortgage fraud include charges of "cash back" deals to lying about income on loan documents. The suits are believed by some to represent the beginning of the fallout from mortgage fraud in Arizona.

Civil lawsuits alleging mortgage fraud are welcomed sources of information, according to one regulator. These suits often confirm matters that regulators may already be investigating, and could portend criminal charges by law enforcement agencies.

"The discovery, deposition and documents from civil litigation of cash-back deals will clearly show criminal conduct. Private lawyers will be able to package up these cases for prosecutors and criminal trials," according to attorney Michael Manning, who represents several plaintiffs involved in the lawsuits.

To read more, including some details from specific lawsuits, see Lawsuits targeting mortgage schemes.
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