California Regulators Seek To Strip Mortgage Broker Of License

In California, media articles report that the California Department of Real Estate is trying to bar local broker Hendrix Montecastro from the industry, accusing him and his company, Stonewood Consulting Inc., of arranging inflated real estate appraisals in order to pocket huge commissions.

Montecastro already faces a number of civil lawsuits from investors accusing him of sucking them into a massive mortgage scam. Montecastro and a half dozen other defendants have been accused of running a real estate investment scheme that led the investors to buy multiple houses and that Montecastro then squeezed millions of dollars out of the resulting home equity. The investors claim to have been left holding the bag, owning houses with unaffordable mortgage payments. For more, see:

• State agency targets mortgage brokerage (North County Times)
• State targets Murrieta real estate broker (The Press-Enterprise)
• Details emerge in alleged scam (The Press-Enterprise)
• Go here for prior posts on Hendrix Montecastro / Stonewood Consulting.
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