Nine Face Federal Indictment In Texas Mobile Home Mortgage Fraud

The Houston Chronicle reports that nine Conroe, Texas area residents were arrested yesterday in connection with an alleged mortgage fraud scheme involving loans made to unqualified mobile-home buyers. The scheme reportedly involved making purchase transaction appear as refinancings so that buyers could avoid downpayment requirements, and also involved the use of inflated appraisals, according to the indictment. Those indicted are :

• Mobile home seller Keith Raybon, owner of Emerson Manufactured Homes; Michael Davis, an Emerson employee; Michael David Grimes Sr., an Emerson employee; Jeannie Nelson, a mortgage broker and executive vice president of Royal Lion Mortgage; Hollys Devayne Heasley, who ran an appraisal business; Holly Heasley Arbuckle, an employee of Heasley's company; Patricia Lennon, who ran Ameristar Residential Appraisal Services; Heather Adams, an employee of Old Republic Title Co. of Conroe; and Kandy Powell, who was a Royal Lion employee.

For more, see Nine arrested in mortgage fraud case (Authorities say loans made to buyers who weren't qualified).

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