Minnesota Regulators Raid Mortgage Companies; Title Premiums, Loan Payoffs Allegedly Pocketed By Closing Agent Affects Thousands Of Deals Nationwide

In Moundsview, Minnesota, FOX News Channel 9 reports:

• In a Commerce Department raid, officials found thousands of mortgage closings that were never mailed at Title Source Mortgage Company in Moundsview and Home Sweet Home Equity in Little Canada. “Instead of sending the money on to the insurance company they kept the money, that's just fraud, stealing, theft,” says Bill Walsh from the Minnesota Commerce Department.

• The findings meant that more than 3,000 homes nationwide had no clear owner -- with 192 of the homes in Minnesota. "That puts in jeopardy the integrity of the title and who owns that house, so later if those people go on to sell or refinance, they may run into a problem with who owns the house, and when did you actually own it,” says Walsh. The Commerce Department has revoked the license of the companies. Trent Jonas, and two of his employees, have been charged with civil fraud. They were allegedly pocketing all the title insurance, a total of $196,000, and failed to pay of $1.3 million in old loans. It appears the $147,000 went to a suite at the Minnesota Vikings games, and almost $20,000 went to political contributions.

Source: Minn. Mortgage Companies Pocketing Money (Thousands of homes affected).

See Theft Of Escrow Funds I and Theft Of Escrow Funds II for other stories of trust account / escrow account theft of funds. sneaky slick escrow agents beta