Ex-Loss Mitigation Negotiator Cops Plea, Faces Up To 5 Years, $250K In Fines For Ripping Off Lender-Employer In Short Sale Scam

In Central Florida, the Orlando Sentinel reports:

• According to court documents, [former loss-mitigation negotiator with Taylor, Bean & Whitaker Richard] Nanan was part of a short-sale scheme with Victor Cedeno, a fellow Taylor, Bean & Whitaker employee. Nanan and Cedeno worked with real-estate agents, home buyers, title agents and lenders during short sales financed by Taylor, Bean & Whitaker, according to court documents.

• Nanan negotiated and approved short sales of foreclosed homes owned by Taylor, Bean & Whitaker with mortgages for about 90 percent of the mortgaged value of properties, according to his plea agreement. Then, they falsely reported they approved the sales at about 80 percent of the mortgaged value, court records said.

• Cedeno and Nanan intercepted the payoff checks, which were then fraudulently endorsed by Cedeno, Nanan's plea agreement said. Cedeno and his girlfriend, Genesis Valdez, would retain any amount from the closing in excess of that 80 percent, and paid Nanan for his role. Nanan, who pleaded to a conspiracy charge, spoke briefly during the hearing. He faces up to five years in prison and a fine of $250,000.

Source: Two men plead guilty in mortgage fraud cases.