| Broker Indicted After Collecting Advance Fees
OWINGS MILLS, MD - A federal grand jury has indicted Robin Neil Snyder, age 56, of Reisterstown, Maryland, and Mortgage Bankers, Ltd. for wire fraud and money laundering arising from a scheme to defraud loan applicants, prosecutors said. According to the 17-count indictment, Snyder, a licensed mortgage broker, owned and operated Mortgage Bankers, Ltd., originally located in Baltimore and relocated to Owings Mills, Maryland in 2005. From about March 2002 to January 2006, Snyder used an internet website (http://www.refinancecash.com) to advertise and solicit customers for his lending businesses, and promote Mortgage Bankers as a commercial lender capable of providing “difficult" or “impossible" loans anywhere in the United States in amounts up to $300 million. Snyder had prospective commercial borrowers mail and fax to Mortgage Bankers business plans, appraisals, tax returns and insurance information in support of the borrowers' loan applications.
Lender Heads For The Door
LOS ANGELES -- Sub-prime lender New Century Financial Corp., once the nation's second-largest provider of mortgages to high-risk borrowers, filed Monday for bankruptcy protection and immediately fired 3,200 workers, or 54 percent of its workforce.
The company said it intends to sell off its major assets.
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India’s mortgage borrowers face the big squeeze
Banks in India have tried to keep mortgage defaults low. To that end, they have held monthly repayments constant for existing variable-rate borrowers and increased the duration of the loans. This strategy is now reaching its limit. With monthly installments unable to cover interest costs, banks will have to seek more cash from the borrowers, who will have to curb other household expenditure to find the extra money. No rate cuts "We estimate that the current policy-tightening cycle is likely to reduce consumer demand considerably," Goldman Sachs economists Tushar Poddar and Mark Tan said in their report. Even then, there's very little chance of the Reserve Bank easing up on its hawkish stance in a hurry. Domestic tight-money conditions may not dissuade investments by large Indian companies, which have easy recourse to cheaper overseas borrowings.
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