Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Utah mortgage broker charged with construction loan fraud
SALT LAKE CITY (5/24/10)--A federal grand jury returned a 15-count indictment against a Salt Lake City man on charges of bank fraud and making false statements to two credit unions in an alleged scheme to get construction loans approved under false pretenses. The indictment alleges Joshua Lee Butcher, 28, worked with two credit unions--Salt Lake CU and Transwest CU--to broker new home construction loans ranging from about $384,000 to $637,000 (loansafe.org May 21). He is charged with providing false information about borrowers that caused the credit unions to approve and fund home construction loans. Butcher allegedly met with potential borrowers to obtain the financial information for the loan application, said the indictment. Borrowers provided him with accurate information--and sometimes documentation--about their income and assets. The indictment said Butcher knew the borrowers would not qualify for the loans so he prepared and submitted false loan applications on their behalf to induce approval for higher amounts. He received broker fees for the loans, said the court document. The falsified documents included: overstated income; listing of assets which the borrowers did not own; false employment information; applications for owner-occupied homes that the borrowers planned to use as investment homes; and indications that the construction loans were for primary residences of the borrowers when they weren't. The indictments include eight counts of bank fraud, with a maximum penalty per count of 20 years in prison and a $250,000 fine; and seven counts of making false statements, each having a maximum penalty of 30 years in prison and a $1 million fine.


RSS print
News Now LiveWire
Hensarling: "Post Dodd-Frank we've seen community banking wither on the vine under regulatory burden, w/ costs passed to low income buyers"
17 minutes ago
Rep. Capito on #HR5148: This is common sense reform...could work well in areas with avg home price less than $200K, would help those buyers
19 minutes ago
.@FinancialCmte is now discussing #HR5148. Act would amend TILA to exempt high-risk mortgages from property appraisal reqs
20 minutes ago
Reps. Hensarling and Luetkemeyer have pledged to ensure #creditunion parity before #HR4042 sees action on House floor
24 minutes ago
The @FinancialCmte has ordered a recorded vote for #HR4042. There will be no #creditunion amendment to the bill.
26 minutes ago