Yes, according to Hoovers, this is the same Beneficial Mortgage Corp that Americans love to hate. The U.S. Department of Housing and Urban Development’s Mortgagee Review Board has suspended Beneficial based on evidence of serious violations under HUD’s regulations. This is Beneficial Mortgage Corporation of San Juan, PR.
What is alleged:
alleged fraud totalling nearly $20 million.
More than 50 agents took part in the search at two offices of Beneficial Mortgage in San Juan’s financial district, FBI spokesman Harry Rodriguez said.
The alleged $19.3 million scheme involves at least 130 loans, according to a cease-and-desist order filed earlier this month by the Office of the Financial Institutions Commission.
FBI and Secret Service were involved
The order alleges that the company administered mortgages for Puerto Rico’s Cooperative Bank but did not make payments as promised, leading the bank to believe that dozens of people never paid their loans.
Such actions began in 2001 and placed clients at “imminent risk” of suffering great damage, the order states. The loans ranged from $50,000 to more than $500,000.
The order says Beneficial Mortgage also asked bank officials for a long-term loan to cover $18.7 million in missing or lost loans.
The order was filed against the company’s president, treasurer and secretary. No one answered the company phone number on Wednesday.
The FBI said that Secret Service and Internal Revenue Service agents also were involved in the raid.
Nobody answered the phone. Does that sound familiar?
HUD suspension includes the following:
Beneficial Mortgage Corp. failed to tell HUD that its mortgage servicing practices were being investigated by a Puerto Rico regulator and that it had been hit with sanctions.
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