Two down, thousands to go (or, Eloise Anderson’s amazing summer)

PD this morning:

A Solon builder who has been tied to mortgage fraud has agreed to get out of the construction business as part of his punishment.

Edward Emery Jr. pleaded guilty Thursday to submitting a false loan application for a woman who bought a $490,000 home on Sedge Circle in Solon that he built. Emery also admitted to similar schemes involving 37 homes that he built in Solon and Glenwillow.

Eloise Anderson of Richmond Heights pleaded guilty to using bogus job and income information to buy the Solon house, two houses in Cleveland and another house in Pepper Pike — closing more than $1.3 million in deals over a five-month span in 2005.

Emery was not connected to Anderson’s other homes, Assistant Prosecutor Michael Jackson said. A title company owner, a mortgage broker and two officials from another mortgage company also face charges in the case.

Anderson, a 60-year-old postal clerk, was passed off as a postal inspector earning twice her $55,000 salary.

She planned to quickly dispose of the homes under rent-to-own deals, Jackson said. Solon police broke the case when neighbors on Sedge Circle complained that the tenants were not keeping up the property.

Here’s the indictment, courtesy of the excellent Mortgage Fraud Blog.

So who lent Eloise Anderson all that money?

The First National of Arizona and Meritage loans were actually provided by Mortgage Electronic Registration Systems, Inc., which would have gotten the applications from the local mortgage broker(s) working with Anderson, signed up the two lenders, and then peddled the paper to Deutsche Bank.

Anderson got all of these mortgages approved between the beginning of May and the end of September, 2005!

None of the lenders listed above are implicated in Anderson and Co.’s fraud — in fact, they’re mostly listed in the indictment as victims. But think about it: She faked her income, faked her credit, applied to borrow a million and a half dollars in five separate steps over a five-month period, from four different subprime lenders, and they all bought it.

Maybe they were all just too busy to notice.

Or maybe they liked what they saw.


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