The U.S. Department of Housing and Urban Development (HUD) has announced the ‘indefinite debarment’ of three South Florida mortgage loan officers and a Pittsburgh title agent following their criminal convictions on charges they defrauded elderly borrowers, mortgage lenders and the Federal Housing Administration.
According to HUD, Marcos Echevarria, Louis Gendason, John Incandela and Kimberly Mackey pled guilty to charges of conspiracy to commit wire fraud for their part in a $2.5 million nationwide reverse mortgage scam. Echevarria, Gendason and Incandela worked for the Florida-based 1st Continental Mortgage, and Mackey was a licensed title agent and proprietor of Real Estate One Land Services Inc., located in Pittsburgh.
All four individuals are currently serving prison terms. HUD's debarment action effectively bans these individuals from conducting business with the federal government in the future.
‘HUD will not tolerate those who abuse the mortgage system and target elderly borrowers for their personal gain,’ says HUD Secretary Shaun Donovan. ‘Reverse mortgages can help senior citizens on fixed incomes plan for the future, but it is shameful to bilk the elderly out of their life savings.’