Colorado: Regulators say home lenders bilked of millions
DENVER, Colorado ” Regulators say they have uncovered a mortgage fraud scheme in Colorado that resulted in 88 home foreclosures after $8 million in kickbacks was paid to buyers and brokers.
The Colorado Division of Real Estate says about a dozen real estate agents have received sanctions ranging from fines to revocation of their licenses.
Division of Real Estate Director Erin Toll says results of the investigation have been turned over to the FBI, the IRS and other federal agencies.
Authorities say the scheme was based on inflated appraisals that were used to secure big home loans. Authorities say some of the borrowed money was used to pay kickbacks to real estate agents and buyers, and that the buyers then defaulted, leaving banks with millions in bad debts.
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