Greedy mortgage brokers charged with theft.

The Asbury Park Press reported

Three executives from Hawthorne Capital Corp., a mortgage brokerage with offices in Manalapan, New York and Pennsylvania, have been charged with theft for failing to pay off original loans after refinancing mortgages, the Monmouth County Prosecutor's Office said.

New Jersey customers used the company to refinance their mortgages, the Prosecutor's Office said. Typically when that happens, the lender pays off the original mortgages. But the Prosecutor's Office said it received a complaint from a Monmouth County homeowner who said a check sent to her original mortgage company had been returned for insufficient funds after the homeowner refinanced with Hawthorne.

Now, this is interesting because we normally find a title company and/or lawyer involved in the actual disbursement the new mortgage loans, not the mortgage broker, and there is no mention in the story or the Prosecutor's press release of any involvement. So, we think there’s more here than meets the eye. We’ll try to follow this story.

The Monmouth County, New Jersey Prosecutor's press release can be found here.

If you have questions about what you see here,
contact Stephen M. Flatow
Stephen's Title Agency, LLC
StephensTitle@comcast.net
973-556-1628 Fax