Mortgage

Former mortgage supervisor faces a $ 51.9 million jail sentence for fraud

A federal court ordered Ron McCord, former chairman and founder of First Mortgage Co., to make payments of $ 51.86 million to victims in reparation and serve over eight years in prison for fraud against business associates and consumers .

McCord, who served as president of the Mortgage Bankers Association in 1997, pleaded guilty to five indictments in May when the pandemic peaked in June 2020.

Judges gavel

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Oklahoma Western District Court Judge Robin Cauthron sentenced McCord to 104 months in prison, followed by three years of supervised release, for his role in a credit and service fraud involving homeowners, state-sponsored Fannie Mae and others, according to one Nov 29 publications by the US Attorney's Office were harassed. Cautron found that McCord caused these companies a total loss of $ 95 million. His sentence begins on January 6, 2022.

"This was a carefully calculated scheme in which the defendant defrauded local banks of tens of millions of dollars, misrepresented a financial institution, diverted trust funds to pay homeowners' taxes and insurance premiums to cover the running of his business, and then the Proceeds laundered to finance his lavish lifestyle, "said Acting US Attorney Robert Troester. "This judgment should serve as an indication that those who defraud financial institutions for personal gain will be held accountable."

McCord, a past president of the Mortgage Bankers Association, pleaded guilty to five indictments in May when the pandemic peaked in June 2020.

Not only does the case show the magnitude of the personal punishments mortgage managers can face for fraud, it also shows the importance of strong storage loans and secondary marketing relationships to non-bank operations in the home finance business.

The charges in the case originally came from an independent investigation into more than $ 14.1 million in loans that McCord had sold to two banks. The audit found that McCord did not reimburse these banks, Spirit and Citizens State, after the mortgages were repaid through refinancing or otherwise. The two banks and their home loan subsidiaries then withdrew inventory finance that they made available to FMC.

Subsequently, in 2017, McCord began searching for a new lender to fund the company's credit pipeline and made an essentially misrepresentation and representation as part of negotiations with North Carolina-based CapLOC. The negotiations included an offer to sell FMC's lending business for financing.

McCord also admitted he had $ 1.8 billion in trust funds.

In addition to independent scrutiny and prosecution by the U.S. Attorney General, the case resulted from investigations by the Office of Inspector General of the Federal Housing Finance Agency, the OIG of the Federal Deposit Insurance Corp. and the Oklahoma City Field of the Federal Bureau of Investigations Office.

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