February 25, 2007

Arizona housing bubble and mortgage fraud funder shut down by regulators, 75 offices closed, untold damage done


Eagle First was just one enabler of the biggest ponzi scheme ever to hit Arizona, which as many of you know became the flim-flam-scam-o-rama-fake-economy-state during the Late Great Housing Bubble.

This company was just one of many unregulated mortgage broker firms promoting the "cash-back" fraud, and now that politicians and the MSM in Arizona have woken up to the fact that their housing market was all a sham, you'll start seeing company shut downs, arrests, new laws and one hell of a clean up.

Arizona property prices will crash 30% to 50% over the next 36 months, I am sure of it. Their 55% 2005 bubble was a fraud, a scam and a joke. Hundreds of thousands of REIC connected jobs will disappear, the Arizona economy will be devastated, and stucco home ghost towns all over Phoenix and Tucson will emerge.

And the walls come tumbling down. The money ain't gonna get paid back. The Great Unwinding is here.

Mortgage company shut down - Mesa-based firm caught in state's fraud crackdown

Regulators have shut down Mesa-based Eagle First Mortgage and its more than 75 Valley branches, citing illegal lending practices.The Arizona Department of Financial Institutions pulled the license of the mortgage firm and its broker, David Sanchez, last week.

Regulators described more than 100 illegal money transactions, loan activities and hiring practices. The firm, one of the largest that Financial Institutions has shut down, has until March 14 to finish any outstanding loans and close its doors

A wave of mortgage fraud started spreading across the Valley last year that could cost lenders millions of dollars and erode values and confidence in Arizona's real estate market and economy. Most of the fraud is coming from cash-back deals that involve obtaining a mortgage for more than a home is worth and pocketing the extra money. But there are other types of fraud such as faking and forging documents and lying about income and other personal information for loans.

It's estimated there are as many as 18,000 unlicensed people taking mortgage applications, negotiating rates and getting loan commissions statewide.

19 comments:

Chris said...

I wanted to short Phoenix a year ago, it would be even a better short today, Phoenix is the new Enron, facts are facts, and they will be very painful.

Someone should open a fund to short residential RE in cities, I would short Phoenix, SLC, Miami, Orlando, all the usual suspects, including all of OC.

Anonymous said...

Of course you wont find this story on Greg Swann's blog

Anonymous said...

Greg Swan says it's a great time to buy. They are "not making any more land"...

Anonymous said...

The best part is most of those FB losers are arrogant liberal jagoffs from the left coast. ROFLMAO

Shakster said...

Greg Swann still has a blog?

Kfed said...
This comment has been removed by a blog administrator.
Anonymous said...

AGENTS WEAR diapers?

Really, how many adults do you know who voluntarily wear diapers? Once a human is potty-trained, we pretty much don't ever want to go back to wearing a wet, soggy thing that messes up the look of our best butt-hugging jeans.

Oh sure, some of us do go back to the diapers - it's like a circle of life. You start out in Pampers and sometimes you end on Depends. But no matter which end of the diaper you're on, nobody really likes them. There's too much "ick" factor associated with diapers. They stink, they're soggy, they produce horrible diaper rash if they aren't changed every two minutes and they clog our landfills.

But RE agents wear them. And there has to be a reason. I don't mean the old "oh, it's better for sales," or "have you seen a office bathroom?

These diapers must be super-duper, space diapers. Maybe they were created from alien diaper technology found at Roswell.

Soon, everyone's going to want them.

trashwacker said...

Just a staggering amount of realty-mortgage brokerage scum in Phoenix...they all need to be jailed doing hard time and taking showers with buff, sweaty and horny weight-lifting gangstas.

Anonymous said...

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Anonymous said...

1940 Swallowing Goldfish - A fad that was very popular among college students and drew crowds of spectators who wanted to witness this.

2007 Swallowing you pride and a large loan, drew crowds of spectators who wanted to witness this.

karrmotorsports said...

Curse that "Dirty Sanchez"

sunnyday said...

so when are they (regulators) going to drive to Colorado, the home of the smuggled mexican nationals. I have read that mexicans were put into new homes with fraudulent incomes. They were housekeepers but the mortgage companies said they were medical assistants. This is how Hispanics were helping their people become apart of the American society. Giving them a false illusion of quick wealth. Home ownership and a foot hold on politics. Unfortunately most immigrants don't understand this process can not be accomplished in a year or two but years. Just as every American has had to pay dues to live in this country, the streets are not paved in gold, it is not the land of overnight milk and honey. Americans work hard to get what they have (or at least I did) and I had to have perfect credit for everything that I ever had no one cheated on any paperwork and fudged numbers for me. I have no sympathy for people who agree to go for these schemes and back door under the table deals. Including Americans, let's face it, IF IT SOUNDS TO GOOD TO BE TRUE IS USUALLY ISN'T. So if the asinine Americans and newly here immigrants think that they can circumvent the 20% down 30 year fixed income ratio they are getting exactly what they deserve. Pitty the people who worked hard and will have to endure the same economic downfall (to a certain degree) as these bone heads.

Frank said...

Good, I'm glad to see the house of cards crashing down hard in Phoenix, because if one more homedebtor jerk tells me that his house is going to triple in value in the next 1-2 years, I swear my head is going to explode.

I know someone who has a house worth about a million right now in Scottsdale, and the other day he told me "We're going to sell it in about a year when it's worth $3 million" - and he said this with a STRAIGHT FACE!

At least in Newport Beach where I'm moving in about 2 weeks, the house of cards is already collapsing and everyone has realized that the game is over and houses have nowhere to go but down. Even homedebtors are finally admitting it out there.

Anonymous said...

You won't find it on Swann's blog because those are his hands in the cuffs.

Anonymous said...

greg swann could be going in a jail cell with
big bubba the man molester
man i bet there checking those
loan forms close
no one will get a mortgage now
oh boy its all bad
never mind a falling knife
time to line up and try to catch a bullet in your teeth

boy this is bad
house of cards ponzi scam game is done

Anonymous said...

It's the outlandish fraud that infected the US housing market that makes me scared to buy until things correct by at least 40%.

There was way too much fraud involved in this housing market. We really have no idea what the past 8 years of housing prices would have looked like without it.

Anonymous said...

dont be surprised if there's no gas at the station tomorrow
all peoples working in real estate are fleeing state lines
thousands and thousands are fleeing

Anonymous said...

50% are you kidding
this fraud and theft is going so deep
50% absolute minimum in less then 18 months
ghost town

Anonymous said...

until God turns off the sun, there will always be people wanting to live in Phx (at least 9 months / year)

What there will no longer be is masses of people who see personal residence house debt as the way to financial genius and retirement funding (I hope anyway)

In the meantime, for the love of all that is good, let's all watch and LEARN!