HUD Debars Mortgage Loan Officers, Title Agent

""HUD"":http://portal.hud.gov/hudportal/HUD signed off on debarment Monday for three South Florida loan officers and a Pittsburgh title agent following convictions that found the four had reaped $2.5 million in reverse mortgage fraud.

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In a statement, the federal agency said that juries of their peers convicted loan officers Marcos Echevarria, Louis Gendason, and John Incandela for their roles in systematically identifying, then pressuring elderly homeowners to trade up their home loans for reverse mortgages.

The three reportedly also committed appraisal fraud by exaggerating values for the properties to seize more funds.

Title agent Kimberly Mackey also received a conviction for the part she played in fraudulently closing the loans by scrimping on payment for the homeowners' existing mortgages.

""HUD will not tolerate those who abuse the mortgage system and target elderly borrowers for their personal gain,"" HUD Secretary ""Shaun Donovan"":http://portal.hud.gov/hudportal/HUD?src=/about/hud_secretary said in the statement. ""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.""

The four will need to make restitution accordingly.