The nation’s largest independent home loan lender, Countrywide Financial Corp., is suing a Fishers, Indiana, man for orchestrating a mortgage fraud scheme in which dozens of Virginia residents were tricked into buying homes in Indianapolis and Westfield, Indiana, at significantly inflated prices. Countrywide alleges that Robert Penn worked with relatives in Virginia–and associates that included appraisers and mortgage companies–to defraud hundreds of homeowners.
According to the Indianapolis Star, Countrywide’s lawsuit lists 112 properties, but on Thursday, Prudential Realtors in Indianapolis put that number closer to 400. By some accounts, the Star reports, the dollar value of the loans, many of which have defaulted or are now in foreclosure, is somewhere between $40-$80 million.
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