SEC Fines First Mortgage $12.7M, Bans 6 Execs for Defrauding Ginnie Mae Investors

HousingWire, May 31, 2016–Lane, Ben

Several senior executives at First Mortgage Corporation lied about the performance of the mortgages the company originated so they could pull the mortgages out of mortgage-backed securities guaranteed by Ginnie Mae,then turn right back around and sell the mortgages back into new mortgage bonds, defrauding investors out of $7.5 million, the Securities and Exchange Commission said Tuesday.