Tuesday, July 24, 2012

S. Korea eases curbs to bolster property market - DropJack


South Korea announced steps Thursday to bolster its sagging property market, including easing restrictions imposed on some districts of the capital. 

Seoul in 2003 restricted mortgage loan-to-value ratios to 40 percent and banned buyers from spending more than 40 percent of their income on repayments in three southern Seoul areas seen as most attractive to speculators. 
From now on, the same rules will apply citywide, with buyers able to borrow up to 50 percent of a property's value and spend up to 50 percent of their income on repayments. 

House prices in the Seoul metropolitan area have been falling for 10 successive months, with the latest April reading showing a 0.3 percent month-on-month decline. 

The government said it would also cut taxes on capital gains from property in the three districts, and would offer low-interest loans to a wider range of potential home-buyers in the capital. 

"We're rolling back excessive regulations adopted back in the early 2000s when the property market was overheating," the land ministry said in a statement. 

"Despite an increase in home supply... transactions in the housing sector are shrinking, while new apartment sales are also sluggish, hit by (economic) uncertainties." 

Mortgage Fraud - DropJack


Mortgage fraud is crime in which the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known the truth.

In United States federal courts, mortgage fraud is prosecuted as wire fraud, bank fraud, mail fraud and money laundering, with penalties of up to thirty years imprisonment.As the incidence of mortgage fraud has risen over the past few years, states have also begun to enact their own penalties for mortgage fraud.

Mortgage fraud is not to be confused with predatory mortgage lending, which occurs when a consumer is misled or deceived by agents of the lender. However, predatory lending practices often co-exist with mortgage fraud.

Occupancy fraud: This occurs where the borrower wishes to obtain a mortgage to acquire an investment property, but states on the loan application that the borrower will occupy the property as the primary residence or as a second home. If undetected, the borrower typically obtains a lower interest rate than was warranted. Because lenders typically charge a higher interest rate for non-owner-occupied properties, which historically have higher delinquency rates, the lender receives insufficient return on capital and is over-exposed to loss relative to what was expected in the transaction. In addition, lenders allow larger loans on owner-occupied homes compared to loans for investment properties. When occupancy fraud occurs, it is likely that taxes on gains are not paid, resulting in additional fraud. It is considered fraud because the borrower has materially misprepresented the risk to the lender to obtain more favorable loan terms.

Income fraud: This occurs when a borrower overstates his/her income to qualify for a mortgage or for a larger loan amount. This was most often seen with so-called "stated income" mortgage loans (popularly referred to as "liar loans"), where the borrower, or a loan officer acting for a borrower with or without the borrower's knowledge, stated without verification the income needed to qualify for the loan. Because mortgage lenders have begun to tighten underwriting standards and "stated income" loans are less available, income fraud is increasingly seen in traditional full-documentation loans where the borrower forges or alters an employer-issued Form W-2, tax returns and/or bank account records to provide support for the inflated income. It is considered fraud because in most cases the borrower would not have qualified for the loan had the true income been disclosed. The "mortgage meltdown" was caused, in part, when large numbers of borrowers in areas of rapidly increasing home prices lied about their income, acquired homes they could not afford, and then defaulted.

Employment fraud: This occurs when a borrower claims self-employment in a non-existent company or claims a higher position (e.g., manager) in a real company, to provide justification for a fraudulent representation of the borrower's income.

Failure to disclose liabilities: Borrowers may conceal obligations, such as mortgage loans on other properties or newly acquired credit card debt, to reduce the amount of monthly debt declared on the loan application. This omission of liabilities artificially lowers the debt-to-income ratio, which is a key underwriting criterion used to determine eligibility for most mortgage loans. It is considered fraud because it allows the borrower to qualify for a loan which otherwise would not have been granted, or to qualify for a bigger loan than what would have been granted had the borrower's true debt been disclosed.

Fraud for profit: A complex scheme involving multiple parties, including mortgage lending professionals, in a financially motivated attempt to defraud the lender of large sums of money. Fraud for profit schemes frequently include a straw borrower whose credit report is used, a dishonest appraiser who intentionally and significantly overstates the value of the subject property, a dishonest settlement agent who might prepare two sets of HUD settlement statements or makes disbursements from loan proceeds which are not disclosed on the settlement statement, and a property owner, all in a coordinated attempt to obtain an inappropriately large loan. The parties involved share the ill-gotten gains and the mortgage eventually goes into default. In other cases, naive "investors" are lured into the scheme with the organizer's promise that the home will be repaired, repairs and/or renovations will be made, tenants will located, rents will be collected, mortgage payments made and profits will be split upon sale of the property, all without the active participation of the straw buyer. Once the loan is closed, the organizer disappears, no repairs are made nor renters found, and the "investor" is liable for paying the mortgage on a property that is not worth what is owed, leaving the "investor" financially ruined. If undetected, a bank may lend hundreds of thousands of dollars against a property that is actually worth far less and in large schemes with multiple transactions, banks may lend millions more than the properties are worth. The Robert Douglas Hartmann case is a notable example of this type of scheme.

Appraisal fraud: Occurs when a home's appraised value is deliberately overstated or understated. When overstated, more money can be obtained by the borrower in the form of a cash-out refinance, by the seller in a purchase transaction, or by the organizers of a for-profit mortgage fraud scheme. Appraisal fraud also includes cases where the home's value is deliberately understated to get a lower price on a foreclosed home, or in a fraudulent attempt to induce a lender to decrease the amount owed on the mortgage in a loan modification. A dishonest appraiser may be involved in the preparation of the fraudulent appraisal, or an existing and accurate appraisal may be altered by someone with knowledge of graphic editing tools such as Adobe Photoshop.

Cash-back schemes: Occur where the true price of a property is illegally inflated to provide cash-back to transaction participants, most often the borrowers, who receive a "rebate" which is not disclosed to the lender. As a result the lender lends too much, and the buyer pockets the overage or splits it with other participants, including the seller or the real estate agent. This scheme requires appraisal fraud to deceive the lender. "Get Rich Quick" real-estate gurus' courses frequently rely heavily on this mechanism for profitability.

Shotgunning: Occurs when multiple loans for the same home are obtained simultaneously for a total amount greatly in excess of the actual value of the property. These schemes leave lenders exposed to large losses because the subsequent mortgages are junior to the first mortgage to be recorded and the property value is insufficient for the subsequent lenders to collect against the property in foreclosure. The Matthew Cox and Robert Douglas Hartmann cases are the most notable example of this type of scheme.

Working the gap: A technique which entails the excessive lien stacking knowingly executed on a specific property within an inordinately narrow timeframe, via the serial recording of multiple Deeds of Trust or Assignments of Note. When recording a legal document in the United States of America, a time gap exists between when the Deed of Trust is submitted to the Recorder of Deeds & when it actually shows up in the data. The precision timing technique of "working the gap" between the recording of a deed & its subsequent appearance in the recorder of deeds database is instrumental in propagating the perpetrator's deception. A title search done by any lender immediately prior to the respective loan, promissory note, & deed recording would thus erroneously fail to show the alternate liens concurrently in the queue. The goal of the perpetrator is the theft of funds from each lender by deceit, with all lenders simultaneously & erroneously believing their respective Deeds of Trust to be senior in position, when in actuality there can be only one. White-collar criminals who utilize this technique will frequently claim innocence based on clerical errors, bad record keeping, or other smokescreen excuses in an attempt to obfuscate the true coordination & intent inherent in this version of mortgage fraud. This "gaming" or exploitation of a structural weakness in the US legal system is a critical precursor to "shotgunning" and considered white-collar crime when implemented in a systemic fashion.

Identity theft: Occurs when a person assumes the identity of another and uses that identity to obtain a mortgage without the knowledge or consent of the victim. In these schemes, the thieves disappear without making payments on the mortgage. The schemes are usually not discovered until the lender tries to collect from the victim, who may incur substantial costs trying to prove the theft of his/her identity.

Falsification of loan applications without the knowledge of the borrower : The loan applications are falsified with out the knowledge of the borrower when the borrower actually will not qualify for a loan for various reasons. for example parties involved will make a commission out of the transaction. The business happens only if the loan application is falsified. For example borrower applies for a loan stating monthly income of $2000 (but with this income $2000 per month the borrower will not qualify), however the broker or loan officer falsified the income documents and loan application that borrower earns a monthly income of $15,000. The loan gets approved the broker/loan officer etc. gets their commission. But the borrower struggles to repay the loan and defaults the loan eventually.

Other background

Mortgage fraud by borrowers from US Department of the Treasury
Mortgage fraud may be perpetrated by one or more participants in a loan transaction, including the borrower; a loan officer who originates the mortgage; a real estate agent, appraiser, a title or escrow representative or attorney; or by multiple parties as in the example of the fraud ring described above. Dishonest and unreputable stakeholders may encourage and assist borrowers in committing fraud because most participants are typically compensated only when a transaction closes.

During 2003 The Money Programme of the BBC in the UK uncovered systemic mortgage fraud throughout HBOS. The Money Programme found that during the investigation brokers advised the undercover researchers to lie on applications for self-certified mortgages from, among others, The Royal Bank of Scotland, The Mortgage Business and Birmingham Midshires Building Society.

In 2004, the FBI warned that mortgage fraud was becoming so rampant that the resulting "epidemic" of crimes could trigger a massive financial crisis. According to a December 2005 press release from the FBI, "mortgage fraud is one of the fastest growing white collar crimes in the United States".

The number of FBI agents assigned to mortgage-related crimes increased by 50 percent between 2007 and 2008.[8] In June 2008, The FBI stated that its mortgage fraud caseload has doubled in the past three years to more than 1,400 pending cases.Between 1 March and 18 June 2008, 406 people were arrested for mortgage fraud in an FBI sting across the country. People arrested include buyers, sellers and others across the wide-ranging mortgage industry.

Fraud Enforcement and Recovery Act of 2009
In May 2009, the Fraud Enforcement and Recovery Act of 2009, or FERA, Pub.L. 111-21, 123 Stat. 1617, S. 386, public law in the United States, was enacted. The law takes a number of steps ([1]) to enhance criminal enforcement of federal fraud laws, especially regarding financial institutions, mortgage fraud, and securities fraud or commodities fraud.

Significant to note, Section 3 of the Act authorized additional funding to detect and prosecute fraud at various federal agencies, specifically:

$165,000,000 to the Department of Justice,
$30,000,000 each to the Postal Inspection Service and the Office of the Inspector General at the United States Department of Housing and Urban Development (HUD/OIG)
$20,000,000 to the Secret Service
$21,000,000 to the Securities and Exchange Commission
These authorizations were made for the federal fiscal years beginning October 1, 2009 and 2010, after which point they expire, and are in addition to the previously authorized budgets for these agencies. 

Home loans scheme | Livejournal : A Jetpak created by melissarocks : Jeteye

Home loans scheme | Livejournal : A Jetpak created by melissarocks : Jeteye

Money Matters - Managing your Finances as an Ex-pat in Korea! | Livejournal - The-looser-it-s-me

Money Matters - Managing your Finances as an Ex-pat in Korea! | Livejournal - The-looser-it-s-me

Home loans scheme | Livejournal - The-looser-it-s-me

Home loans scheme | Livejournal - The-looser-it-s-me

Springhill Group: south korea group of springhill: Money Matters - Managing your Finances as an Ex-pa...

Springhill Group: south korea group of springhill: Money Matters - Managing your Finances as an Ex-pa...: http://ambersanpedro.livejournal.com/6733.html Two years ago, when I started toying with the idea of  coming to Korea to teach English , ...

Money Matters - Managing your Finances as an Ex-pat in Korea! | Livejournal


Tip #5: ATMs and Banking Assistants: One of the most surprising and helpful things about Korea is that it is English-friendly. Nearly every ATM has an "English Option" and most bank tellers will speak at least some English (enough to converse with you about making deposits, transfers, or other basic banking operations). Once you arrive at your school in Korea, the school's Korean staff will most likely set you up with a bank account and bank card. As such, access to your Korean funds will be simple and immediate.
To wrap it up, Korea has an efficient and English-friendly banking system that allows you to be comfortable and confident while managing your finances abroad. Just follow the above tips so that they can show you the money! Cheers!
After receiving her degree in Secondary English Education from Indiana University, Hope Gately wanted to experience Korea's famous educational system, which is currently ranked #2 worldwide. She began teaching at the Pohang-Namgu branch of ChungDahm Learning in Korea last year, after being recruited by Aclipse. Since Hope is an avid hiker, foodie, and fashion enthusiast, she loves living in Korea and enjoys the mountains, cuisine, and "Kill-Heels." Questions about teaching in Korea? Follow Hope on Twitter at www.twitter.com/AclipseHope and email her at Aclipsehope@gmail.com!

Springhill Group: south korea group of springhill: Home loans scheme | Livejournal

Springhill Group: south korea group of springhill: Home loans scheme | Livejournal: http://ambersanpedro.livejournal.com/6495.html If you live in a Universal Home Insulation Scheme (UHIS) area in Scotland you could benefit...

Home loans scheme | Livejournal


Tuesday, July 17, 2012

SPRINGHILL GROUP-Loan Scam | YousayToo


SPRINGHILL GROUP-Loan Scam | YousayToo
My degree is in English Teaching/Secondary Education, but to put myself through college I worked as a bank loan officer for 7 years. This stuff pains me to see. Not only is it an obvious scam, but no bank officer would last long doing business like this.
SPRINGHILL GROUP-Loan Scam yousaytoo.com
http://www.scamwarners.com/forum/viewtopic.php?f=7&t=714&p=3199Loan Scamby Pinky on Sat Apr 19, 2008 10:16 am...

News Center – Springhill Group Home Loans: Tips For Home Employment To Avoid Work-At-Home Scams ---Prezi


1. You must know the person you are dealing with. Most company that hires employee do not offer to employ you directly, just to sell you training and materials and to look for customers for your work.


from: http://prezi.com/3u-_ikyc8g3u/news-center-springhill-group-home-loans/

1. You must know the person you are dealing with. Most company that hires employee do not offer to employ you directly, just to sell you training and materials and to look for customers for your work.

Monday, July 9, 2012

South Korea Springhill Group - [Editorial] Insurance fraud


The insurance fraud in Changwon uncovered by the Financial Supervisory Service is both shocking and disturbing. It involved as many as 1,361 people, mostly residents of the South Gyeongsang Province city, who either posed as fake patients or exaggerated their illnesses. Collectively, they claimed 9.5 billion won from 33 insurance companies between 2007 and 2011.

At the center of the scam 
 the largest ever in terms of the number of people involved  were three unconscionable hospitals in the city, which recruited fake patients systematically in cahoots with insurance brokers and solicitors. They did this to increase revenue and ease their financial distress.

The main ploy used by the hospitals was to share a patient, meaning they would arrange for a patient to check in the three hospitals alternately for a different disease. For this, they faked his illnesses and prepared false documents. For close cooperation, they shared patient information among themselves.

This scheme helped patients pocket more insurance money. They all purchased multiple private health insurance policies before hospitalization. On average they received some 7 million won per person. In one example, a man in his 50s was hospitalized for a total of 564 days over three years, collecting 95 million won in insurance.

The Changwon case followed a similar one that took place in Taebaek last November, involving more than 400 people in the declining mining town in Gangwon Province. They got a total of 14 billion won in insurance payments. As with the Changwon scam, three financially distressed hospitals in the city played a central role. 

The two cases suggest that insurance fraud is a fairly common occurrence in Korea. According to the FSS, the number of insurance-related crimes has surged in recent years. Last year alone, more than 70,000 people were caught for insurance scams, with the amount of false claims they filed reaching 423 billion won.

Yet the figure represented just the tip of the iceberg. A study by the Korea Insurance Research Institute estimated that domestic insurance companies paid a total of 3.4 trillion won to fraudsters in 2010, up 53 percent from 2006. 

The figure accounts for 12.5 percent of the entire sum insurance companies paid to their customers in that year. According to the institute, these false claims had the effect of increasing annual insurance premiums by 70,000 won per person or 200,000 won per household on average.

Health insurance scams inflict damage not only on private insurers but on the National Health Insurance, which is jointly funded by taxpayers, corporations and the government. As insurance fraud increases health care costs, the government needs to crack down on fraudsters. 

Yet the problem is that fraud rings employ increasingly sophisticated schemes to beat insurance companies and regulators. For instance, people involved in the Changwon case limited their hospital stay to less than two weeks as a longer one would be scrutinized by the National Health Insurance Corp.

To fight insurance fraud, insurance companies need to be more aggressive in handling suspicious claims. When they encounter questionable claims, they should investigate them. But they often choose to pay the claims and transfer the costs to customers as doing so is cheaper and more convenient. 

The NHIC and the FSS are also required to enhance their skills to analyze suspicious claims and beef up their investigation manpower. But these measures alone would not be enough to curb the rising trend of insurance scams.

A more fundamental solution would be to enact a special law, as in many other countries, to deal with insurance fraud differently from fraud of other types. In fact, the FSS has already submitted a bill to toughen punishment for insurance fraud. But lawmakers have not acted on it for years.

The bill calls for canceling the licenses of insurance agents and slapping doctors and hospitals with heavier penalties when they are found to have been involved in a scam. It also proposes to grant insurance companies a limited right to investigate suspicious claims. 

Along with these steps, the government will have to find measures to ease the financial hardship of many hospitals in provincial cities. These hospitals are in trouble as patients in their cities prefer big, well-known hospitals in Seoul. If local hospitals put up the shutters, the nation’s entire health care delivery system would be crippled.

Springhill: New Study Reveals Significant Healthcare System Costs Associated with Meningococcal Disease


BUENOS AIRES, Argentina, March 20, 2012 /PRNewswire via COMTEX/ — Researchers find high incidence rates and deaths in first-ever analysis of the disease impacts in Latin America

Today, Latin American researchers and global health leaders revealed preliminary results from the first-ever study to estimate the burden and costs of meningococcal disease in the region. The study found a need for improved surveillance and better understanding of meningococcal epidemiology and information on costs to help devise meningitis vaccination programs.

This new research was coordinated by the Sabin Vaccine Institute in partnership with the Pan American Health Organization (PAHO), the International Vaccine Access Center at Johns Hopkins University (JHU’s IVAC) and the Centers for Disease Control and Prevention (CDC).
Dr. Ciro de Quadros, Executive Vice President of the Sabin Vaccine Institute in Washington, D.C., said, “Clearly, meningitis is a real health and economic burden in Latin America. Too many children are debilitated or die from this serious disease, yet it is preventable by vaccines. Our new research proves that we need to improve our strategies to fight meningococcal disease.”

Dr. de Quadros spoke at the conclusion of the first Regional Meningococcal Symposium, convened by the Sabin Vaccine Institute and the Pan American Health Organization (PAHO), Regional Office of the World Health Organization (WHO). The symposium, which took place March 19 and 20 in Buenos Aires, brought together more than 150 researchers, vaccine experts, economists and others to evaluate the extent and cost of meningococcal disease and what obstacles impede its prevention through vaccination.

“Few diseases have as much power to cause panic among the population as meningococcal disease, said Dr. Marco Aurelio Safadi, Head of the Pediatric Infectious Disease Division at Sao Luiz Hospital in Sao Paulo, Brazil. “This is primarily because of its potentially epidemic nature. The rapid onset and high case fatality rates (10 – 20 percent), combined with substantial morbidity compound its health and economic impact. Our study notes that up to 20 percent of meningococcal disease survivors develop permanent disabilities including deafness, neurological deficit or limb amputation–only adding to the long-term economic impact of an outbreak.”

The new research suggests healthcare costs associated with meningococcal diseases range from $4,500 to $6,500 (USD) per patient, and costs of controlling outbreaks have reached more than $3 million (USD) in some regions.

“The economic impact can vary widely across countries in the region,” explained Dr. Dagna Constenla of the International Vaccine Access Center at Johns Hopkins University Bloomberg School of Public Health. “However, what is clear from our research is that meningococcal disease has significant costs for society and governments.”

For example, one Florida community that reported seven confirmed meningococcal cases and vaccinated 13,000 persons spent $370,000 (USD) in intervention and management costs, or $53,000 (USD) per case. In Brazil, one community had a meningitis outbreak causing nine cases and spent $143,000 (USD) on investigation and outbreak management alone.
But the figures are much higher in large outbreaks. In 2007, Burkina Faso was hit with 25,000 cases of meningococcal disease and 1,700 related deaths, which resulted in direct costs of $3.5 million (USD), or 5 percent of its annual health expenditures. Costs of recent outbreaks in Oklahoma, Ohio, Brazil, Norway and Germany are largely unknown, the study said.

High incidence rates of meningococcal disease were reported in the countries with well-established disease surveillance systems including Argentina, Brazil, Chile and Uruguay, but low incidence rates were consistently reported in Mexico, Central America and the Caribbean.

“Given that we do not have a clear picture of the burden of this disease in Latin America, and we lack information on circulating serogroups, we have to further strengthen our epidemiological surveillance of this disease. Based on that information, we will generate the studies of epidemiology, cost-effectiveness, and opportunity costs needed to make evidence-based decisions in our Region,” explained Dr. Cuauhtemoc Ruiz Matus, Coordinator of Comprehensive Family Immunization at PAHO.

Meningococcal meningitis, which infects the membranes of the brain and spinal cord, is a debilitating and potentially fatal disease that most severely affects children, adolescents and people living in overcrowded housing. In the Americas, it is most common in infants under 1 year of age. While the incidence of meningococcal disease varies widely among countries and over time, in recent years case fatality rates as high as 15 to 20 percent have been reported in several countries in Latin America and the Caribbean, the study noted.

The WHO estimates that 500,000 cases and 50,000 deaths of meningococcal disease occur annually worldwide. The new study concluded that more and better information is needed to help control outbreaks.
More information also is needed to devise vaccine programs, the study said: “Consideration of vaccination strategies to control meningococcal disease can only be made with a sufficient understanding of the changing epidemiology of meningococcal disease.”

Currently, the only countries with routine immunization programs for meningococcal disease are Cuba and Brazil, though other countries are studying the options.

The two-day meeting where the study was presented featured sessions by global experts on the epidemiology of meningococcal disease, clinical presentation and treatment of the disease, cost analysis, immunity and meningococcal vaccines, and new strategies to prevent Meningitis B disease.
For meeting details, visit www.mening2012.org ; to learn more about the Sabin Vaccine Institute, visit http://www.sabin.org ; to learn more about PAHO, visit www.paho.org

About Sabin Vaccine Institute Sabin Vaccine Institute is a non-profit, 501(c)(3) organization of scientists, researchers, and advocates dedicated to reducing needless human suffering caused by vaccine preventable and neglected tropical diseases. Sabin works with governments, leading public and private organizations, and academic institutions to provide solutions for some of the world’s most pervasive health challenges. Since its founding in 1993 in honor of the oral polio vaccine developer, Dr. Albert B. Sabin, the Institute has been at the forefront of efforts to control, treat, and eliminate these diseases by developing new vaccines, advocating use of existing vaccines, and promoting increased access to affordable medical treatments. For more information please visit www.sabin.org .

About the Pan America Health OrganizationThe Pan American Health Organization (PAHO) is an international public health agency with more than 100 years of experience in working to improve health and living standards of the countries of the Americas. It serves as the specialized organization for health of the Inter-American System. It also serves as the Regional Office for the Americas of the World Health Organization and enjoys international recognition as part of the United Nations system.