'Fluffing' loan info leads to guilty plea for fraud - Hawaii News

Full story: Honolulu Star-Bulletin

Sierra Hethcote said she thought she was helping a single mother with four children when she signed loan applications that contained false information to purchase the woman's Mililani home.

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Keeeeee

Kennett, MO

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#1
May 17, 2009
 

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"The applications said she earned $20,000 per month?"

A single mother earning $20,000 per month and is desperate for help? Fluffy man, fluffy.

Hethcote never intended to live in the home or pay off the mortgage. She received a fee of between $12,000 and $15,000.

There is greed all over this and you wonder why the Hawaii like the mainland so screwed up?
GetFluffed

Royal Oak, MI

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#2
May 17, 2009
 

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"I guess that was fluffing it," she said.
There's more than 1 way to get fluffed!!!!!
duhh

Napa, CA

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#3
May 17, 2009
 

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Know who made out the most in this deal?? The Bank!Probably tacked on 50 to 80 Grand in fees and closing costs in the deal. Then cried foul! Wanting more=Pure Greed.P;us they got the property in the deal!!How come no charges for them ?? They the real crooks.
Wacko

Wahiawa, HI

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#4
May 17, 2009
 

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Prosecute these individuals and sentence them to the maximum allowed by Law. Further have their photos posted for all to see.

Investigate and prosecute any and all people associated with this scam. These actions are necessary to stop future scams that are occuring now and in the futuree.
isleboi

Houston, TX

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#5
May 17, 2009
 

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duhh wrote:
Know who made out the most in this deal?? The Bank!Probably tacked on 50 to 80 Grand in fees and closing costs in the deal. Then cried foul! Wanting more=Pure Greed.P;us they got the property in the deal!!How come no charges for them ?? They the real crooks.
If there is credible proof to your theory, produce it. At this point you are speaking out of ignorance!
lohi

Houston, TX

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#6
May 17, 2009
 

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"Sierra Hethcote said she thought she was helping a single mother with four children when she signed loan applications that contained false information to purchase the woman's Mililani home." Ms. Hethcote statement is BUNK pure and simple. As a business insider, Ms. Hethcote, a loan processor should have been familiar with the term strawbuyer and how the ploy works. A vital function of a loan processor is the frontline person to identify fraud. Ms. Hethcot, instead she became a party to the ploy only to enrich her pocketbook. She will now face the penalty for her misdeed as will the others involved in this fraud.
kilu

Honolulu, HI

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#7
May 17, 2009
 

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This is just the tip of the iceberg. More investigative reporting please. How did some of these people qualify for loans in the first place? How did some people acquire their homes or lands especially the immigrants, legal or illegal? How did the Hawaiian get iced out and they ended up getting a piece of the aina? You want to increase readership then do some actual reporting and inform the people about the real homeless situation. Nuff said!
Loan Officer

Honolulu, HI

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#9
May 17, 2009
 
Keeeeee wrote:
"The applications said she earned $20,000 per month?"
A single mother earning $20,000 per month and is desperate for help? Fluffy man, fluffy.
Hethcote never intended to live in the home or pay off the mortgage. She received a fee of between $12,000 and $15,000.
There is greed all over this and you wonder why the Hawaii like the mainland so screwed up?
According to the article, Hethcote, loan processor, reported earning $20,000 per month to purchase the home of the single mother.
localboi

Kaneohe, HI

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#10
May 17, 2009
 
<<"It was just to help them out and I lost everything," she said.... She received a fee of between $12,000 and $15,000.>>

Give me $12G and I'll "help" you, too! How many other families did she help?
localboi

Kaneohe, HI

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#11
May 17, 2009
 

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Loan Officer wrote:
<quoted text>
According to the article, Hethcote, loan processor, reported earning $20,000 per month to purchase the home of the single mother.
"The applications said she earned $20,000 per month." She who? Just more shoddy writing by the Star-Bulletin staff....
Schemmer

Kailua Kona, HI

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#12
May 17, 2009
 

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Ha! just figure, how nany out there mortagage company that there worker doing under the table deals, to make up what a loosing housing sale, just to earn money any witch way they can tax free. to all banker loaner I earn 1900.00 a month pandhandling on the stree live on free rent condo in waikiki surf all days sleep most of the afternoon and sigle get bank acount too. and welfare food stamp, get state medical and car insurance, so I want my own mansion anyone bank out there take my application, in return you get my life insurance policy of 2.5 mill in exchange hows that for collecteral for loan. whos the taker.
buyer

United States

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#13
May 17, 2009
 

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There are more fluffers out there that need to be caught........the DA office should do audits at all real estate offices!

Also the mother should have known this and share in the consequences for lying!

Just like the guy who beat a guy to death for pissing in his truck.

there are more responsible ways for every action!
Von

Aiea, HI

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#14
May 17, 2009
 
localboi wrote:
<quoted text>
"The applications said she earned $20,000 per month." She who? Just more shoddy writing by the Star-Bulletin staff....
Yes that is what I want to know also?

I'll be right over to help.
buyer

United States

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#15
May 17, 2009
 
her identity should be made known!
buyer

United States

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#16
May 17, 2009
 

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She signed the application she is held accountable!

Or does losing her house make lying okay?
A-OH

Gloucester, MA

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#17
May 17, 2009
 

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localboi wrote:
<quoted text>
"The applications said she earned $20,000 per month." She who? Just more shoddy writing by the Star-Bulletin staff....
Agreed. The article reads as if it is Ms. Hethcote who planned and perpetrated the fraud. It is not until the final paragraphs of the story where it is made clear that she plead guilty as part of an agreement to testify against the other defendants.

What was the straw deal here? It seems Ms. H agreed to buy the house for a fee, but we don't know how she was going to pay the over $550k mortgage that followed. What was the plan to pay off the mortgage? Did she think she was going to flip the house? What happened to the purchase money? Was there really a single mother seller, or was the seller a fiction? Who approached her to participate in the scheme? Why did they do it? Were the participants caught behind their own trades? How widespread was the abuse? Who was the primary lender? What is their reaction? How does this case fit into the general pattern of the real estate bubble?

Why does the S-B leave such large gaps in a main story? Why is this story so devoid of context - lacking in plot? Surely we deserve better reporting.
A-OH

United States

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#18
May 17, 2009
 

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buyer wrote:
There are more fluffers out there that need to be caught........the DA office should do audits at all real estate offices!
Also the mother should have known this and share in the consequences for lying!
Just like the guy who beat a guy to death for **** in his truck.
there are more responsible ways for every action!
The SB reports this was a federal case. Why isn't the DA involved? Where are the local authorities in all of this?
A-OH

United States

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#19
May 17, 2009
 

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buyer wrote:
There are more fluffers out there that need to be caught........the DA office should do audits at all real estate offices!
Also the mother should have known this and share in the consequences for lying!
Just like the guy who beat a guy to death for **** in his truck.
there are more responsible ways for every action!
The SB reports the defendant was told it was a single mother. We don't know, and if the reporter asked we are not told, whether there really was a single mother. It could be that Ms. Hethcote was pressured by her employer to participate in a fraud or lose her job. It could be that her employer really owned the house, or more likely a relative, and that the loan proceeds were really going back to the employer through the relative.

$15,000 on a $550,000 loan is about 2.5% of the total loan. I wonder if this was more than just "fluffing" incomes to increase fees. Assuming Ms. Hethcote got 10% of the profit for her part in the scam, then the total amount divided on the home would be about $150,000 - which is far outside of the possible range of fees a lender could charge to make the loan. Who actually got the other $135,000 - or whatever the bulk of the payout was - on this sale? We don't know. Did the reporter forget to ask? Shouldn't someone at the SB be reminded to follow the money?
A-OH

United States

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#20
May 17, 2009
 
buyer wrote:
She signed the application she is held accountable!
Or does losing her house make lying okay?
Did she lose everything in the deal? As borrower, was the loan recourse to her, or was the lender's only recourse to the property (or a nonrecourse loan). If nonrecourse, it looks like the scam may have been to process the loan, take the fee, and then let the lender repossess the house.

I'd bet her $12k to $15k cut was peanuts to whoever sold her the property. I wonder if this sale occurred right before the housing bubble burst. I'd bet the lender found it self with a repossessed house at a FMV much less than $550k that it could not sell, and the lender's enquiry into the sale - and the relatedness of the mortgage broker to the buyer - raised a smell they could not ignore.
Tagger

United States

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#21
May 17, 2009
 

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Smells fishy.........all lenders who fudged incomes should be held accountable.

WE THE TAXPAYERS HAVE LOST ENOUGHT to these GREEDY INDIVIDUALS!

Let us rise against the evil!

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