Woman Charged With New Reverse Mortgage Fraud

201004161412.jpgJackson County prosecutors charged Marilyn James, 55, in connection with a reverse mortgage scam on Thursday said KCTV5 News.

During a press conference, Jackson County Prosecutor Jim Kanatzar said the woman inherited a house and instead of selling it, used the personal information of her elderly neighbor, transferred the property to his name and then took out more than $60,000 in a reverse mortgage without his knowledge.

Investigators discovered the issue while investigating James for allegedly stealing thousands of dollars from her neighbors’ life insurance fund.

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“It’s a new type of fraud, one you haven’t seen before because this is a new program,” Kanatzar said. “I hope I’m wrong, I hope we don’t see many more of these cases but I suspect we will. I hope these charges will be a deterrent to those thinking about exploiting our elderly in this way.”

KCTV5 said the scam is so new that only two people in the nation have been charged with it. To see a video click here.

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  • Sad to say a face to face meeting with the originator probably would have prevented this scheme. The accused is a woman and the victim, a man. This is most likely in a metropolitan area or nearby where a face to face meeting could have taken place in all likelihood. What is strange is that the woman might have been better off selling the property.

    Recently I took over a loan for someone in our firm who was over 1800 miles away from the borrower. As I got into the promises being made, etc., it was clear that the originator who was handling the situation was attempting to create real estate transactions that require a real estate license which he did not hold.

    Odd things happen when out of state originators are handling mortgages. Sometimes even illegal things occur when originators do not visibly and physically get involved in the origination process with the borrower.

    Of course, one then wonders how counseling safeguards were overcome.

      • If a face-to-face meeting was had, we'd be hearing charges against the RM company too. I would've hoped in person a loan officer would realize he was seeing a woman not a man.

  • I would like to know which Title Insurance company issued the policy and who actually notarized the mortgage. Looks like multiple breakdowns in the process. Truly amazing.

  • Critic made alot of good points but it seems like this was a reverse scam. It looks like this moron scammed herself. Why didn't she just sell it? I'm sure she could have gotten more than 60K.
    Unfortunately people will just remember the words Reverse Mortgage scam!

  • Rainmand, you make it sound so simple. This was a felony. “Free house” sounds so flippant. The deed will be voided abd the lender has been victimized.

    Further, in this market the valuation likely went underwater ten minutes after closing. So when the lender tries to recover, they will be at the mercy of this economy.

  • I would like to know which Title Insurance company issued the policy and who actually notarized the mortgage. Looks like multiple breakdowns in the process. Truly amazing.

  • Critic made alot of good points but it seems like this was a reverse scam. It looks like this moron scammed herself. Why didn’t she just sell it? I’m sure she could have gotten more than 60K.rnUnfortunately people will just remember the words Reverse Mortgage scam!

  • Rainmand, you make it sound so simple. This was a felony. “Free house” sounds so flippant. The deed will be voided abd the lender has been victimized. rnrnFurther, in this market the valuation likely went underwater ten minutes after closing. So when the lender tries to recover, they will be at the mercy of this economy.

  • If a face-to-face meeting was had, we’d be hearing charges against the RM company too. I would’ve hoped in person a loan officer would realize he was seeing a woman not a man.

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