Jaime L. Mulvihill, 40 has been sentenced to six months in prison and two years supervised release following his time served, after defrauding borrowers out of approximately $500,000. Mulvihill was the principal and co-founder of a North Andover, Massachusetts, short sale assistance company.
"Mulvihill and her co-defendant Gabriel T. Tavarez founded and operated Loss Mitigation Services LLC in North Andover, where for about three years they stole undisclosed and improper fees from mortgage lenders in connection with the short sales of homes, according to the Department of Justice," reported The Eagle Tribune.
A short sale occurs where the mortgage debt on the home is greater than the sale price, and the mortgage lender agrees to take a loss on the transaction.
Loss Mitigation Services stepped in to act on behalf of the borrowers. However, the report revealed that mortgage lenders typically forbid short sale negotiators from receiving proceeds of short sales.
"From 2014 to 2017, Mulvihill directly or through her employees, falsely claimed to homeowners, real estate agents and closing attorneys that mortgage lenders had agreed to pay Loss Mitigation Services fees known as 'seller paid closing costs' or 'seller concessions' from the proceeds of the short sales, according to the Department of Justice," the article reported.
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