Urban Legend

July 30th, 2008

OCC - Customer Assistance Group
1301 McKinney Street
Suite 3450
Houston, TX 77010

via snail mail
to: distribution list /with attachments

Dear OCC Customer Assistance Group,

Please treat this as a formal complaint against Kerry Killinger personally, and against Washington Mutual - specifically including (but not limited to) a pattern of mortgage fraud.

For your convenience, a complete copy of this document is published on the Internet at:

http://www.mkgappraisal.com/letter2008_12.htm

8,000 Per Day

It's been in the national news recently -- across the country 8,000 homes go into foreclosure every day. Think about that for a minute.

Read this quote from a 07/22/08 article in the Miami Herald.

No possible excuse can justify the failure of state regulators who not only failed to protect homeowners and mortgage borrowers from fast-buck artists out to prey on the public, but actually gave the thieves a license to plunder.

I encourage you to read the article(s) - here and here. The article gives details of how 4,000 criminals applied for a mortgage broker license in the state of Florida. They cleared the background check and got their license. The state of Florida has a big problem with foreclosure. Do you see the connection?

It's a good thing that kind of stuff isn't going on in Colorado. Right?

Disclaimer

Everything in this document is my interpretation of information found in the public records. It's my opinion, take it for what it's worth.

Lorenzo Moody

144 S Emerson St, Denver, CO 80209. I urge you to take a close look at the listing history. This one page document makes it very clear there was some serious mortgage fraud involved in this property in August 2006.

This property went on the market in May 2006 with an asking price of $349,950. About a month later on June 28th, 2006 the asking price was $379,000. The next day the property went under contract. After the contract was signed, the asking price was changed - increased to $599,000. That's an increase of $220,000 - literally overnight.

The listing agent was Charles Denver Parks (EI40025138) of Help-U-Sell LoDo. He is also a licensed mortgage broker (LMB100014425) of Aspen Lending.

Charles Denver Parks handled both sides of this transaction - he was both the listing agent and the selling agent. It looks like he got a really good deal for the seller. Turns out he was the seller too.

Charles Denver Parks sold this property to Lorenzo Moody. Under the circumstances - I wonder if (during the pertinent time period) Lorenzo Moody was a genuine live human being with a pulse? Or an urban legend?

The sole purpose of this transaction was to generate excess mortgage funds, a/k/a cash back at closing, a/k/a mortgage fraud. The deeds report shows a $599,000 mortgage loan made by (now defunct) New Century Mortgage.

Fast Buck Artist

The management at New Century are accurately described as "fast-buck artists out to prey on the public".

Even if Lorenzo Moody is/was a real live person - the mastermind of this quarter million dollar scam was Charles Denver Parks - a smooth talking son of a gun. On or about August 4th, 2006, Charles Denver Parks walked away from the closing table with about $400,000 cash - in exchange for his equity in a $250,000 house.

The MLS sold listing shows a seller concession of $10,000. Which would be funny except it's really very sad.

15 months later (Nov 2007) this property went back on the market asking $294,000. It sold for $241,000 after 117 days on market. That's $358,000 less than the loan amount - in about 15 months time.

Charles Denver Parks is still licensed in good standing with the Colorado Board of Real Estate.

Secresha Cooper

5741 S Nucla Ct, Centennial, CO 80015 (Piney Creek). Secresha Cooper bought this property in April, 2006. The contract price is recorded as $356,500 which is $1,600 above the asking price - after 268 days on market. The listing agent (Kimberly Pitaniello) reported a seller concession of $10,500 on the sold listing. Secresha got a $356,500 mortgage loan from the bank formerly known as Fremont Investment and Loan.

The real estate agent who helped Secresha Cooper buy this house (the selling agent) in April 2006 is named John Bivins. In 1997, John Bivins pled guilty to one count of theft of government monies in Federal Court - case number 95-CR-330-2. He was put on probation by the Colorado Board of Real Estate, and told he could only continue working as a real estate agent if he did what the Court had already ordered - make restitution.

Lorenzo meet Secresha

This $356,500 purchase by Secresha Cooper turned out really well. Secresha was able to sell this property for $445,000 in July of 2006. That's an increase of $88,500 in about 3 months time. This favorable sale was accomplished without the benefit of an MLS listing.

Secresha sold this property to Lorenzo Moody a/k/a the urban legend. In July of 2006 Washington Mutual made a mortgage loan of $445,000 to Lorenzo Moody, with 5741 S Nucla Ct as collateral.

Any idiot could see this house was not worth $445,000.

The sole purpose of this transaction was to generate excess mortgage funds, a/k/a cash back at closing, a/k/a mortgage fraud. Nobody moved in, and Lorenzo Moody never made a payment. This house promptly went into foreclosure.

I wrote about this property in March, 2006, again in July 2006, and again in November 2006. I sent this letter to WaMu CEO Kerry Killinger (and others) in October, 2005.

The current owner of this property is the 5741 S Nucla Ct LLC (a/k/a Washington Mutual & Deutsche). Which is to say the Cracker Jack REO team at WaMu is still trying to sell this property. They recently listed it for sale asking $362,000.

More Secresha Cooper

Secresha Cooper bought (at least) 3 other houses in 2006. Refer to this handy summary.

3394 Magnolia St, Denver, CO 80207. She bought this property on 04/28/06 with the help of a $155,000 mortgage loan from Washington Mutual. It's not clear why she bought this property, but it was not a happy ending. 5 months later (Sept 2006) this property went back on the market asking $214,900. It eventually sold 4/28/08 for 139,000 after 400 days on market. That's (only?) $16,000 less than the loan amount.

LaMarcus

3090 Fairfax St, Denver, CO 80207. John Bivins helped LaMarcus Jenkins buy this house from Paddy Q Cox (licensed real estate agent) on 01/31/06. The contract price was $219,900 with a $6,300 seller concession. Days on market (DOM) = 226. Mortgage fraud on this transaction is estimated to be (only?) $40,000.

But wait - it gets better.

Secresha meet LaMarcus

About 8 months later, in August 2006, LaMarcus Jenkins sold the property to Secresha Cooper for $340,000. That's $120,000 appreciation in 8 months time. This favorable sale was accomplished without the benefit of an MLS listing. I think John Bivins was knee deep in this transaction. Do you agree?

Secresha somehow got a $340,000 loan to buy a $170,000 house. The loan was provided by First NLC Financial Services. The sole purpose of this transaction was to generate excess mortgage funds, a/k/a cash back at closing, a/k/a mortgage fraud. Nobody ever moved in, and Secresha never made a payment. This property promptly went into foreclosure. First NLC Financial Services went kaput.

John Bivins collected a real estate commission and also shared in the proceeds of the $170,000 mortgage fraud. Wouldn't it be ironic if John Bivins used the money he made on this transaction(s) to pay restitution for the Government money he stole so he could get his real estate license off probation with the Colorado Board of Real Estate?

The REO sale started out asking $269,000 in April 2007. By May of 2008 (a year later) the asking price had been reduced to $195,500 and still no sale. They gave up and sold by auction. The public records shows that Martin Chernoff bought the property from EMC Mortgage Corp (JP Morgan Chase) for $165,375 on July 3rd, 2008. That's $174,000 less than the loan amount.

It's sad.

4 Potato

5173 Fraser St, Denver, CO 80239. John Bivins helped Secresha Cooper buy this property (her 4th) in May, 2006. Secresha got a $218,000 mortgage from the good people at Ownit Mortgage Solutions. Ownit went kaput. This property promptly went into foreclosure. It sold for $173,000 10/31/07 - (only?) $45,000 less than the loan amount.

Dear Erin Toll

By copy of this letter to D. Rico Munn and Erin Toll, please treat this as a complaint against the real estate license of Charles Denver Parks (EI40025138) of Help-U-Sell LoDo, and his mortgage broker license (LMB100014425) of Aspen Lending. Also please treat this letter as a complaint against the real estate license of John Bivins (ER201231) of Premier Property Brokers.

Sincerely,

Philip G Rice
11268 E Linvale Dr
Aurora, CO 80014
720-282-3376
phil.rice@mkgappraisal.com

ps - To all who have read this far, please take a minute and think creatively about something you can do. Make a positive difference. If you need help, call me at 720-282-3376 or send an email.

-- End of Letter --

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