Guilty plea for mortgage fraudster

by Diana Aqra28 May 2013
A sales manager for a San Francisco home builder has pleaded guilty to bribing a loan officer to originate loans for unqualified borrowers.
According to the FBI, Jason Sterlino admitted to a scheme he perpetuated while working as a sales manager for Discovery Sales. Beginning in 2007, Sterlino agreed to pay a mortgage broker US$ 30,000 for each loan he originated. The loan originator was funding the loans through Bank of America.
A Bank of America loan officer also received a referral fee as a commission and Sterlino also received a US$ 5,000 kick-back for every loan closed from the broker, according to the FBI.
Sterlino was charged for bank bribery and other charges, but is currently free on bond awaiting sentencing. 
His sentencing is scheduled to 24 October 2013 and he will be prosecuted by the US Attorney General’s office in San Francisco, where he carried out the scheme. 


Should CFPB have more supervision over credit agencies?