A former loan officer of a mortgage lender owned by a Texas bank holding company is now banned from working in a federally insured financial institution for allegedly originating fraudulent mortgage loans of at least $1.7 million, the Federal Reserve said Thursday.
The Fed said Aquana Raffington, a former employee of PrimeLending, a mortgage lender and subsidiary of PlansCapital Bank – an indirect subsidiary of bank holding Hilltop Holdings of Dallas – consented to the prohibition order.
According to the Fed, Raffington was a loan officer for the mortgage lender from March to September, 2022 when her employment was ended.
During that time, the Fed alleged, “Raffington caused PrimeLending to originate multiple mortgage loans totaling at least $1.7 million to individuals purportedly employed by businesses owned by Raffington and her close relative, in violation of PrimeLending’s prohibition against conflicts of interest.”
The Fed said documents supporting the loans (asset and income statements, among others) submitted with the loan applications were fraudulent and misrepresented the borrowers’ employment and incomes in the borrowers’ favor.
“Raffington knew that the underlying employment and income information
was false, and failed to report or otherwise prevent this fraud,” the Fed said. “Raffington earned commission for originating these fraudulent mortgage loans.”
Federal Reserve Board issues enforcement action with former employee of PrimeLending
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