MHProNews.com has learned from MyrtleBeachonline two South Carolina men were each sentenced to three years in federal prison for falsifying loan applications to banks to obtain mortgages on manufactured homes that were never delivered. Conway, SC MH dealer Glenn Vaught and mortgage broker Michael Fortenberry provided false documentation to obtain the loans in MH customers’ names, then split the money. Two banks lost over $1.5 million in the scheme, and customers were left with five and six-figure mortgages on homes that never existed. One victim of the fraud could not get a conventional loan and went through Vaught’s G & E Home Center in 2006 to obtain a $129,000 mortgage. She never received a home, but did receive overdue notices for a home that did not exist. One collection agency even threatened to foreclose on the non-existent MH. The two men will be on three year supervised release after prison. Fortenberry ‘s wife will stand trial this month on seven felony counts of loan application fraud. Another mortgage broker has already been convicted of falsifying information on a loan application and faces sentencing.
