Ameritrust sues investors, brokers over $14M loss in Baltimore fraud scheme

Ameritrust Mortgage Corp. has sued a group of investors, a mortgage broker, appraisers and title companies in federal court, alleging they orchestrated a real estate fraud scheme in Baltimore that left the lender with more than $14 million in losses. In a complaint filed last week in the U.S. District Court for the District of Maryland, Ameritrust claims the defendants ran “an extensive real estate fraud ring” involving about 90 loans on Baltimore-area investment properties. These loans caused roughly $14,076,000 in harm to the lender and “severely disrupted the mortgage lending market for investment properties in Baltimore and its surrounding areas,” according to legal filings. Defendants named in the suit include mortgage broker FirstLoans Inc. and title companies REXTAR Title Services and Fidelity National Title, according to the complaint. The defendants did not immediately respond to HousingWire’s requests for comment. The lawsuit comes nearly a year after a broader scheme involving investment properties came to light in Baltimore, where a group of investors reportedly purchased hundreds of homes — largely in majority-Black neighborhoods — at sharply inflated prices. These dea...