Torrance man is indicted in federal home equity case along with woman

Charges allege that they bilked dozens of homeowners out of the equity of their homes as part of an $8 million foreclosure scheme.

A Torrance man was arrested Wednesday along with a Downey woman on federal charges alleging that they bilked dozens of homeowners out of the equity of their homes as part of an $8 million foreclosure scheme.

Edward Seung Ok, 39, was taken into custody by FBI agents along with Martha Rodriguez, 33, a day after a grand jury handed up an indictment alleging 10 counts of mail fraud. Among the victims, identified only by initials in the indictment, were two homeowners in Wilmington and one in Carson.

The indictment alleges that Rodriguez and Ok, who operated escrow and property companies, started their foreclosure scheme in June 2004 and kept at it until August.

The two would use public filings and an electronic database to find homeowners who were facing foreclosure sales. They would offer the owners short-term loans if the owners signed documents giving up the title of the homes.

Rodriguez and Ok allegedly would promise the homeowners that their credit would be improved within six months. They also assured the owners that they would not lose title to their homes.

The defendants allegedly would later apply for mortgage loans, sometimes using people who were paid up to $5,000 to pose as buyers, and other times using information and forged signatures of past clients without their knowledge.

Rodriguez and Ok would then tell lenders to wire the loan proceeds to their escrow accounts, with a small amount going to the homeowner. Most of the proceeds would go to Rodriguez, members of her family, Ok, and other "unindicted co-schemers," the indictment states.

The indictment states Ok and Rodriguez were involved in 70 fraudulent home-loan appli- cations and caused $8 million in losses to the lenders and homeowners. The homes of other alleged victims in the case were in Los Angeles, Azusa, Downey, El Monte, La Puente, Lakewood and West Covina.

The companies Ok and Rodriguez used for their operations included Deko Ltd., Silvernet Properties, Bellasi Escrow and Silverfunds Mortgage.

Ok and Rodriguez were scheduled to appear in federal court Wednesday. Attempts to contact lawyers representing them were unsuccessful.

FBI officials are asking that anyone who believes that they may have been victims of Ok or Rodriguez contact the bureau's Los Angeles office at 310-477-6565.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.