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Mortgage Crunch & Prostitution? (Read To Believe)

I can’t let this one go, sleazy as it is. Here I am today, working on this report that Countrywide is looking to make another deal, possibly Citigroup or JP Morgan Chase, to get more money after it just got a two billion dollar infusion from Bank of America, when I get an email from a fellow blogger at www.housingpanic.com.

It seems local New York City reporter Lou Young, of WCBS, came upon a story about two mortgage brokers in New Rochelle, NY, who lost money on an investment property and so, in order to keep afloat, turned the home into a brothel. They tried to sell, then tried to rent, but none of it really panned out. One can only assume the mortgage business wasn’t helping this couple either. The couple, and their four employees, were arrested, after police raided the home last Friday night. The officers were tipped to the brothel from a posing on Craig’s List offering dominatrix services, not to mention a grand opening special.

This couple of mortgage brokers were just trying to find some cash to float their loans, much like Countrywide I guess. It kind of makes you think. Thanks to Keith at Housingpanic for the tip.

Questions? Comments? RealtyCheck@cnbc.com

  • Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

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