Mortgage broker faces eight more charges

Last update: January 18, 2008 - 11:32 PM

A mortgage broker already charged by Hennepin County as part of an alleged mortgage fraud ring now faces eight additional theft charges for earlier home loans.

The county charged Donald L. Walthall of Anoka with eight counts of theft by swindle for mortgage transactions for eight homes bought from eight lenders in 2005. Seven of the properties were in Minneapolis, and the other was in St. Paul.

The county alleged that Walthall told each lender he'd occupy the property, understated his assets and liabilities, and made money by arranging for mortgages that exceeded the prices he paid for the properties by a combined $240,500. The county said the loans totaled $1.36 million.

Walthall was president of Universal Mortgage Inc., of Brooklyn Park, and also did business as Superior Mortgage Inc., the county said. Universal and five people associated with the firm, including Walthall, were charged last month in a $4.9 million mortgage fraud case involving at least 24 homes.

STEVE BRANDT