-3- Naiman was president and chief executive officer of Pioneer Mortgage from the mid-1970's until the company filed for bankruptcy in January 1991. Pioneer Mortgage originated and serviced real estate loans and sold investments purportedly related to these loans to third parties. The loans originated by Pioneer Mortgage generally were of a short-term duration and were secured by real estate. The loans were commonly known as "equity loans" because they were based primarily on the borrower's equity in the real estate securing the loan, as opposed to the borrower’s creditworthiness. The interest rate and origination fees on equity loans were commensurate to the relatively high degree of risk involved. Pioneer Mortgage offered several types of investments related to the equity loans it originated. The primary investment it offered was a purported fractionalized interest in a note and deed of trust from the borrower to Pioneer Mortgage. This type of investment was portrayed to the investor as safe and conservative. Potential investors were advised that the borrower had sufficient equity in the collateralized property to support the loan. Another type of investment offered by Pioneer Mortgage was a mortgage pool investment known as a Collateral Mortgage Obligation 1(...continued) companies under the Pioneer Mortgage umbrella: Naiman Financial Corp.; Naimpro, Inc.; Naimco-Clairemont, Inc.; Naimco, Inc.; Alvarado Investment Corp.; and Frontier Service Corp. As used hereinafter "Pioneer Mortgage" refers to Pioneer Mortgage and its interrelated companies.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011