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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.
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Last modified: May 25, 2011