Michael and Kazuko Yang - Page 3




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          in a family-operated factory in Taiwan.  Mr. Yang’s father passed           
          away in 1997.                                                               
               In 1991, Mr. Yang incorporated “Torrance Consulting, Inc.”             
          (Torrance Consulting) under the laws of the State of California             
          for the purpose of engaging in contracting work.  In 1993,                  
          petitioners sold their home in California and moved to                      
          Washington.  On June 8, 1993, petitioners signed a home loan                
          application for residential property in Bellevue, Washington.               
          The application was signed under penalty of perjury.2  In the               
          application, petitioners reported gross monthly income of $7,000            
          from Torrance Consulting and gross monthly income of $1,000 from            
          dividends/interest.  The address for Torrance Consulting that               
          petitioners put on their application was the same as their home             
          address.  Petitioners also reported owning a business with a net            


               2The application the petitioners signed was a Freddie Mac              
          Form 65/Rev. 10/92 which contained the following certification              
          above petitioners’ signature:                                               
               Certification: I/We certify that the information                       
               provided in this application is true and correct as of                 
               the date set forth opposite my/our signature(s) on this                
               application and acknowledge my/our understanding that                  
               any intentional or negligent misrepresentation(s) of                   
               the information contained in this application may                      
               result in civil liability and/or criminal penalties                    
               including, but not limited to, fine or imprisonment or                 
               both under the provisions of Title 18, United States                   
               Code, Section 1001, et seq. and liability for monetary                 
               damages to the Lender, its agents, successors and                      
               assigns, insurers and any other person who may suffer                  
               any loss due to reliance upon any misrepresentation                    
               which I/we have made on this application.                              





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