Provident Bank is suing My Mortgage for Fraud

Provident Bank is suing Maryland-based My Mortgage for allegedly misusing its warehouse line of credit to fund ineligible loans and sell those properties to its own employees. Provident Bank is seeking a minimum of $9 million in fraud related damages.

My Mortgage, based in Crofton, Maryland, counts 72 sponsored mortgage loan originators and 11 east coast branches in Nationwide Multistate Licensing System records. The retail lender has regularly generated nine-figure origination volume in recent years, and reported $354 million in origination volume in 2024, according to the latest available Home Mortgage Disclosure Act data.  

Provident Bank, based in Iselin, New Jersey, counts over 140 branches across the tri-state area and reported over $662 million in origination volume in 2024.

Provident alleges that My Mortgage used proceeds from a $10 million warehouse line of credit last fall to buy at least 33 properties as collateral for non-eligible, non-owner occupied rehabilitation loans.

My Mortgage allegedly then sold those unoccupied, dilapidated properties to its own employees at above fair market price. Christopher Schiele, the company’s president and CEO, purchased three of the properties.

The bank said it became aware of the alleged fraud in January, and requested over $8 million from My Mortgage in April. As the lender didn't respond, Provident Bank filed the lawsuit, asking for an additional $1 million in damages.

The warehouse line was only meant for conforming and government-backed loans, Provident Bank stated.

My Mortgage, and co-defendant Brian Gorgei, chief financial officer and treasurer of the lender, didn't respond to requests for comment.  

My Mortgage took out over 35 loan advances between April and December of 2025. Those loan advances went to mortgages described as conventional loans under Fannie Mae guidelines.

The agreement between the parties stated that non-conforming loans required the lender's prior approval. Warehouse credit for nontraditional loan types has risen this year, as more lenders veer into those products amid today's volatile housing market.