Escrow waivers get review
In January, a story by Channel 3’s investigative reporter Tom Meyer indicated that Cleveland Heights Housing Commissioner Rick Wagner, at the urging of the FBI, may have exacerbated the impact of an alleged mortgage scam on Cleveland Heights. Specifically, Meyer’s report said Wagner waived escrow requirements to repair housing violations, allowing homes to change hands before repairs were made.
In the context of the alleged mortgage fraud—the subject of a 266-page indictment announced last August—escrow waivers allowed the homes to sell faster, ultimately ending up in the hands of unqualified buyers, and later to fall into foreclosure or abandonment.
After the story broke, City Manager Robert Downey asked Cleveland Heights Law Director John Gibbon to review the matter and report on the city’s role in the FBI investigation and its impact on the city.





























