Myrtle Beach banks feel sting of bad debt

A lawsuit filed against a former Myrtle Beach mortgage broker who has admitted to bank fraud illustrates a growing trend for banks that were duped by fraudulent loan applications during the real estate boom, and experts warn the fallout could put further pressure on banks already straining from real estate losses.

Rock Hill-based Coastal Mortgage Services Inc. is suing Darin Epps, the former owner of Myrtle Beach-based Dunes Mortgage, over a loan Epps arranged for a condominium buyer in the Carolina Forest subdivision.

The lawsuit is separate from a felony bank fraud charge that Epps pleaded guilty to in April. Epps has not yet been sentenced on the criminal charge.

Read the complete story