Friday, June 20, 2008

FBI Cracks Down Hard On Mortgage Fraud

Housing developers.
Mortgage lenders.
Real Estate Agents.
(Hmm, no notaries?)

In a widespread crackdown on mortgage fraud, federal authorities indicted hundreds of individuals spanning a multitude of occupations in an attempt to allay fears and protect home buyers from predatory lenders. In addition, two former Bear Sterns fund managers who sold mortgage-backed investments were also arrested on conspiracy and securities fraud charges. The indictments come in the wake of allegations regarding democratic Senators Christopher Dodd and Kent Conrad, who received cut-rate home loans from Countrywide. The indictments also follow high profile arrests in Chicago, Atlanta, Houston, & Miami as part of Operation Malicious Mortgage.

“It makes clearer that the causes of the credit problems are very broad-based and can’t be put at the feet of one player,” said Mark Zandi, senior economist at Moody’s

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