Mortgage Fraud Crackdown – how things are turning out…
The FBI seems to have arrested around 400 real estate brokers on charges of fraudulent mortgage deals. Even Wall Street Managers have not been spared. 2 such managers at Bear Stearns in New York have been arrested in relation to their roles in the subprime mortgage market collapse.
Take a sneak peak into the recent developments in curbing mortgage fraud.
- Named as Operation Malicious Mortgage, the investigation involved lending fraud, money laundering, and foreclosure rescue scams.
- The White House threatened to veto a housing relief plan which could create a new fund to underwrite up to $300 billion of failing mortgages.
- As per the relief plan being debated in the Senate, around 40,000 homeowners could be saved from foreclosure. But the White House objected to the provision as per which the state and local government’s money would be used to buy and fix foreclosed properties.
To know more on the fraud crackdown, refer to LATimes news on Mortgage Fraud crackdown
Technorati Tags: mortgage fraud crackdown, curb mortgage fraud
June 21st, 2008 at 4:53 am
Hi Jessica.
The frauds should be punished. It is good that the Government has become active and The FBI have arrested around 400 mortgage frauds. This actually going to help the mortgage industry. If the frauds are arrested and punished that will not only help the borrowers and increase the credibility of the honest brokers,l enders, and loan officers.
February 19th, 2009 at 5:01 am
Mortgage Fraud Crackdown is really a great thing to be appreciated