Opher BanarieMortgage Collapse - Part 3
June 20th 2008 16:13
After the two posts yesterday about the mortgage collapse I thought there would be a lull in news about fraud prosecutions. But much to my surprise there is much more news today.
While yesterday's news reports centered around two former Bear Stearns executives, today the Justice Department reports that over 400 individuals have been arrested and will be prosecuted on various fraud charges related to the mortgage collapse.
As the Los Angeles Times reports today:
The mention that "...brokers, appraisers, bankers and lenders" are being arrested is a good thing. The fraud sometimes involved more than just lenders and everyone contributed should be charged.
So far, however, I have not seen any news about borrowers being charged. With Congress rushing bail-out dollars to people who are in foreclosure, it appears to me that first we must verify there is no reward for individuals who filed fraudulent loan applications.
While yesterday's news reports centered around two former Bear Stearns executives, today the Justice Department reports that over 400 individuals have been arrested and will be prosecuted on various fraud charges related to the mortgage collapse.
As the Los Angeles Times reports today:
The Justice Department said Thursday that more than 400 real estate industry players, including dozens in recent days, had been charged since March in a federal crackdown on incidents of mortgage fraud that have contributed to the housing crisis. Those arrested included brokers, appraisers, bankers and lenders.
The FBI estimated the losses to homeowners and other borrowers who were victims of mortgage fraud at more than $1 billion. That is a small fraction of the near $1 trillion in losses worldwide that have been chalked up to the U.S. mortgage fiasco, and federal officials said the number of cases under investigation continues to grow rapidly.
California has been a center of mortgage fraud. On Thursday, Justice Department officials in Los Angeles announced the formation of a nine-agency task force to target those crimes.
California has been a center of mortgage fraud. On Thursday, Justice Department officials in Los Angeles announced the formation of a nine-agency task force to target those crimes.
The mention that "...brokers, appraisers, bankers and lenders" are being arrested is a good thing. The fraud sometimes involved more than just lenders and everyone contributed should be charged.
So far, however, I have not seen any news about borrowers being charged. With Congress rushing bail-out dollars to people who are in foreclosure, it appears to me that first we must verify there is no reward for individuals who filed fraudulent loan applications.
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