FBI to target mortgage fraud

[FarCenter]

By Suzanne Kapner in New York

Published: June 11 2010 02:25 | Last updated: June 11 2010 02:25

The Federal Bureau of Investigation is preparing a nationwide crackdown on mortgage fraud, the latest in a series of efforts to curb lending practices that contributed to the housing meltdown, according to people familiar with the matter.

The FBI is preparing to arrest hundreds of people across the US as early as next week for offences including encouraging borrowers to falsify income on mortgage applications, misleading home owners about foreclosure rescue programmes, and inflating home appraisals, said two people with knowledge of the operation. An FBI spokesman declined to comment.

Since October 2008, the FBI has opened 23 local mortgage fraud task forces around the country with the purpose of curtailing the illegal misstatement, misrepresentation or omission of material facts on mortgage applications.

<SNIP>http://www.ft.com/cms/s/0/da70fbfa-74e0-11df-aed7-00144feabdc0.html

[notesdev]

1. About time

only about 8 years too late

now is this just targeted at the small fries or will BoA/Countrywide etc. also be under fire?

[mrmpa]

2. ditto

[dixiegrrrrl]

3. The horse left the barn so long ago it died of old age.

NOW the FBI is "cracking down"?