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Metropolitan region plays key role in FBI fight against mortgage scams
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WASHINGTON (Map, News) - As the number of foreclosures in the metropolitan area continue to skyrocket, the region has become a key battleground for the FBI’s fight against mortgage fraud, federal officials said Thursday.
As the subprime mortgage crisis has spread from Wall Street to Main Street, sending thousands of homeowners toward foreclosure, legions of scammers have followed in its wake, FBI Director Robert Mueller III said Thursday.
Since 2005, the number of mortgage fraud schemes being investigated by the FBI has doubled from 721 to 1,416 as of May. And since March 1, the FBI has sent to court 144 mortgage fraud cases, many targeting the country’s most financially vulnerable whose homes were heading to foreclosure.
Operation Malicious Mortgage has charged 400 alleged fraudsters who the FBI believes inflicted roughly $1 billion in damage nationwide.
In the Greater D.C. area, since March 1 prosecutors have identified about $70 million that has been taken from local victims, and federal officials listed the region as an “emerging problematic mortgage fraud area,” in part because of the rapid rise in foreclosures.
A report released Thursday showed that the number of foreclosures per 10,000 homes in the region jumped from 23 to 131, while the national average went from 58 to 87, sending the area into the top tier of regions stuck in foreclosure crisis.
The fraud in recent years has followed trends that increasingly include “foreclosure rescues and reverse mortgages,” said Deputy Attorney General Mark Filip.
“The FBI will continue to direct investigative and analytic resources toward mortgage fraud and corporate securities fraud that threaten our nation’s economy,” Mueller said.
Mueller added that the FBI consolidated the recent spate of indictments as a “deterring factor,” sending the message to all fraudsters that “we will investigate you, we will prosecute you, and you can expect to see additional time in prison.”
fklopott@dcexaminer.com
Comments from Examiner Readers
4:24 PM MST on Fri., Feb. 1, 2008 re: "Baltimore eyes more lawsuits against mortgage lenders in foreclosure fiasco"
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Union Man said:
This whole mess is Bob Erhlich's fault. Everything that is screwed up in Maryland is Erhlich's fault. Bob Erhlich is also responsible for the Titantic sinking, the explosion of the Hindenburg, the Challenger disaster, The 9/11 attacks and lead paint in toys!
102 agree | 108 disagree
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Tax Free Marylander said:
so can the citizens who pay their bills sue the government because the government put pressure on the lenders and banks for their Equal Opertunity Lender clause? If the government kept their hands out of the cookie jar, and not base thier tax collecting on the money they received from all the questionable loans being made, none of this would have happened! But cities like Baltimore, Cleveland, Philidelphia,,,, banking phoney money. Now that the phoney money is not there, they turn to sueing and illegal shake downs as their new source of income. Just speaking the truth here, if you read and research, you'll understand that our governments are leading us down the road to bankruptcy, so they can get more control over us little people.
116 agree | 98 disagree
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Galt said:
Perhaps if Baltimore would elect someone who would actually see to the business of the City, policing criminals foremost, perhaps it wouldn't need to file mortgagee conspiracy lawsuits.
119 agree | 112 disagree
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fed up with hearing we should "blame the lenders" said:
"Dixon reiterated her concerns that predatory lenders contributed to the rash of foreclosures plaguing the city" - OH REALLY? Didn't these people know what their income was when they signed for these high-risk loans? Of course they did! There may be "predatory" lenders out there but more importantly there were too many "stupid" people who wanted to own a home at any cost. And the cost, as usual, will be on the backs of responsible citizens.
93 agree | 102 disagree
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Examiner Reader said:
So let me get this straight. It's Wells Fargo's fault that people defaulted on their mortgages. Who are they going to blame next? I guess the city will try to extort money to provide free housing to people who aren't responsible enough to pay a mortgage.
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Fed up with LEFTARDS said:
What does Ehrlich have to do with it other than the leftards of this state blame everything on him?
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Fed up with LEFTARDS said:
Sheila the Shoe is sure to run out of town EVERY mortgage company now willing to give loans to those with questionable credit. What an idiot she is. This is nothing short of extortion Je$$ie Jack$on style.
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Examiner Reader said:
According to industry analysts, the vast majority of these forclosures happen because the borrow has made NO attempt to contact the lender -- but just walked away from their loan. Sorry folks, you have to take responsibility for your affairs.
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Examiner Reader said:
maybe.. and this is just a crazy thought here... the foreclosure rate is higher in the city than in the "white suburbs" because "white suburbians" PAY THEIR BILLS!!!!!!! ever think of that?? huh?
123 agree | 129 disagree
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Purgatory said:
These lenders are going to start redlining the City because of its litigous attitude. I think unless these companies blatantly broke the law and were acting in discord with the law it is the buyers responsibility to be sure they understand what they are getting themselves into when they sign. If I can't pay my credit cards bills because I didn't realise they are are going to require me to pay the bill with interest each month is the governement going to bail me out and is the City going to bring suit against the cc companies for taking advantage of my stupidity? I think not!! Well then again maybe!!
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Examiner Reader said:
The law suits will drive honest lenders out of the City. Government needs to get out of the way and let the market take care of itself. This problem would not have happened if government had not forced lenders to stop red lining.
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Examiner Reader said:
Maybe there should be a FUBU mortage bank.
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Puzzled said:
Why not! You can't combat crime or do any of the heavy lifting. SUE!
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Examiner Reader said:
It should be pointed out that suing by Baltimore city of mortgage lenders just might be a two edged sword. Ms. Dixon could find her position on lawsuits against mortgage lenders to be very precarious indeed for the city.
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Examiner Reader said:
dont shop for a new loan. go back to the company that screwed you the first time. just shove those pesky f b i agents out of the way.
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Examiner Reader said:
Nice going Ehrlich.
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