Sen. Elizabeth Warren and others question lack of prosecutions for mortgage fraud

WASHINGTON (Reuters) – Three Democratic lawmakers asked to discuss with U.S. Attorney General Eric Holder the Department of Justice’s allegedly uneven efforts to prosecute mortgage fraud, according to a letter dated Monday.

U.S. Senator Elizabeth Warren and representatives Elijah Cummings and Maxine Waters are seeking an audience with Holder over a new watchdog report that said the FBI ranked mortgage fraud as a low threat after the height of the financial crisis, even though the Justice Department had said investigating that crime would be a top priority.

“This report calls into question the Department’s commitment to investigate and prosecute crimes such as predatory lending, loan modification scams, and abusive mortgage servicing practices,” the three lawmakers wrote of the report released last week by the Justice Department’s inspector general.

A Justice Department spokeswoman did not immediately respond to a request for comment.

In recent years the government has been accused of not doing enough to go after the kind of conduct that fueled the housing crisis, including mortgage fraud.

Common mortgage fraud schemes include borrowers lying on mortgage applications or scammers who promise relief to borrowers facing foreclosure.

More here: http://www.rawstory.com/rs/2014/03/17/sen-elizabeth-warren-and-others-question-lack-of-prosecutions-for-mortgage-fraud/