U.S. government agencies are intensifying a criminal investigation of the mortgage industry and focusing on whether some lenders turned a blind eye to inflated income figures provided by borrowers.
The Federal Bureau of Investigation and the criminal division of the Internal Revenue Service have formed a task force to examine mortgages that were made with little or no proof of the earnings or assets of borrowers, a government official who had been briefed on the matter said Sunday.
The group also includes federal prosecutors in New York, Los Angeles, Philadelphia, Dallas and Atlanta, said the official, who spoke on the condition that he not be identified.
The task force, which was established in January, stepped up its investigation in recent weeks as the financial industry disclosed billions of dollars in additional write-downs from bad mortgage investments. The latest inquiry is broader and deeper than a separate FBI investigation of mortgage lenders that is also under way.
IHTIF they really want to know, a two-year probe in Georgia reveals how its done.
GA AG Prosecuting Most Complex Mortgage Fraud Scheme in State's History "
The alleged scheme involved appraisers, a real estate agent, a prominent local real estate attorney and "straw buyers," or people who authorities said sold their identities to be used in fraudulent loan applications." Or,
How Fraud Fueled the Mortgage Crisis, "
Brokers Pushed Borrowers to Lie, Lenders Misled and Ratings Agencies Looked the Other Way".
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