FBI Reports Mortgage Fraud Cases are on the Rise
1 May 2008
The Federal Bureau of Investigation is starting to see a tremendous surge in mortgage fraud investigations that they have diverted agents from menial tasks to help stem the problem. Fraud in US financial Institutions, as well as those associated with lending practices are on the rise as a result of the sub-prime mortgage debacle. There were several incidents of insider trading violations who allow risky borrowers to continue getting loans in spite of the current crisis that has been a result of the same practices. Several companies, though undisclosed, are being investigated for fraud and other crimes related to the mortgage industry. Lenders are some of the worst hit but they are essential for the industry to survive for they provide bulk of finances needed for short-term goals. They are also the ones who fuels the industry but cases of fraud and insider meddling may signify that people are getting desperate in their attempts to survive the crisis. The agency is hard at work to get these people to answer for their crimes in hopes of preventing further loss of confidence in them for they are the lifeblood of the industry indeed.
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