The Housing Chronicles Blog: Government about to file charges against subprime lending fraud

Friday, October 17, 2008

Government about to file charges against subprime lending fraud

While it lasted, working as a mortgage broker was a sure-fire way to make good money without the need for a license or even a high school diploma. Of course what went along with that was a great deal of fraud, and it looks like we're about to hear of various indictments being handed out to the scofflaws. From an AP story via

The top federal prosecutor in Los Angeles indicated Thursday that charges are coming soon from a sweeping investigation of banks and subprime lenders for their role in the U.S. mortgage crisis.

"I think we are going to see some fairly dramatic results in the near future," U.S. Attorney Thomas O'Brien told The Associated Press. "Mortgage fraud is an extremely important issue to me and to the people of this district."

A grand jury is investigating at least three mortgage lenders — Countrywide Financial Corp., New Century Financial Corp. and IndyMac Bancorp Inc.

Thirty-four lawyers currently are looking at mortgage fraud and other white-collar crimes, now one of O'Brien's top priorities.

The government is pursuing a "surgical approach" in its investigations and hopes to streamline its prosecutions by seeking indictments with only three or four counts, instead of spending several years seeking additional charges.

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