The news has been so full of large scale mortgage fraud and high profile illegal shenanigans, that it can be easy to forget about the hundreds or thousands of small scale hucksters who have cost U.S. consumers millions. If you were the victim of one of these unscrupulous mortgage brokers or real estate agents, you should be happy to know that the FBI is cracking the whip. On March first, the agency launched "Operation Malicious Mortgage". So far, the effort has identified 144 fraud cases and charged 406 defendants. There are 1,400 more cases still under investigation. With 180 agents in 42 mortgage fraud task forces, more are on the way. The majority of the arrests came Wednesday as two major Bear Stearns hedge fund managers surrendered to the FBI. All of this indicates that corruption has run rampant at every level of the mortgage industry and tighter regulation and oversight are absolutely essential if we are to prevent further rape of the American dream.

Comments are closed.