ID :
21055
Wed, 09/24/2008 - 22:27
Auther :
Shortlink :
http://m.oananews.org//node/21055
The shortlink copeid
F.B.I .investigates mortgage fraud in U.S. banking crisis
New York, Sep 24 (PTI) The Federal Bureau of
Investigation (F.B.I.) is investigating a possible mortgage
fraud in the collapse of banking giants -- Fannie Mae, Freddie
Mac, Lehman Brothers and AIG, a media report said.
F.B.I. spokesman Special Agent Richard Kelko had no
comment on that information, but said that 26 firms were
currently under investigation as part of the bureau's mortgage
fraud inquiry, CNN reported.
"The F.B.I. currently has 26 pending corporate fraud
investigations involving subprime lenders," Kelko told CNN.
"As we have seen, this number can fluctuate over time,
however, we do not discuss which companies may or may not be
the subject of an investigation," he said.
The television network quoted sources as saying the
probes of Fannie, Freddie, Lehman and AIG are believed to be
in the early stages. One source said the government would be
"remiss" if it didn't look into what happened at these
companies because of the financial problems they are
involved in and the actions of individuals running them.
The United States is in the midst of a spiralling
economic crisis fuelled largely by the housing market.
F.B.I. Director Robert Mueller had told the Congress that
1,400 individual real estate lenders, brokers and appraisers
were now under investigation in addition to two dozen
corporations.
Earlier this decade, mortgage lenders relaxed
restrictions on obtaining mortgages as home prices soared
about 85 percent from 1996 through 2006 in inflation-adjusted
dollars, creating a bubble. Then the bubble popped, and
lenders as well as mortgagees took the hit.
As the mortgage industry began to unravel, CNN said, the
F.B.I., with assistance from the I.R.S., launched a broad
investigation into mortgage fraud.
In June, its Mortgage Fraud Task Force had arrested more
than 400 mortgage brokers, lenders, appraisers and other
industry insiders, who, it said, were responsible for more
than USD one billion of losses.
Last month, a Mortgage Asset Research Institute
(M.A.R.I.) study found that the number of fraudulent loans
issued during the first three months of 2008 skyrocketed 42
percent compared with the same period in 2007, CNN said.
Investigation (F.B.I.) is investigating a possible mortgage
fraud in the collapse of banking giants -- Fannie Mae, Freddie
Mac, Lehman Brothers and AIG, a media report said.
F.B.I. spokesman Special Agent Richard Kelko had no
comment on that information, but said that 26 firms were
currently under investigation as part of the bureau's mortgage
fraud inquiry, CNN reported.
"The F.B.I. currently has 26 pending corporate fraud
investigations involving subprime lenders," Kelko told CNN.
"As we have seen, this number can fluctuate over time,
however, we do not discuss which companies may or may not be
the subject of an investigation," he said.
The television network quoted sources as saying the
probes of Fannie, Freddie, Lehman and AIG are believed to be
in the early stages. One source said the government would be
"remiss" if it didn't look into what happened at these
companies because of the financial problems they are
involved in and the actions of individuals running them.
The United States is in the midst of a spiralling
economic crisis fuelled largely by the housing market.
F.B.I. Director Robert Mueller had told the Congress that
1,400 individual real estate lenders, brokers and appraisers
were now under investigation in addition to two dozen
corporations.
Earlier this decade, mortgage lenders relaxed
restrictions on obtaining mortgages as home prices soared
about 85 percent from 1996 through 2006 in inflation-adjusted
dollars, creating a bubble. Then the bubble popped, and
lenders as well as mortgagees took the hit.
As the mortgage industry began to unravel, CNN said, the
F.B.I., with assistance from the I.R.S., launched a broad
investigation into mortgage fraud.
In June, its Mortgage Fraud Task Force had arrested more
than 400 mortgage brokers, lenders, appraisers and other
industry insiders, who, it said, were responsible for more
than USD one billion of losses.
Last month, a Mortgage Asset Research Institute
(M.A.R.I.) study found that the number of fraudulent loans
issued during the first three months of 2008 skyrocketed 42
percent compared with the same period in 2007, CNN said.
