For a many years now it was known in the bubblesphere that there was significant fraud in the real estate industry. Now the feds (Federal Government) is doing something. The AP is reports
More than 400 real estate industry players have been indicted since March —including dozens over the last two days — in a Justice Department crackdown on incidents of mortgage fraud nationwide that have contributed to the country's
The FBI put the losses to homeowners and other borrowers who were victims in the schemes at over $1 billion.
"Mortgage fraud and related securities fraud pose a significant threat to our economy, to the stability of our nation's housing market and to the peace of mind to millions of Americans," Deputy Attorney General Mark Filip said in a statement Thursday. The Justice Department and FBI planed to announce the cases at an afternoon news conference in Washington.
The Federal Government should have investigated and prosecuted mortgage fraud aggressively many years ago when it would have had much more of a positive impact. Back then it would have helped slow the speculative and fraudulent nature of the destructive housing bubble.
Still, I'm glad the feds are going after mortgage fraud. Hopefully, they will find and prosecute the infamous Casey Serin.