Operation Malicious Mortgage wrapped up yesterday with 400 charged and 60 people arrested nationwide. The operation by the FBI is a strike against mortgage fraud across the country.
Now the FBI should be applauded for doing something as mortgage fraud is one of the leading white collar crimes being committed across the country. But, and there is a big but, why are they finally making a push now?
I am just a guy with a computer who reads a little about real estate, but there has been very obvious cases of mortgage fraud happening across the country regularly. To find 155 provable cases of mortgage fraud should be a no brainer to find in every major city in the country. A database search and and an analyst should provide a ton of leads.
So my question is, is this a trend or a one time political move to coincide with the Congressional debate on the mortgage bailout. The cynic in me thinks it is the latter.
“Operation Malicious Mortgage and our other mortgage-related enforcement actions demonstrate the Justice Department’s commitment and determination to combat these criminal schemes, hold their perpetrators accountable and help restore stability and confidence in our housing and credit markets,” Deputy U.S. Attorney General Mark Filip said.
The multiagency operation primarily went after lending fraud, foreclosure-rescue scams and mortgage-related bankruptcy schemes. via MarketWatch.
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Sadly the small scale of the operation looks much more political than a trend. They're trying to send a message, no doubt, but the timing of the debate in the Senate this week is very, very interesting. Not any reaction from the NAR as of yet….
Sad but true, and finally. We all knew this was coming. Give an inch and people take a mile. They all knew they were not on the up and up.
Jeffrey
IonHomeInspection.com
Houston, Katy, Sugar Land
“Operation Malicious Mortgage” is a joke and the FBI should be ashamed at their pathetic attempt to solve the problem. I understand that they are trying to set an example here by holding brokers liable for their actions, but come. Four hundred arrests that’s it? I could walk into a dozen mortgage office here in Charlotte and find four hundred people who are guilty of “malicious lending”. Arresting four hundred people is not going to solve anything. I tell you what should happen. First time offenders receive a $5,000 fine. Second time offenders lose their right to operate as a mortgage broker. Third time offenders face jail time. It is a harsh penalty, but it needs to be done. Things are out of control right now and the real estate market and the economy for that matter are suffering from what has been going on in the real estate market for the past five years.
It’s a new day, new deal, new opportunity
Mike S. – Texo Properties (www.texonc.com)
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