"Operation Malicious Mortgage": FBI arrests 406 for mortgage fraud (appraisal, agents)

[delusianne]

Cioffi Arrested Over Subprime Hedge Fund Collapse

Bloomberg.com: Worldwide

The arrests are the first from a federal probe of possible fraud by banks and mortgage firms whose investments in subprime loans and securities plunged in value, causing losses that now total $396.6 billion.

UPDATE:

BBC NEWS | Business | FBI holds 406 for mortgage fraud

The FBI says it has arrested 406 property market players as part of its crackdown on mortgage fraud.

The arrests include estate agents and loan originators, who help homebuyers to take out loans.
Reported mortgage fraud has soared in the past year, with the most common type being mis-statement of assets.

[Bideshi]

Good. I hope they go after the people that lied on their loan applications for fraud as well. We will all pay dearly for their actions.

[Annemieke Roell]

I am sooo happy this is finally starting to see the light of day. I have an appraiser friend who has been working on this (from the appraisal angle) for years. It destroyed her appraisal business but it looks like it is finally starting to pay off!!!!!

[bentlebee]

More houses on the market..., so now we all have a chance to buy their homes for a cheap price.., I mean the homes of the people who scammed other home owners who are now in trouble...so now they will feel how it is to sit in the hot seat.

I guess many more a waiting what will happen to them.....they also have to go after poeple like Senator Dodd who isn't allowed to accept gifts over $ 100.- but took gifts over $ 75 K, because of the favored rates he has to pay for his mortgage.