Mortgage Industry Investigation Steps Up Pace
- May 05, 2008
Washington, D.C.–The federal investigation of the mortgage industry has increased in recent weeks, the New York Times reported Monday.A task force created by the Federal Bureau of Investigation and the Internal Revenue Service’s criminal division–which includes federal prosecutors in New York, Los Angeles, Philadelphia, Dallas and Atlanta–is studying mortgages that were issued with minimal or no proof of earnings or assets, according to an anonymous government source.Formed in January, the task force has increased its pace. The current investigation is larger in scope than the F.B.I. mortgage lender investigation that is also underway, the Times said.The new group is examining mortgage lenders and brokers’ involvement in issuing low- and no-documentation loans and how those loans were packed into securities.