FBI holds 300 for mortgage fraud

One law enforcement official said the frauds had cost victims $1bn.

19 June 2008

U.S.-The FBI says it has arrested about 300 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.

Earlier in the day, two former Bear Stearns managers in New York were arrested following the collapse of a fund linked to sub-prime mortgages.

Further Reading:

Housing crisis brings Wall St arrests, veto threat