Get ready for the perp walks. There's been a surge in mortgage fraud cases in recent months as a result of the subprime debacle. Investigators have charged over 400 people since March - 60 of them on June 18th.
The mortgage fraud cases range from retail abuse by mortgage brokers and appraisers to institutional dealings among banks and investors. It looks like the chickens are coming home to roost for the bad guys, but we don't know who will really be held responsible. It might be the bad apples, or the regulators might just put up a good show by making an example out of the easy targets.
What do you think of the recent crackdown and inevitable increases in regulation? Will it make things better?
Further reading:
- Subprime - Definition
- LA Times on Mortgage Fraud - With video of DOJ communication
- High Risk Mortgages
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