US launches new crackdown on mortgage fraudApril 6th, 2009 - 11:51 pm ICT by IANS
Washington, April 6 (DPA) The US launched a new crackdown Monday on mortgage fraud that may have contributed to the country’s worst housing downturn in decades.
The US Justice Department, Treasury and other government agencies announced a joint effort to target bogus companies that have sprouted up offering mortgage refinancing and foreclosure help.
More than three million people were in foreclosure in 2008, a record that helped drive down US home prices and spurred the financial crisis that has plunged the world into recession.
Most of the foreclosures came from holders of sub-prime mortgages - loans to borrowers with poor credit that start with a low borrowing rate that can rise sharply after a time. Lawmakers have criticised mortgage lenders for misleading borrowers about the terms of their loans.
Treasury Secretary Timothy Geithner said the new nationwide crackdown was aimed at preventing criminals from preying on struggling homeowners as the administration takes steps to help people keep their properties.
“These predatory scams callously rob Americans of their savings and potentially their homes,” Geithner said.
The new measures are designed to detect scams earlier and include working with the financial sector to help them identify the signs of fraudulent companies.
“For millions of Americans, the dream of home ownership has become a nightmare because of the unscrupulous actions of individuals and companies who exploit the misfortune of others,” said Attorney General Eric Holder.
- Freddie Mac posts huge loss - Nov 04, 2011
- Fannie Mae, Freddie Mac prevented two mn foreclosures: Report - Dec 07, 2011
- Fannie Mac seeks $7.8 bn aid from US government - Nov 09, 2011
- Californians warned to beware of forensic loan audit scams - Feb 23, 2010
- US launches mortgage plan to stem housing crisis - Mar 05, 2009
- Spanish government prods banks to modify mortgages - Mar 11, 2012
- Obama's plan to help 3.5 mn homeowners (Lead) - Feb 02, 2012
- Delaware Attorney General Biden calls on BoA, JP Morgan Chase and Ally Financial to halt foreclosures - Oct 06, 2010
- Bank Of America Settlement Announced, Home Buyers To Be Compensated - Jun 08, 2010
- Obama launches plan to help families facing foreclosure - Oct 26, 2011
- More Than 40 Percent Drops Obama Mortgage-Aid Program - Jul 21, 2010
- Subprime Credit Card Offerings On A Rise - Jan 13, 2011
- Citigroup to suspend foreclosures till 17th January 2010 - Dec 18, 2009
- More than 2,700 Florida homeowners to receive Countrywide checks - Feb 16, 2010
- In Excess Of 40 pct. Of American Homemakers Leave the Mortgage Aid Program - Jul 21, 2010
Tags: bogus companies, borrowers, crackdown, downturn, eric holder, financial crisis, financial sector, fraudulent companies, home ownership, joint effort, misfortune, mortgage fraud, mortgage lenders, mortgage refinancing, other government agencies, poor credit, sub prime mortgages, timothy geithner, treasury secretary, us justice department