Justice Department Gathering Data On Mortgage Industry
The Justice Department is gathering evidence to determine if it needs to create a special task force to investigate possible wrongdoing in the mortgage lending industry, Michael B. Mukasey, the attorney general, said Friday. The F.B.I. is in the middle of a criminal investigation focusing on 17 firms that may have engaged in corporate fraud, an F.B.I. official confirmed this week. In an interview with reporters that covered a range of topics, Mr. Mukasey said the Justice Department was “trying to see what prosecutions are being and can be brought and figuring out whether there is a larger criminal story to be told here.” Asked by reporters whether his agency was considering appointing a task force, similar to the one formed in late 2001 to investigate the collapse of the energy giant Enron, Mr. Mukasey said: “No. In order to have a task force you need to identify the task. That is what we are doing now.” American mortgage foreclosures have been rapidly expanding in recent months, spreading from subprime lenders to the housing market over all. Federal law enforcement officials have been looking at industry fraud and lax documentation in loan applications, which allowed for loans based on false values or income. The crisis has shaken Wall Street and major financial institutions, including Bear Stearns, which collapsed and was sold to JPMorgan Chase last weekend. Before the subprime lending scandal began unfolding, the government was mostly prosecuting individuals for mortgage fraud, Justice Department officials said. Many people who bought their homes during the housing boom with little or no down payment and low introductory interest rates now face foreclosure because their loan rates have adjusted significantly higher. The government is investigating whether many of these adjustable-rate mortgages were sold under fraudulent pretenses.
[01]
http://www.nytimes.com/2008/03/22/business/22subprime.html?_r=1&ref=business&oref=slogin
[02]
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/21/AR2008032103130.html?hpid=topnews
[03]
http://online.wsj.com/article/SB120614819289156741.html?mod=googlenews_wsj
[04]
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/20/AR2008032003252.html
[05]
http://www.thestate.com/business/story/352286.html
[06]
http://www.star-telegram.com/business/story/540832.html
[07]
http://www.centredaily.com/business/story/479256.html
[08]
http://www.baltimoresun.com/news/local/politics/bal-te.md.foreclose21mar21,0,1207550.story
[09]
http://columbiabusinesstimes.com/1119/2008/03/21/housing-crisis-hits-home
[10]
http://news.bbc.co.uk/2/hi/americas/7297093.stm
[11]
http://news.bbc.co.uk/2/hi/business/7289292.stm
[12]
http://news.bbc.co.uk/2/hi/business/7284101.stm
[13]
http://news.bbc.co.uk/2/hi/business/7281719.stm
[14]
http://news.bbc.co.uk/2/hi/business/7277606.stm
