twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.

Hundreds Indicted for Foreclosure Rescue Schemes

Government announces results from Distressed Homeowner Initiative

Oct. 9, 2012

By Mortgage Daily staff

Hundreds of criminal defendants allegedly responsible for more than $1 billion in losses have been prosecuted by the federal government over the past year for allegedly committing crimes against distressed borrowers. In addition, hundreds more defendants were hit with civil actions.

On Tuesday, the government released results from its Distressed Homeowner Initiative, the "first-ever nationwide effort to target fraud schemes that prey upon suffering homeowners."

The initiative was launched on Oct. 1, 2011, by the Federal Bureau of Investigation and ended with the federal government's fiscal year on Sept. 30. It was launched to help streamline and advance investigations and prosecutions. The FBI is a co-chair of the Financial Fraud Enforcement Task Force's Mortgage Fraud Working Group.

Fraud targeting distressed homeowners was the focus of the initiative. Related schemes involve collecting huge up-front fees to help prevent foreclosures or transferring title from the borrower to someone connected to the defendants. Loan modification schemes where fees were collected up-front by falsely promising to negotiate loan modifications were also targeted.

A joint announcement from the Department of Housing and Urban Development, FBI, Federal Trade Commission and Justice Department indicated that the initiative yielded 530 criminal defendants who were charged in 285 federal criminal indictments or informations. Among the defendants were 172 executives.

More than 73,000 borrowers allegedly victimized by the defendants suffered losses estimated at more than $1 billion.

Another 110 civil cases were filed against 153 defendants by the Justice Department's U.S. Trustee Program, the FTC and the Consumer Financial Protection Bureau. Defendants in the actions often made false or abusive filings in bankruptcy court to avoid foreclosure. Those cases involved more than 15,000 victims who suffered more than $37 million in losses.

State attorneys general filed criminal cases against 51 defendants who allegedly caused $2 million in losses. States also filed at least 104 civil enforcement actions against 125 defendants who were responsible for approximately $5 million in losses.

One California foreclosure-rescue scheme prosecuted by the U.S. Attorney's Office for the Central District of California reportedly victimized 4,000 borrowers.

The government also touted actions by the Treasury Department's Office of Financial Stability's Antifraud Unit and the Office of the Special Inspector General for the Troubled Asset Relief Program against more than 900 mortgage rescue websites or web advertisers that were allegedly trying to confuse borrowers about their affiliation with the government.

"But this is only the beginning," U.S. Attorney General Eric Holder said in a related announcement. "In addition to traditional mortgage fraud crimes, the federal government also has committed substantial resources to identify and prevent other schemes that can negatively affect fragile housing markets -- including instances of fraud in the origination, securitization and servicing of mortgage loans; foreclosure public auction bid rigging; and discriminatory lending practices."

Holder highlighted how the Residential Mortgage-Backed Securities Working Group of the Financial Fraud Enforcement Task Force, through New York's attorney general, recently filed a civil complaint against JP Morgan Chase & Co. over alleged fraudulent representations by subsidiary Bear Stearns related to due diligence in the issuance of MBS.

next story

back to current headlines

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Loan Modification News
Loan modification activity, reports and legislation.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders