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US cracks down on mortgage fraud
US authorities have charged 530 individuals over the past year for allegedly preying on distressed homeowners in criminal schemes that cost the victims more than $1bn in losses.
The criminal charges are the result of a year-long project by US authorities, called the Distressed Homeowner Initiative, to focus on crimes targeting homeowners who are behind on their mortgages payments and facing foreclosure. The Department of Justice said more than 73,000 homeowners were affected by the alleged schemes.
In a typical scheme, the DoJ said, the alleged fraudster promised the homeowner that, in exchange for a fee, foreclosure could be prevented by selling the mortgage to investors. But in the end the homeowners risked losing their homes, it said.
