Sunday, March 30, 2008

Mortgage Fraud/Subprime Lending - Will Mukasey Appoint A Task Force

Will AG Mukasey appoint a task force to investigate and prosecute cases related to subprime and mortgage fraud? For right now it looks like Attorney General Mukasey has not made up his mind. (see Bloomberg here)

On one hand you see the practices used by foreclosure mills (NYTimes here) and you also see some mortgage fraud cases being brought throughout the United States. (see, e.g., here, here, and here).  And the Wall Street Jrl has an article today titled, HUD Secretary Expected to Resign. One has to wonder if this change might influence DOJ to create a task force.

Shouldn't there be a Mortgage Fraud Task Force?  After all, when the corporate scandals hit the news, we saw the Corporate Fraud Task Force, and when there was fraud after Hurricane Katrina there was the formation of the Katrina Fraud Task Force, and just this week Mukasey announced the formation of a "Safe Streets Task Force to combat gang violence in communities north of Los Angeles." (see here)  Individual jurisdictions are reacting to the mortgage crisis.(See Cleveland PlainDealer describing mortgage fraud task force in Cleveland here; Miami-Dade Mortgage Fraud Task Force; US Attorneys Office in the Western District of Pennsylvania here).  And the FBI is already in the loop (See FBI Launches Mortgage Fraud Task Force in the Nation's Capital)

So will we be seeing a DOJ Mortgage Fraud Task Force pretty soon?


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Posted by: Richard | Apr 29, 2008 10:12:46 PM

Shouldn't there be a Mortgage Fraud Task Force? Mortgage fraud is very common these days so we really need it these times to protect ourselves. The government should act about these. How could a country succeed if there are lots of perpetrators overpowering the mortgage industry?

Posted by: David Johnston | Sep 16, 2008 9:54:32 PM

America and Capitalism are both based on the freedom of choice. We as Americans and Capitalists should have the financial freedom to choose how we use our money, and we should be able to choose where we get a loan. The fact that certain states are banning a financial resource such as the payday loan industry is ridiculous. These states are taking away the availability of a loan to those who need money quickly, who don’t have the credit to attain one from a bank, who only need a few hundred dollars loaned instead of thousands. Don’t let the legislation take away your financial freedom and vote for your rights as an American citizen.

Posted by: Payday Loan Advocate | Oct 6, 2008 1:26:42 AM

I visited this blog first time and found it very interesting and informative.. Keep up the good work thanks..

Posted by: Van Sales | Jul 3, 2009 11:30:56 PM

interesting read. but I dont think we will be seeing a DOJ mortgage fraud task force

Posted by: hurstville mortgage broker | May 4, 2011 2:59:33 AM

I don't think we will see a task force but isn't the government already doing this with the new laws in place. We can't even make loans anymore anyway..

Posted by: Kyle (Starwest Mortgage Guy) | May 16, 2011 6:53:28 PM

Another task force to appease the taxpayers...let's see what they accomplish.

Posted by: Richard Ontolchik | Feb 3, 2012 9:09:24 PM

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