Operation Malicious Mortgage

The DOJ & FBI in a press conference have announced that they have arrested more than 400 real estate industry persons for incidences of mortgage fraud. These arrests were in Atlanta, suburban Maryland and Chicago among other locations & people arrested included loan originators, borrowers & real estate agents.

With this sweep, code named "Operation Malicious Mortgage" FBI has estimated that about $1 billion of losses resulted because of the fraud schemes that were employed. In these cases the most common type of mortgage frauds that were used were; forgery of documents, misstatement of assets or income, inflated appraisals & misrepresentation of mortgage buyer's intention of using the house as his primary residence.