FBI Cracks Down on Mortgage Fraud

The FBI on Thursday announced that it had charged over 400 individuals with mortgage fraud since the beginning of March as part of a nationwide crackdown on questionable mortgage practices that stem from the country's housing crisis.

The FBI attributes the losses to homeowners and other borrowers who were victims in the schemes at over $1 billion.

Addressing the press at a news conference, Deputy Attorney General, Mark Filip said, "Mortgage Fraud poses a significant threat to our economy, to the stability of our nation's housing markets and to the peace of mind of millions of American homeowners."

Filip's follows an announcement earlier in the day that two former hedge fund managers from Bear Stearns were arrested on suspicion of misleading investors about a fund that invested in sub-prime loan and collapsed at a cost to investors of $1.4 billion. The pair are the first prominent Wall Street figures to be charged and could trigger a crackdown on other Wall Street executives.

The FBI currently has 19 fraud investigations involving large financial corporations under the name "Operation Malicious Mortgage."