More sub-prime investigative hindsight


7 years too late - again.


The FBI is examining 14 companies for possible fraud in the wake of the subprime mortgage crisis.

The FBI did not identify the companies…

Power and other senior officials said the number of suspicious activity reports they review for potential investigation skyrocketed from 3,000 in fiscal year 2003 to about 35,000 in 2006, to 48,000 in 2007. And in the first quarter of fiscal year 2008, Power said, officials have already received 15,000 such reports, putting them on pace to receive 60,000 complaints this year…

Kenneth Kaiser, FBI assistant director for the Criminal Investigative Division, said the FBI has developed an initiative focused on subprime mortgage loan fraud and is working with investigators from other federal agencies.

Officials identified the states that are the “top 10 mortgage fraud hot spots” as California, New York, Texas, Florida, Georgia, Utah, Illinois, Indiana, Ohio and Michigan.

Fraud is about the only possible charge. During the boom and bust in sub-prime mortgages, Congress and the White House refused to apply the same regulations that apply to bank mortgages - to the storefront hustlers and their investors.

They can’t be indicted for breaking laws that didn’t exist.

Posted: Wed - January 30, 2008 at 10:08 AM