FDIC: Mortgage Fraud Epidemic Revealed

Friday, March 6, 2009 11:07 AM

By: Michael Kling

The FDIC is grappling with a wave of mortgage fraud cases, FDIC Chief Sheila Bair told the National Association of Attorneys General.

It also raises concerns that newly relaxed mortgage standards designed to reignite the housing market will only spark more fraud in the future.

Cases under investigation involve potential losses of more than $7.5 billion, and many more cases are expected to open. “That's big money,â€