The FBI Investigates Indymac for Mortgage Fraud – Next Please!

by Moe Bedard on July 17, 2008 · 2 comments

in Home Loan News, Predatory Lending

When it rains it pours and when a bank fails, the FBI is going to find out why.

The facts are that the fraud and financial crimes ran rampant from all sides of the mortgage and real estate equation.

From the loan officers, appraisers, Realtors, notary publics, underwriters, account executives, managers, investors, brokerages, borrowers and the list can go on and on into eternity. But when it all comes down to finding the master minds of this fraud and world wide ponzi scheme, you can look no further than the king pins. The Don’s, Mozilo’s, the big wigs and the so called “untouchables” of the corporate world.

Also known as the banks.

This theory and goal of getting the big fish (the maestro of the crime or orginator of the drugs) is the same as in the crime world or drug wars.

The FBI and the DEA do go after the small time users and dealers (millions of them already), but it’s all done with one goal is mind, to use that little fish to catch the bigger fish and then the fisherman who caught that fish is reeled in and now the fisherman chain is broken and the whale is now on the line.

The whale is the banks folks.

I think the FBI has figured out that you can’t have millions of dying users (foreclosed homeowners) without someone who is fully responsible for selling users (borrowers) this toxic and deadly drug. Excuse me, I mean mortgage.
 
Think about this. Johnny gets sick at McDonald’s from eating a tainted burger. Immediate a nation wide recall of millions of pounds of beef is issued and warning permeate the news outlets. Recall, Recall, don’t eat burgers, Johnny got sick and we can’t have that. He’s fine now, but we are putting this company out of business for one stinking burger and we will make sure this never happen again.
 
Don’t get wrong, I really do love Johnny and hamburgers, but there is something terribly wrong in this country when millions of people are suffering, many committing suicide,murders, economic blithe and it’s all over a tainted product (Toxic loans and homes) sold to consumers as the American Dream and here we sit, still talking about it as millions suffer.
 
Only in America.

CNN:

WASHINGTON (CNN) – The FBI is investigating Indymac Bancorp for fraud, a source tells CNN.

A source tells CNN that the FBI is investigating California-based Indymac Bancorp.

A source tells CNN that the FBI is investigating California-based Indymac Bancorp.

The California-based bank was taken over by federal regulators last week.

Indymac’s collapse was the second-largest bank failure in U.S. history.

A source said the federal government is looking into whether the bank engaged in fraud when it made home loans to high-risk borrowers.

The source said the investigation is focused primarily on the company, not individuals.

Meanwhile, Josh Hochberg, the former head of the U.S. Justice Department’s fraud section, said that any investigation of Indymac would probably look into whether the bank used false information to give loans to people who wouldn’t have otherwise been eligible.

“I would suspect they are looking at bad appraisals, bad underwriting, which would mean false statements on loan applications, some of which require federal forms to be filled out — so they can be prosecuted for the false statements,” he said. “I would also suspect they would look at false statements to the investing community for securities fraud violations.”

Read more from CNN

 

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Mortgage Reviewer » Blog Archive » The FBI Investigates Indymac for Mortgage Fraud - Next Please!
July 17, 2008 at 11:43 am

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1 Marie Cresta July 24, 2009 at 8:50 pm

I had Indymac as my mortgage company and lost everything. They gave the criminal that I was with(his credit was bad and I didn’t know)a mortgage with me. Is there anything that I could do legally.

Thank-You
Marie

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