Sen. Obama calls for mortgage fraud investigation
Tuesday, November 8, 2005
Printable FormatChicago Tribune
By Jeff Zeleny
WASHINGTON -- Sen. Barack Obama (D-Ill.) urged the Senate Banking Committee on Monday to launch an investigation into "the growing predatory practice of mortgage fraud," saying Congressional hearings should be held to determine whether new laws are needed to protect society's most vulnerable.
In a letter to Sen. Richard Shelby (R-Ala.), the chairman of the Committee on Banking, Housing and Urban Affairs, Obama questioned whether law enforcement and regulatory agencies have enough resources to enforce lending laws. He pointed to the findings of a Chicago Tribune investigation, which revealed mortgage fraud is disproportionately affecting poor and African-American residents.
Obama also directed the letter to Sen. Paul Sarbanes (D-Md.), the ranking Democrat on the committee.
"We have an obligation to protect the most vulnerable members of our society from falling prey to schemes that target their most significant asset -- their homes," Obama wrote to the senators. "This is particularly important when the proceeds of these fraudulent activities are used to fund illicit gang and drug activity."
The newspaper is publishing a series of reports this week highlighting the perils of mortgage fraud. The Tribune's findings were troubling, said Obama, who asked the committee to "hold hearings as soon as possible."