Distressed Homeowner Mortgage Fraud

Mollie Halpern: It’s a crime that’s hitting home for tens of thousands of people across the country. I’m Mollie Halpern of the Bureau, and this is FBI, This Week. Section Chief Timothy Gallagher of the Financial Crime Section…

Timothy Gallagher: We have seen a huge spike in the number of cases targeting distressed homeowners.

Halpern: More than 20 percent of all mortgage fraud cases this year involve schemes targeting those who are in a position to lose their homes. That’s a 300 percent increase from 2010. Craig Howland is the unit chief of the Financial Institution Fraud Unit…

Howland: As an investigator, it’s very tough when you get somebody who calls and says, “You know what? I just lost my home.”

Halpern: To confront these emerging schemes, the FBI launched the national distressed homeowner initiative. Together with its law enforcement and regulatory partners, the FBI is stopping the most egregious criminals in their tracks. So far, 530 individuals across the country have been charged with these particular mortgage fraud schemes for allegedly cheating more than 73,000 victims out of about $1 billion.

To learn more, visit www.fbi.gov.