The FBI Presents: Everything You Wanted To Know About Mortgage Fraud But Were Afraid To Ask

Besides crushing owner’s equity and hitting home prices nationwide, the housing bubble saw an unbelievable amount of mortgage related crime than ever seen before.

The FBI has been warning of a mortgage fraud uptick since 2004, and have outlined the various ways that fraud can be committed in a presentation (via Public Intelligence).

From former Wall Street executives, to the low level house flipper, the FBI has it out for all of the potential criminals in the subprime crisis.

While this presentation was made in November 2008, it provides a look into the FBI’s thinking in terms of the mortgage fraud issue and was somewhat prescient in the days before subprime became national nomenclature.

What is the house really going to be used for?

You might be surprised...

It's all about property flippers.

Flippers now struggling.

Builders and developers are now getting in on the act.

Short sales being used too.

Scheming against the homeowner too.

Fraud booming, and this is only through 2008.

Losses also booming.

The FBI explains Sub-Prime loans.

And how they are approaching collapse.

Ah, and how a credit default swap works.

This is the result of mortgage fraud.

And it's not just neighborhoods that lose.

Subprimes impact on the economy.

Subprime failures started in 2006.

The great foreclosure surge.

The the arrests begin.

The FBI's 2004 warning.

Fraud cases surged during the late noughties.

Big problem states for fraud also hit hard by crisis.

A 2008 operation, and its successes.

Here's what the FBI grabbed.

Lighting bolts.

Indictments also spiking.

Here are all the culprits the FBI was/is investigating.

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