Holder Asked To Meet With Three Senate and House Democrats Regarding Federal Audit
A meeting with Eric Holder, the U.S. attorney general, has been required by Three Senate and House Democrats to talk about the federal audit the Justice Department has embellished its examination of mortgage fraud and made a low-priority crime.
In a letter sent to Holder, Reps. Maxine Waters (D-Calif.) and Elijah Cummings (D-Md.) and Sen. Elizabeth Warren (D-Md.) said they were concerned about these discoveries. However, they did not publicly ask for a congressional hearing.
A report released by the Justice Department’s inspector general said the agency did not make mortgage fraud a priority that they stated to the public about going after financial fraud cases, but most especially, mortgage fraud cases.
Auditors learned that the amount of agents actually looking at mortgage fraud and the total number of pending cases dropped in 2011 even though Congress gave the FBI $196 million between 2009 and 2011 to investigate the issue.
Lawmakers told Holder in the letter that it questions just how committed the department is in investigating and prosecuting crimes like loan-modification scams, abusive mortgage servicing practices and predatory lending.
Mortgage fraud is one reason the financial crisis happened back in 2008, as lenders and brokers were fabricating documents with homebuyers exaggerating their incomes and hiding debts. The schemes have turned now toward loan-modification and foreclosure-rescue scams along with other techniques to scam consumers.
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