mortgage fraud

Federal and state authorities on Thursday said they were beefing up efforts to protect consumers against fraud, particularly ones that prey on homeowners at risk of foreclosure. 

Attorneys general from 12 states attended the meeting with Treasury Secretary Tim Geithner and others, according to a news release. Many of them said that mortgage rescue scams have become a serious problem in their states.

As it became known on Monday, ten state attorneys general and four federal agencies are forming a task force to fight mortgage fraud.

According to the statement issued on Monday by Washington state Attorney General Rob McKenna, targets of the enforcement effort include equity skimming, bogus foreclosure rescue, straw purchases and unethical lending.

Federal prosecutors have accused 37 people and 4 business of mortgage fraud. Those charged people include mortgage brokers, loan officers, appraisers and the executive of a title company. There is no relation among the cases.

According to authorities lenders in those schemes lost millions of dollars after loans went to default and properties were foreclosed upon.

FBI Director Robert Mueller said on Wednesday that in December the agency created the National Mortgage Fraud Team at headquarters in a move to help field offices in their pending investigations. Now the new department is establishing priorities on mortgage fraud and is using undercover operations, wiretaps and computer technology to get evidence of economic crimes.