Reply #2: 2004 CNN story - FBI warns of mortgage fraud 'epidemic'

[slipslidingaway]

http://www.cnn.com/2004/LAW/09/17/mortgage.fraud/


Seeks to head off 'next S&L crisis'

From Terry Frieden
CNN Washington Bureau

Friday, September 17, 2004 Posted: 5:44 PM EDT (2144 GMT)

"WASHINGTON (CNN) -- Rampant fraud in the mortgage industry has increased so sharply that the FBI warned Friday of an "epidemic" of financial crimes which, if not curtailed, could become "the next S&L crisis."

Assistant FBI Director Chris Swecker said the booming mortgage market, fueled by low interest rates and soaring home values, has attracted unscrupulous professionals and criminal groups whose fraudulent activities could cause multibillion-dollar losses to financial institutions.

"It has the potential to be an epidemic," said Swecker, who heads the Criminal Division at FBI headquarters in Washington. "We think we can prevent a problem that could have as much impact as the S&L crisis," he said..."