Industry NewsMortgage

FBI: 485 arrests in mortgage fraud ‘sweep’

'Operation Stolen Dreams' targets alleged $2.3B in losses

In what's become an annual tradition, the FBI announced the results of a "mortgage fraud sweep" Thursday, hours after releasing statistics documenting the rise in suspected cases of mortgage fraud reports filed by lenders.The sweep, "Operation Stolen Dreams," has produced 485 arrested since its launch on March 1, and criminal charges against 1,215 defendants who are allegedly responsible for $2.3 billion in losses, the FBI said.In releasing its annual report on mortgage fraud, the FBI said reports by financial institutions of incidents of suspected mortgage fraud climbed 13 percent during the six months ending March 31, to 37,739, compared to the same period a year ago.The FBI said that as of April 2010, it had 3,029 pending mortgage fraud cases, 68 percent of which involved dollar losses totaling more than $1 million (see story).In announcing Operation Stolen Dreams, the FBI said the sweep was focused not only on federal criminal cases, but also on civil enforcemen...