FBI investigate IndyMac for fraud: home loans for risky borrowers

IndyMac is under investigation by the FBI, due to the bank being involved in fraud for home loans that were made to risky borrowers. The report from the Associated Press is not that clear on how long the FBI have been probing the bank, but we do know that the investigation is for IndyMac as a whole and not just individuals.

It seems that troubled IndyMac just can’t keep out of the news, just last week the U.S. banking regulators had to seize control of the mortgage lender.

The FBI has not yet commented about the IndyMac investigation; however a spokesman did say “The FBI’s probe of corporate fraud in the subprime lending industry had risen to 21, from 19 in April.” No further details were added.

It seems that since the U.S. have been going through a bit of a mortgage crisis; there have been a number of subprime related complaints.

It seems that brokers and lenders have been doing all they can to try and boast the number of mortgages they can sell, and some will go to any length to try and supply a mortgage to a customer.

Related Articles

• IndyMac cutting 3,800 jobs & stopping most mortgage loans
• Fannie Mae and Freddie Mac shares fall more than 15%
• IndyMac firing half its employees: Prospect Mortgage gets retail branches
• Homeowners with original IndyMac loans are helped by the FDIC
• Countrywide sued as homeowners conned into taking out risky loans

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