Florida Attorney General: Mortgage Crisis/Fraud

October 12, 2008

Submitted by Florida Attorney General Bill McCollum

Mortgage fraud is wreaking havoc on our economy, and this week my office took aggressive steps to address the growing crisis. We reached a multimillion dollar settlement with Bank of America and Countrywide which will provide much-needed relief to thousands of Florida homeowners who are in untenable situations because of Countrywide’s lending practices. The agreement could provide nearly $1 billion in total relief to Florida homeowners alone.

My Office of Statewide Prosecution also filed criminal charges against an active mortgage fraud ring in South Florida, accusing the participants of more than $1 million in mortgage fraud against various financial institutions. If convicted, the people involved could face sentences ranging from 24 to 420 years in prison.

Mortgage fraud causes a ripple effect that creates many victims. The mortgage lenders take a financial hit that impacts their business, their customers and shareholders, neighborhoods suffer when homes go into foreclosure, and all of Florida’s citizens ultimately pay a price as property values and tax revenues drop.

The Attorney General’s Office will keep fighting on behalf of everyone affected by this type of illegal and destructive behavior. My Mortgage Fraud Task Force and Office of Statewide Prosecution are reviewing new information and complaints every day and we will pursue these cases and criminals to the fullest extent of the law.

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Written by William Reynolds · Filed Under News