US Atty Gen Launching Investigations
According to MSNBC, a massive investigation will soon be launched by the US Attorney General’s office of banks and subprime lenders as they relate to the mortgage crisis. “I think we are going to see some fairly dramatic results in the near future,” U.S. Attorney Thomas O’Brien told The Associated Press. “Mortgage fraud is an extremely important issue to me and to the people of this district.”
Countrywide, IndyMac and New Century are currently under investigation by a grand jury and it sounds like more will be joining them. Reports indicate that the investigation will be done as quickly as possible so as not to drag it out for several years and to me, the goal appears to be to indict those who committed criminal acts of fraud.
But What About…
I have mixed feelings about it as it could turn into a witch hunt slash blame game but on the same hand, for the individuals and companies that knowingly defrauded homeowners (innocent or otherwise) should be weeded out from the responsible lenders that keep the housing industry afloat.
This casual observer wonders if the US Attorney General will make the 2008 election year October Surprise a similar raid on Congress and the Senate along with the halls of Fannie Mae and Freddie Mac, given that this is what the people see as the epicenter of this mortgage crisis.