A secondary component of the housing crisis appears to be the rise in home mortgage fraud. Numerous speculators and companies are taking advantage of desperate homeowners and then reaping the rewards when their home mortgages go into default. Although the property may not be worth much now, the speculators are banking on the fact that once the home mortgage crisis is over they will be able to make a tidy profit. According to the FBI numerous other kinds of home mortgage fraud are also rampant.Robert Mueller of the FBI was quoted as saying, “We are investigating more than 1,300 individual mortgage fraud matters. Perhaps more importantly, we have identified 19 corporate fraud matters related to the subprime lending crisis - cases that may have a substantial impact on the marketplace.”In addition to these frauds, many are wondering about the companies that offered subprime home mortgage loans in the past. Many consumers were lured into a low rate home mortgage that would switch to a variable rate down the road, and were told that they could always refinance before that happens. Now that the home mortgage crisis is in full swing many are finding this impossible.
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