The FBI has arrested over 400 US property market professionals on suspicion of mortgage fraud.
The frauds are thought to amount to $1bn and the arrests were made to help restore confidence in the housing and mortgage markets in the US.
The FBI has arrested a total of 406 people, an assortment of housing developers, estate agents and mortgage brokers, who are involved in 144 cases.
The US Government says mortgage fraud is a major threat to the nation’s housing market and economy, and the authorities are cracking down on the scams.
Many of the cases reportedly involved false employment records, misstatement of assets and inflating property values.
In the UK, the FSA and police forces have also launched a crackdown on mortgage related fraud, which the regulator says has become widespread as the UK mortgage market boomed.
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