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| FBI holds 406 for mortgage fraud | |
| (20 minutes later) | |
| The FBI says it has arrested 406 property market players as part of its crackdown on mortgage fraud. | |
| The arrests include estate agents and loan originators, who help homebuyers to take out loans. | The arrests include estate agents and loan originators, who help homebuyers to take out loans. |
| Reported mortgage fraud has soared in the past year, with the most common type being mis-statement of assets. | Reported mortgage fraud has soared in the past year, with the most common type being mis-statement of assets. |
| Earlier in the day, two former Bear Stearns managers in New York were arrested following the collapse of a fund linked to sub-prime mortgages. | Earlier in the day, two former Bear Stearns managers in New York were arrested following the collapse of a fund linked to sub-prime mortgages. |
| They are the first executives facing criminal charges following the crisis. | |
| Billion dollar losses | |
| The Justice Department said it was pursuing 144 cases against the 406 defendants. | |
| Sixty of them were arrested on Wednesday alone. | |
| The department estimated that the losses to homeowners and other borrowers from the mortgage frauds amounted to about $1bn (£500m). | |
| "Mortgage fraud and related securities fraud pose a significant threat to our economy, to the stability of our nation's housing market and to the peace of mind to millions of Americans," said Deputy Attorney General Mark Filip. |