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Fraudulent Lenders Face Tougher Penalties, as U.S. Mulls New SAR Requirements
By Matt Squire
printMortgage lenders will face greater scrutiny from law enforcement agencies and federal regulators following the passage of an anti-mortgage fraud bill and the announcement that further regulations may be coming. President Obama signed the measure, called the Fraud Enforcement and Recovery Act (FERA), on Wednesday. The act allocated additional funding to combating mortgage fraud and amends criminal statutes in an effort to give investigators and prosecutors more leeway in handling cases tied to fraudulent mortgages. Specifically, the law allows investigators to use a bank fraud law against fraudulent mortgage lenders that would otherwise be prosecuted for mail or wire fraud....
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