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FDIC braced for surge in mortgage fraud

By Saskia Scholtes in New York

Published: March 4 2009 00:50 | Last updated: March 4 2009 00:50

The Federal Deposit Insurance Corporation is pursuing criminal cases over mortgage fraud involving potential losses of $7.5bn, and investigating thousands more complaints, Sheila Bair, the agency’s head has revealed.

Ms Bair on Tuesday said the FDIC was preparing for a surge in civil cases against mortgage brokers and other third parties that had defrauded lenders that had subsequently failed.

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