“We will work to safeguard the homeowner at every
step of the process – from origination of a loan to its securitization, and we
will prosecute to the fullest extent of the law those who take advantage of
trusting California families,” said Attorney General Harris. “We are
setting a high bar for other states and we insist that homeowners be protected,
respected, and informed.”
The Mortgage Fraud Strike Force will operate out of Department of Justice
offices in Los Angeles, Fresno, San Francisco and Sacramento. Twenty-five
attorneys and investigators will work together in three teams:
– The consumer enforcement team will target scams in the consumer arena,
including predatory lending, unfair business practices in originating loans,
deceptive marketing, and loan modification and foreclosure consultant scams.
– The criminal enforcement team will prosecute criminal frauds associated with
the epidemic of mortgage scams, including fraudulent investment and money
laundering schemes related to mortgage lending or foreclosure relief.
– The corporate fraud team will target misconduct involving investments and
securities tied to subprime mortgages, as well as false or fraudulent claims
made to the state with respect to these securities.