Countrywide Financial Corp. has sued organizers of an investment group that allegedly duped people into taking out mortgage loans, the Wall Street Journal reports.
Federal and state authorities, according to the Journal, are investigating the alleged fraud, which involves about 100 people in the Martinsville Va. Area. Representatives of the borrowers say the alleged mortgage fraud may be the largest ever, involving about $80 million worth of fraudulent loans, the Journal said, with many of the loans currently in default.
Mortgage fraud losses rose to $1 billion last year, more than double form the year before according to the FBI.
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