Recently, Yahoo! Finance interviewed William Black, a former regulator, who was counsel to the Federal Home Loan Bank Board during the S&L Crisis and blew the whistle on the “Keating Five” in 1989. He says investigations have shown fraud incidence of 50% at major subprime lenders like IndyMac and Countrywide.
Black notes it was only this year that the total number of FBI agents devoted to mortgage-fraud investigations rose to more than 200. By comparison, during the S&L and Enron investigations in the 1980s and ’90s, respectively, multiple task forces totaling hundreds of agents were employed.