WASHINGTON — Failed lender IndyMac Bank is among nearly two dozen banks under scrutiny by the Federal Bureau of Investigation for possible mortgage fraud, U.S. officials said. The big Pasadena, Calif., bank was seized by regulators last week, the third-largest bank failure in U.S. history. It specialized in home loans to borrowers who lacked full documentation for their income or assets and have a higher default rate than other loans. The IndyMac investigation began shortly before the bank was seized last week, a law-enforcement official said. In a statement Wednesday, the FBI said the number of banks under investigation for mortgage fraud is now 21.
“We receive information from a variety of sources on a daily basis, and we have an obligation to review each allegation on its merits,” the bureau said. “Given the volatility of today’s subprime market, we have seen an increase in subprime-related complaints.” Few major lenders under investigation have been identified. One of them is Countrywide Financial, once IndyMac’s parent company, which has since been acquired by Bank of America Corp. Countrywide has said it isn’t aware of an investigation. More
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