Atlanta May Sue Mortgage Companies

Atlanta may take the first steps toward a lawsuit against mortgage lending companies blamed with driving up foreclosures through shady lending practices. The city council is set to consider a resolution Monday that would require the city to hire an attorney to investigate whether to file a lawsuit against mortgage lending companies and financial institutions. A report by foreclosure listing firm RealtyTrac this month named Georgia among the top 10 states in the nation for foreclosures during the first quarter of 2009. If Atlanta moves forward, it will join other cities like Baltimore which have turned to the courts to fight banks they blame for skyrocketing foreclosures.

(Associated Press)

Georgia 6th in the nation for fraudulent mortgages

Officials say Georgia has dropped from tops in the country in mortgage fraud to number six but remains a hotbed for fraudulent housing loans.

The U.S. attorney and head of the FBI division in Atlanta discussed the trends at a news conference Thursday as officials announced a nationwide crackdown in which 406 people have been charged since March 1, including seven in Atlanta on Wednesday.

The FBI estimates $1 billion in losses due to fraud related to the crackdown labeled "Operation Malicious Mortgage."

Greg Jones, special agent in charge of the FBI in Atlanta, said the bureau has arrested 60 people in Georgia over the past four years, involving millions of dollars in losses to lenders.

Ga could join national mortgage system

The mortgage meltdown has prompted some Georgia lawmakers to consider joining a national mortgage licensing system. The House is scheduled to decide whether to allow the state's banking department to join the system. It would allow the state to share information and make standard the licensing and application processes for mortgage brokers and lenders.

Beazer ends mortgage origination

Atlanta-based homebuilder Beazer Homes is getting out of giving out mortgages. Instead the company will offer its buyers mortgage services through Countrywide Financial Corp. Beazer also says it will stop homebuilding operations in several states. Beazer has been beset by turmoil in the housing industry that has caused its number of home closings to plunge. It cut 650 jobs, or 25 percent of its work force, in October, and suspended its quarterly dividend.