Oregon Public Broadcasting

Oregon's law enforcement community announced the results of a sweeping investigation into mortgage fraud Thursday. As Kristian Foden-Vencil reports, 39 people have been charged.

The investigation is part of a nationwide sweep. In Oregon, prosecutors say $80 million in fraudulent loans have been uncovered.

The U.S. Attorney for Oregon, Dwight Holton, says mortgage fraud has stolen the American dream from many people.

Dwight Holton: "We've targeted professionals who were instrumental in undertaking the fraud. Mortgage brokers, real estate agents, bankers, accountants and others. All the people who should have known better than to violate the public's trust."

Holton says the financial abuses of a few years ago are fading. 

But he warned, 'rescue fraud' is taking its place -- that is the fraud perpetrated against people in financial trouble who are trying to refinance to stay in their homes.

Nationally, over 1,200 people have been charged with fraud involving almost $2.5 billion in loans.