What investigation did the DOJ initiate regarding mortgage fraud?

The investigation initiated by the Department of Justice (DOJ) regarding mortgage fraud primarily focused on claims against private lenders. This focus arises from the critical role that private lenders play in the mortgage industry and how their practices can contribute to broader issues of fraud within the housing market. Mortgage fraud often involves deceptive practices that can affect borrowers, investors, and the overall real estate market.

The DOJ's efforts are aimed at ensuring compliance with federal laws designed to protect consumers and maintain the integrity of financial markets. In the context of mortgage fraud, investigations typically scrutinize practices like false documentation, predatory lending, and the manipulation of loan terms, all of which can have significant repercussions for both individual borrowers and the economy at large.

The other options, while they may involve situations worthy of investigation, are not the primary focus of the DOJ’s mortgage fraud initiatives. Claims against state politicians or the Federal Government would involve different aspects of regulation and accountability, while issues surrounding real estate agents typically relate to practices within the transaction process rather than the lending process itself. Thus, the correct emphasis on private lenders underscores the critical need to address fraud directly linked to lending practices, which can significantly impact the market.