Bipartisan push to stop real estate fraud

A bipartisan push is under way in the Senate to spend more money to stop mortgage scams.Sens. Charles Schumer, a Democrat, and Jon Kyl, a Republican, proposed legislation on Tuesday that would award up to $200 million to state and local prosecutors to go after real estate fraud.The money would be awarded as competitive grants to prosecutors’ offices to hire new investigators, accountants and attorneys. Advocates say states have been unable to prosecute many troubling cases because of a lack of staff and other resources.“The housing crisis has spawned a cottage industry of refinancing and foreclosure prevention scams,” Schumer said in a statement. “This bill will put a stop to the criminals who are trying to swoop in and take advantage of desperate homeowners.”As a New York senator, Schumer represents Wall Street but has championed such politically popular issues as reducing foreclosure rates.Kyl, a conservative, has taken up consumer rights issues such as identify theft. His home state of Arizona has experienced some of the highest foreclosure rates in the country.Their legislative proposal represents a rare show of bipartisanship in a Congress divided on President Barack Obama’s plan to rewrite the rules governing financial institutions.Democrats are advocating the creation of a new agency dedicated to consumer protections. Republicans oppose it, saying the measure would be too burdensome on banks.