WASHINGTON -- The FBI is now actively investigating some 1,300 mortgage fraud cases, according to testimony given by FBI Director Robert Mueller before a Senate Appropriations panel last week. That number represented a "tremendous surge" in such cases and made it necessary for the agency to divert agents from other areas. More disturbingly, a larger number of those cases involve reverse mortgages. "That is something that we are seeing and may well need additional resources to address," Mueller told the panel.

Mueller informed that 204 agents are now investigating mortgage fraud cases. The FBI announced that active investigations of financial institutions increased to 19 from 14 and specifically named Countrywide as one lender under the spotlight.

Sen. Barbara Mikulski, (D-Md.) expressed concern over a possible "collapse of confidence" in lenders and the damaging effect it might have on an already wavering economy. "We need to not only help the American people with their foreclosures, but we have to make sure that we maintain confidence in the financial institutions," said Mikulski. "If we have a collapse of confidence, this could have even far more draconian effects on the economy."