***Over 400 Investment bankers arrested; www.youtube.com Following the third major “sweep” of the mortgage industry in four years, the US Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) announced on Thursday that it had arrested over 400 real estate industry players since March, dozens of them over the last two days, for incidences of mortgage fraud that have contributed to the housing crisis. Announcement of the arrests came at a Thursday afternoon Justice Department press conference conducted by Deputy Attorney General Mark R. Filip and FBI Director Robert Mueller. Filip said the arrests took place in Chicago, Atlanta, Miami, and suburban Maryland among other locations and those arrested included industry borrowers, loan originators, and real estate agents. 60 people were arrested on Wednesday alone with the round-up continuing. The sweep, code named Operation Malicious Mortgage, was the third major action that the Department of Justice has headed up since 2004 against mortgage fraud and related crimes. The most recent activity has resulted in 144 mortgage fraud cases in which 406 defendants have been charged since March 1. Cases were brought in every region of the country and in more than 50 judicial districts. The FBI estimates that approximately $1 billion in losses resulted from the mortgage fraud schemes employed in these cases. In general, mortgage fraud involves three distinct types of fraud; lending fraud, foreclosure rescue scams and …