FBI probes surge in mortgage fraud

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The agency's director Robert Mueller told Congress: "We've had a tremendous surge in cases related to the subprime mortgage debacle."

FBI spokesman Stephen Kodak added: "We've always said it was a fluid number. It could change at any time."

The bureau has publicly acknowledged only one company as involved - Doral Financial Corp. The largest US mortgage lender, Countrywide, is also said to be under investigation, although the FBI has refused to comment and the company says it is unaware of any investigation.