It was most likely banks in NEW YORK that perpetrated this fraud.
Notice they keep saying that the 'lenders' didn't properly process the loans.
LENDERS = BANKERS
Opening Statement Senator Hillary Clinton; EPW Hearing; September 24, 2002
Private non-profit entities must be able to get help quickly. In New York and communities across the country, private non-profit entities provide extremely important services that aren’t defined as “critical” under the Stafford Act as amended in 2000. We need to ensure that there is administrative flexibility so that FEMA doesn’t have to use its valuable, though limited, resources finding creative solutions for critical non-profits.
Oh, Hillie....