According to Law360, two attorneys, an appraiser and two other individuals were indicted by New York Attorney General Eric Schneiderman for allegedly exploiting first-time homebuyers and institutional lenders in a mortgage fraud ring.

In the alleged scheme, the defendants advertised a rent-to-own opportunity in which first-time home buyers who had low credit were given the chance to own a home with no down payments or closing costs, the attorney general says.

"Preying on innocent New Yorkers who want nothing more than an opportunity to buy their own home is repugnant," Schneiderman said in a statement Thursday. "This office will continue to work diligently and collaborate with state and federal partners to ensure those who would exploit the system for their own financial gain feel the full weight of justice."

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