Loan Fraud

Loan fraud, or mortgage loan fraud, is a federal crime. A defendant convicted of this offense may face a sentence that includes imprisonment, fines, restitution, probation and more. A loan fraud accusation and/or conviction will also likely impact an individual's reputation and business opportunities, affecting current and future business ventures and overall financial stability.

How is loan fraud committed?

Misstating, misrepresenting or omitting information on a loan application, loan document or in mortgage documentation are all ways that an individual may commit loan fraud. A borrower, homeowner, buyer, seller, broker, real estate agent, appraiser or lender may face loan fraud charges when they carry out a loan transaction with the intention of committing fraud. The crime of loan fraud must involve criminal intent, meaning unintentional or accidental conduct should not result in criminal charges. A borrower who accidentally includes the wrong information on an application, for example, should not face loan fraud charges. The act must have been willful and intentional, for the purpose of committing or attempting to commit fraud.

The following are examples of ways in which loan fraud may be committed:

• Forging documents that support the loan, such as bank statements or tax returns.
• Forging the signature of a buyer, seller or other party on loan documents.
• Overstating assets or income on a loan application.
• Overstating the value of a property.
• Failure to fully disclose the terms or conditions of a loan.

Loan fraud is taken very seriously by the government, and federal agencies are aggressive in their investigation and prosecution of this and related offenses. If you have discovered that you are under investigation for fraud or have already been criminally charged, you need to move quickly to involve a criminal defense lawyer who can get to work in protecting your rights and interests.

To find a criminal defense attorney in your area, click here.