Mortgage Fraud
Incorrectly reporting income, assets or debt in an attempt to fraudulently obtain a mortgage loan constitutes the criminal act of mortgage fraud. This is a federal crime, and a defendant can expect to face harsh prosecution in federal court. These charges are often filed in conjunction with
mail fraud,
wire fraud or
bank fraud, and a defendant may therefore face up to 30 years in prison and fines of up to $1 million if convicted.
When an individual includes false or exaggerated income on a mortgage loan application, when a property is appraised at a much higher value than it is actually worth, when an individual carries out any action with the purpose of defrauding a lender, buyer, seller, appraiser or other individual or company involved in the mortgage loan process, this is mortgage fraud and that individual may face severe penalties. Following are some specific examples of acts that may constitute this offense:
- Stating on a loan application that the buyer will occupy the property, when this is actually not the case.
- Misstating income on a loan application.
- Claiming self-employment or employment at a non-existent company in an attempt to obtain loan approval.
- Concealing debt or liabilities to lower one's debt-to-income ratio.
- Creating a complex scheme involving multiple buyers and sellers and mortgage professionals to defraud lenders.
- Intentionally appraising a property for more or less than it is worth (appraisal fraud).
- Obtaining a mortgage loan under another person's identity.
Even an attempt to commit mortgage fraud, if unsuccessful, may result in criminal charges.
With the state that the housing market is in, mortgage fraud is an area of primary concern for law enforcement agencies nationwide. If you have been targeted by a federal investigation or have already been arrested or charged, it is crucial to consult with a criminal defense attorney. You have rights, and these need to be protected to the fullest extent if you are to have any chance of avoiding a conviction and the serious penalties this may bring.
Use our online directory to find a criminal defense lawyer in your area who can answer your questions about mortgage fraud.
