Mortgage fraud is any type of misrepresentation relating to property or potential mortgage loan. When someone lies intentionally or omits information at any time during the mortgage application and approval process, that is fraud. This type of fraud can be committed by individual borrowers or industry professionals.
Fraud for housing is fraud committed by the borrower. The borrower misrepresents income or assets for the purpose of acquiring a home.
Fraud for profit is committed by the industry professionals or lenders. This involves collusion with appraisers, mortgage brokers, bank officers and others in the industry. The intent is to steal cash or equity from homeowners.
Penalties for mortgage fraud
Depending on the value of the loan, the penalty for a federal mortgage fraud conviction can be steep. With a possible prison sentence of 30 years and a fine of up to $1 million, you need representation that is knowledgeable and experienced in mortgage and real estate fraud.
Defense for mortgage fraud
There must be intent to defraud to be charged. If a mistake was made, but it can be proven that it was an error and not an intentional misrepresentation, you can get the case dropped.
What do I do if I am charged with mortgage fraud?
Reach out to Daniel immediately if you have been charged with mortgage fraud. The consequences are severe and the cases are complex.