Mortgage fraud is a White Collar financial crime. It involves dishonestly profiting from the mortgage process. Mortgage fraud is committed through making a misstatement or misrepresentation during the application process.
It can also be achieved through the omission of honest information or data that influences a mortgage decision.
If you’re under investigation for Mortgage Fraud and facing Federal Charges and Prison, contact us now so we help you pre-qualify for early release programs authorized by the Federal Bureau of Prisons.
There are two main types of mortgage fraud. Namely, this includes fraud for profit and fraud for housing. Fraud for profit is normally carried out by workers in specialized positions, such as bank officers or mortgage brokers. With their position, they believe they can steal money or equity from customers.
On the other hand, fraud for housing is a crime typically carried out by individuals who want to attain ownership of a house. This includes falsifying information such as income or assets to secure a dishonest loan application.
Mortgage fraud can be a state and federal crime in the US. The Fraud Enforcement and Recovery Act (FERA) was introduced in 2009, which allows for a federal investigation of serious financial crimes.
This means that any potential wrongdoing can be investigated by the Federal Bureau of Investigation (FBI). Mortgage frauds that cross state lines, are big in operation, or involve a mortgage lender are often federally investigated and prosecuted.
Fraud for housing can be prosecuted by the state. It is important to note that mortgage fraud will only be investigated and prosecuted if someone has the intention to commit fraud; there is not a crime committed through mistakes. There has to be a deliberate act by a professional or individual for profit or housing.
Mortgage fraud is a serious offense in the US and this means there are severe penalties in place if you are found guilty. It should not be dismissed as a minor crime.
Under federal laws, restitution may be sought to compensate the other party that suffered as a result of mortgage fraud. There can also be fines awarded of up to $1 million and imprisonment for individuals of up to 30 years.
The penalty you receive will be based upon your case. The penalties in states will differ depending on the severity of the crime and the location the crime is committed.
But you can expect large fines up to $100,000 or more and varying years in prison. Probation may also be another penalty for mortgage fraud.