Federal Criminal Defense Lawyer

Mortgage fraud is a serious crime. It is a term used to describe a broad variety of criminal actions where the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known the truth. In federal courts, mortgage fraud is prosecuted as wire fraud, bank fraud, mail fraud and money laundering, with penalties of up to thirty years imprisonment.

Some examples of mortgage fraud are:

  • Occupancy fraud: Is where the borrower wishes to obtain a mortgage to acquire an investment property, but states on the loan application that the borrower will occupy the property as the primary residence or as a second home.
  • Fraud for profit: Scheme which involves multiple parties such as mortgage lending professionals, in a financially motivated attempt to defraud the lender of large sums of money.
  • Employment fraud: Is when a borrower claims self-employment in a non-existent company or claims a higher position such as a supervisor or manager in an existing company, to provide justification for a fraudulent representation of the borrower’s income.
  • Income fraud: Occurs when a borrower overstates his/her income to qualify for a mortgage or a large loan amount.
  • Failure to disclose liabilities: Borrowers conceal certain obligations, such as mortgage loans on other properties or new credit card debt, to reduce the amount of monthly debt declared on the loan application.
  • Appraisal fraud: Is when a home is appraised higher or lower than the actual value.
  • Cash-Back Schemes: Occurs when the true price of a property is illegally inflated to provide cash-back to transaction participants.
  • Shotgunning: Occurs when many loans for the same property are obtained at the same time for a total amount greater in excess of the actual value of the property.
  • Identity Theft: Occurs when a person uses the identity of another and uses that identity to obtain a mortgage without the knowledge or permission of the victim.

Even if you have not been formally charged with a crime, attorney Hernandez can intercede and work to protect your rights and interests through the entire investigation by federal law enforcement. Involving an attorney as early in the process as possible is important if you are to have the best opportunity of successfully fighting your charges and avoiding a conviction. Due to the difficulty of the cases and the probable sentences that attach, it is essential that you contact Mr. Hernandez. Whether you are a buyer, seller, or real estate professional accused of mortgage fraud, you deserve competent legal counsel. Contact Mr. Hernandez for your free initial confidential consultation.

For more information and your free consultation contact attorney Armando Hernandez today at 305-442-2590.