There are certain types of crimes that come with elevated penalties. Federal crimes are serious criminal offenses that can result in penalties that may include extensive time behind bars, expensive fines and other penalties that can change the course of your life. It is important to know what you are up against when facing any type of federal crime, including mortgage fraud. This type of crime can take many different forms, but there are serious penalties associated with each.
When facing accusations or formal charges of mortgage fraud, you will benefit from knowing how to fight back. An understanding of the charges you are facing allows you to develop a defense strategy that is meaningful and effective. While mortgage fraud may not seem like a serious crime, it is something that can change your entire future, and it is important to take it seriously.
Actions that count as mortgage fraud
There are a range of actions that count as mortgage fraud. The intent of any type of mortgage fraud is financial gain or to gain some type of advantage. It could include submitting fake W-2s with the loan application, inflated property appraisals and more. The buyer, seller, mortgage broker or other type of real estate professional could commit mortgage fraud. Examples of mortgage fraud include:
- Property flipping — One purchases property, appraises it at an inflated value and then resells it for more than the property is truly worth.
- Fraudulent supporting loan documentation — This includes submitting false pay stubs, altered W2s or falsifying any documents for a loan application.
- Stolen identity — This is when the buyer uses the financial information and identity of another individual to apply and qualify for a loan.
- Inflated appraisal — This is when one intentionally inflates an appraisal in order to sell the property at a higher price than what it is worth.
Any type of mortgage fraud is a federal crime. Even though these crimes do not involve an element of violence, the federal government prosecutes these offenses to the fullest extent of the law. If you are under investigation for this type of crime or you are already facing these white-collar criminal charges in California, you may benefit from seeking insight regarding your options and how you can protect your future interests.