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Mortgage fraud can take many forms

by | Jun 29, 2016 | Uncategorized |

For most people, buying a home is the biggest purchase they’ll ever make.  But the stress of meeting bank standards for a loan can put a lot of pressure on a potential home buyer, a mortgage banker, appraiser, or a broker involved in the transaction.  Fudging facts to make a deal work in return for a considerable pay day is a constant concern.

Illegally representing information on paperwork for a home loan constitutes mortgage fraud.  It is sometimes known by other names including bank fraud, wire fraud or conspiracy.

Because crimes like these have become more prevalent than ever, in 2009, the federal government enacted The Fraud Enforcement and Recovery Act, expanding the enforcement powers concerning mortgage fraud laws.  Federal penalties under FERA can now reach up to $1 million in fines and up to a 30-year prison sentence.  Those who are convicted of mortgage fraud may also be liable for monetary damages if any are suffered by a lender.

Mortgage fraud attorneys are no strangers when it comes to defending clients for various types of mortgage fraud, which can include:

Property flipping –involves buying a house, having it appraised at an inflated and false value, and them promptly selling it.

Loan documentation fraud – takes place when an applicant submits altered or forged financial documents such as paystubs or tax returns.

Straw buyers – a buyer uses another person’s name and credit history to purchase a home while remaining hidden.

Stolen identity – a form of identity theft where a person’s name and credit history are used without their knowledge.

Inflated appraisal – an appraiser colludes with a mortgage broker to raise the appraisal value that will make it possible to match the buyer’s offer.

Ryan Garvey Attorneys proudly serves the cities of Phonix, Scottsdale, Glendale, Tempe, Mesa and surrounding Arizona communities.