Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in federal prison or $1,000,000 fine, or both. It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution.
Some of the applicable Federal criminal statutes which may be charged in connection with Mortgage Fraud include:
- 18 U.S.C. § 1001 – Statements or entries generally
- 18 U.S.C. § 1010 – HUD and Federal Housing Administration Transactions
- 18 U.S.C. § 1014 – Loan and credit applications generally
- 18 U.S.C. § 1028 – Fraud and related activity in connection with identification documents
- 18 U.S.C. § 1341 – Frauds and swindles by Mail
- 18 U.S.C. § 1342 – Fictitious name or address
- 18 U.S.C. § 1343 – Fraud by wire
- 18 U.S.C. § 1344 – Bank Fraud
- 42 U.S.C. § 408(a) – False Social Security Number
Chambers County Abstract Co., Inc., its employees, its management, its directors and its shareholders take a firm stance against mortgage fraud. We maintain a close relationship with federal, state and local law enforcement when it comes to fraud detection and reporting. If we suspect fraud in a transaction we will report it – no ifs, ands or buts.
Mortgage Fraud Links
FREDDIE MAC – Avoiding Mortgage Fraud
Layman’s guide to Mortgage Fraud, including examples and links to assistance.
MBAA-MBA Fights Mortgage Fraud
Complete one stop web sites for mortgage fraud information and news. Links to the FBI and reports by the Mortgage Asset Research Institute reports on Mortgage Fraud.
A comprehensive overview of mortgage fraud in the US, Including links to news, real stories, and statistics.
Information on reporting mortgage fraud to law enforcement as well as news regarding mortgage fraud.
National Association of Realtors – Field Guide to Mortgage Fraud
A compendium of mortgage fraud resources. Includes links to both federal and state law enforcement and regulators. Consumer friendly explanations of mortgage fraud to assist consumers protect themselves.
Allows consumers to track changes to their credit history and prevent erroneous and fraudulent transaction using their identity.
FTC – Identity Theft
A comprehensive web site on identity theft and its impact on consumers. Provides assistance to consumers who suspect they are the victim on identity theft.
FTC – Understanding Mortgages
Provides information about mortgages and the home buying process. Helps consumers defend themselves from being the victims of mortgage and foreclosure assistance scams.
BITS – Mortgage Fraud Prevention: An Education and Awareness Toolkit for Consumers
A report on mortgage fraud and how to avoid becoming a victim. Gives examples of common schemes and tips for obtaining a legitimate mortgage.
HUD – Don’t Be A Victim Of Loan Fraud
Tips to assist consumers from being the victim on loan fraud. Provides 11 tips to being a smart mortgage consumer.
Treasury Department FINCEN – Mortgage Fraud
News releases, reports, speeches, and testimony from the Financial Crimes Enforcement Network
Information in this article is proved for general educational purposes only and is not offered as legal advice upon which anyone may rely. The law changes. Legal counsel relating to your individual needs and circumstances is advisable before taking any action that has legal consequences. Consult your tax advisor as well.