Mortgage Fraud: Not Worth It

Lately, it seems that there has been more than just a few headlines in the news regarding mortgage fraud – both right here in Maryland as well as in the national news. Because of the current housing crisis that the country is in, many people point to “mortgage fraud” as being one of the primary causes that caused the country to have the housing crisis. And although it may seem a little late, the regulatory bodies that regulate the mortgage markets have now started to crack down on mortgage fraud – and they are just now picking up steam.

From The FBI Website:

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

Mortgage Fraud in Maryland: It Still Happens

Some people think that mortgage fraud doesn’t really happen anymore, but it is alive and well. Chances are that some type of mortgage fraud is happening right here in Maryland, right now. If you or someone you know has witnessed any type of mortgage fraud, be sure to contact the FBI.