California Mortgage Fraud Arrests on the Rise

According to the FBI, “mortgage Fraud is one of the fastest growing white collar crimes in the United States”. Mortgage Fraud is defined as a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan.

Generally, there are two types of Mortgage Fraud: fraud for property and fraud for profit.

 

Fraud for Profit generally involves multiple loan transactions with several financial institutions. Typical “Fraud for Profit” schemes include numerous misrepresentations including: overstated income, assets or collateral, overstating length of the borrower’s employment, providing fictitious employment records, etc. Often the borrower’s debts and credit history are not fully disclosed. In fact, the borrower’s credit history is often altered. The borrower may assume the identity of another person (referred to as a “straw buyer”). The borrower may erroneously state that he intends to use the property for occupancy when she actually intends to use the property for rental income. The borrower may be purchasing the property for another party. Down payments either do not exist or may be borrowed and disguised with a fraudulent gift letter. Lastly, the seller’s may be fictitious agents operating under assumed identities.

Appraisals have also had a crucial role in most fraud for profit schemes. Appraisals almost always list the property as owner-occupied. The property value is overly inflated (faulty appraisal) to increase the sales value to make up for no down payment and to generate cash proceeds in fraud for profit.

However, with the complexities involved in such schemes, allegations of mortgage fraud can be difficult to prosecute. The federal authorities have virtually unlimited resources to enlist in order to thoroughly investigate and prosecute such crimes.

If you are being investigated or have been arrested for allegations of mortgage fraud in Orange County, you need the assistance of competent defense attorneys working to ensure your rights are protected and that you receive your constitutional due process. The criminal defense lawyers at Houston & Blanco can assist with your mortgage fraud allegations and handle any other criminal accusations against you. Call TODAY! Do NOT WAIT! Call the Orange County criminal defense attorneys of Houston & Blanco at 714.841.3921 or email at info@HBLawyers.net .