Anyone convicted of mortgage fraud will face harsh penalties, including jail time, fines, and restitution. Foreclosure fraud and other types of real estate fraud are normally a California “wobbler” offense that means the prosecutor has the discretion to file the case as either a misdemeanor or felony crime.
Proving a mortgage fraud case must include proving the money flow. However, there are other material facts involved in the lending process, such as appraisals, source of funds, borrower qualifications, and title history of the property that are often falsified to accomplish the fraudster's desired money flow.
In fact, it's estimated that about 80 percent of the mortgage fraud losses come from those who work in the housing industry, such as appraisers, accountants, attorneys, real estate brokers, mortgage underwriters/processors, settlement/title company employees, mortgage brokers, and loan originators, according to the FBI ...
Mortgage fraud is a sub-category of FIF. It is crime characterized by some type of material misstatement, misrepresentation, or omission in relation to a mortgage loan which is then relied upon by a lender.
Typically bank fraud investigations take up to 45 days.
Who is typically the perpetrator in a fraud for property scheme? The perpetrator in a fraud for property scheme is usually the borrower. Typically, there is no industry insider directing the illegal activity. Therefore, the borrower is the one with the agenda and the one who hopes to gain from the fraud.
Red Flag #1: When they offer you a rate that's lower than the APR. When a mortgage's APR is much higher than the actual rate, it means that the fees are a lot higher, too - and you'll be paying them over the life of your loan. A low rate might be enticing, but you have to consider the long-term cost.
Individuals who commit mortgage fraud are those with insider access to the mortgage industry, using their knowledge, connections and skills to commit the fraud. A high percentage of people who commit this type of crime are bank officers, appraisers, brokers, loan originators and others.
30 yearsPrison penalties for mortgage fraud can be significant. A conviction for federal mortgage fraud charges can result in a federal prison sentence of 30 years, while state convictions can last a few years or more. Misdemeanor fraud convictions can bring jail sentences of up to a year.
(c) The maximum amount of penalty for each act or omission described in subdivision (b) shall be twenty-five thousand dollars ($25,000). (d) Each violation or failure to comply with any directive or order of the commissioner is a separate and distinct violation or failure. (Added by Stats.