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Understanding mortgage fraud

On Behalf of | Apr 1, 2021 | Criminal Defense

Mortgage fraud is a serious crime in Texas. Most instances of mortgage fraud you would likely know that you’re committing, but it’s always best to understand the seriousness of the crime and when you might be considered to be engaging in mortgage fraud so that you can avoid it. And if you suspect that you might already be the subject of an investigation, you should know what you should do to protect yourself.

Two types of mortgage fraud

If you work at a bank with the mortgage loan department, you have access to sensitive information that some people would manipulate to their advantage, and some of these activities might constitute mortgage fraud. This particular type of mortgage fraud is called fraud for profit, and the FBI is particularly harsh in cases where industry experts use their knowledge to defraud lenders and homeowners. Many times, it requires collusion with multiple other professionals, including mortgage brokers, appraisers, attorneys, and other professionals in the industry.

People who commit fraud while trying to secure housing are engaged in a type of mortgage fraud called fraud for housing. This type of fraud usually involves the borrower misrepresenting income or assets in order to secure the loan.

If you might be subject of an investigation

If you ever think that you’re the subject of an investigation, there are some things that might have tipped you off. For instance, you might receive a target letter letting you know that you’re under investigation, or you might receive a subpoena to be in court. The police might approach you, or your property might be subject to a search warrant. If you find yourself in this situation, there are a few things that you should do to protect yourself. First of all, get an attorney. You should also never talk to the police without your attorney present, and never tamper with evidence.

Mortgage fraud is a serious crime, and anyone who thinks that they’re under investigation for it should seek legal advice from an attorney versed in white-collar crimes.