Mortgage Fraud Criminal Charges

 Posted on December 22, 2017 in Federal Crimes

As there are more and more people looking to buy homes, and technology is always evolving, the mortgage fraud rates have increased significantly. People are buying homes with the assumption that there will be no issues that follow. However, there are far too many people who must face foreclosure because of the fraud that took place.

Mortgage Fraud in the Numbers

In the second quarter of 2017, there have been an estimated 13,404 mortgage applications estimated to have indications of fraud. Compared to the second quarter of 2016, the mortgage application fraud risk index has increased by 16.9 percent. Many people argue that the continued shift from the refinance-heavy market to a purchase market is a major factor in the increase of mortgage fraud risk. From the second quarter of 2016, there was also a 48 percent increase in loan shares originated through wholesale channels.

Real-Life Situation

In 2016, a woman was forced to move out of her home due to foreclosure, even after making payments on time every single month. In 2010, she received a solicited message regarding a modification of her loan for as little as $600 per month. The message was part of a home modification program that had left homeowners worse off than before if they participated. The applicants would send in paperwork, later being informed that the paperwork had been lost. If they were approved for the loan and then told months later that they did not meet the requirements, they would then have to reapply and pay the difference in the modified payment and the original mortgage loan.

Consequences of Mortgage Fraud

When a person intentionally makes false statements or reports on any property or overvalues the property to influence the action of a financial institution to act upon any agreements or discounts, then he or she has committed fraud.

If the full value of the property does not exceed $500, then the person will be charged with a Class A misdemeanor.

•  The offender will be charged with a Class 4 felony if the value of the property is less than $500, but has been previously convicted of a financial crime.
• If the property value is between $500 and $10,000, then the offender will be charged with a Class 3 felony.
• A Class 2 felony will be charged when the property value is between $10,000 and $100,000.
• If the property value is between $100,000 and $500,000, then the offender will be charged with a Class 1 felony.
• The offender will be charged with a Class 1 non-probationable felony if the property value is between $500,000 and $1,000,000.
• If the property value exceeds $1,000,000, then the offender will be charged with a Class X felony.

Call a Chicago Mortgage Fraud Defense Lawyer

Being charged with mortgage fraud is very serious. You may not be able to pursue employment opportunities and overall quality of life if you have been charged with this crime. At the Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney, we will help you achieve the best results. For a free initial consultation, please call a Chicago criminal defense attorney at 312-629-0669 to get the help you deserve.

Sources:

http://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=072000050K17-10.6

http://www.corelogic.com/research/mortgage-fraud-trends/2017-mortgage-fraud-trends-report.pdf

http://newyork.cbslocal.com/2017/11/17/bank-of-america-mortgage-scam/