Fraudulent Loan Applications
Fraudulent loan application activity is defined as any intentional and material omission, misrepresentation, or misstatement relied upon by a lender or underwriter to fund, insure, or purchase a loan.
Fraudulent Loan Activity Includes the Following Actions:
- Failure to disclose liabilities
- Failure to disclose primary or secondary residence
- Falsification of employment
- Overstatement of income
Who Can Be Charged with Creating a Fraudulent Loan Application?
Finance-related and business-related occupations are the Most Commonly Reported Suspect Occupations Associated with Mortgage Fraud. If a lender believes he or she has discovered a false statement on a loan application, he or she may require the loan balance immediately be paid in full, and if such repayment is not possible, the lender may attempt to seize the property in question.
Penalties for Fraudulent Loan Applications
Fraudulent loan application activity is a federal crime carrying possible jail time and hefty fines, as well as potential damage done to one's credit rating, which can prevent one from obtaining any future loans from reputable lenders.
Mortgage Fraud Investigations
State and federal investigations into mortgage fraud have increased in the wake of the recent collapse of the subprime mortgage market. No central government agency is responsible for all mortgage fraud complaints. Instead, federal mortgage fraud investigations are conducted by a Mortgage Fraud Task Force that includes:
- The FBI
- The IRS, Criminal Investigation Division
- The U.S. Department of Housing and Urban Development Office of Inspector General
- The U.S. Department of Justice
- The U.S. Postal Service
- The U.S. Secret Service
We Can Help
While federal investigations commonly take years, once the government thinks it has collected sufficient information to establish its case, the trial may begin less than three months after the indictment. This is why it is important to have the best team of Mortgage Fraud Lawyers, one with the experience and resources to prepare your defense in a timely manner.
The Blanch Law Firm has this expertise. Are you facing accusations of fraudulent loan application activity and the possibility of an extensive and intrusive federal investigation? Contact one of our attorneys today by calling (917) 472-9883 or toll-free (866) 690-9316. Your initial consultation is both free and confidential.
