Equity skimming is defined as a subprime lending refinance practice that “skims the equity” out of a property. An individual accused of equity skimming might be thought to have solicited a homeowner rapidly approaching foreclosure, offering this homeowner a loan in exchange for the transferal of title.
Investigation and prosecution of mortgage fraud are on the rise as subprime lending has come under increased fire from the federal government. If you or someone you know is facing an investigation related to equity skimming allegations, it is important that you secure the best possible legal defense as early as possible. Contact the team of Mortgage Fraud Attorneys at The Blanch Law Firm, P.C. today for a free and confidential initial consultation.
Corporate shell companies, corporate identity theft, or the use or threat of bankruptcy or foreclosure
False credit reports, false income documents, and a "straw buyer"
Mortgage Fraud is an identified priority crime problem area for the Financial Crimes Unit of the FBI. All mortgage fraud programs, even those not targeting financial institutions, have been consolidated within the Financial Institution Fraud Unit to increase the effectiveness and efficiency of FBI mortgage fraud investigations. The FBI collects information on mortgage fraud through the Department of Housing and Urban Development-Office of Inspector General, Suspicious Activity Reports filed by federally-insured financial institutions, as well as complaints from the mortgage industry in general.
Equity skimming on mortgages insured by the Federal Housing Administration is a federal crime. In New York, equity skimming is also prohibited by the Home Equity Theft Prevention Act. This law has been criticized for preventing homeowners facing foreclosure from finding investors when that might be the only path that would enable the homeowner to save his or her home.
Accusations of equity skimming can lead to federal felony charges, and investigation and prosecution is often aggressive, extensive, and intrusive. Conviction can result in prison sentences and substantial compensatory and/or punitive monetary damages.
If you are facing allegations of equity skimming and/or a federal investigation, you need the best team of Mortgage Fraud Attorneys. The Blanch Law Firm has the experience and resources to represent your interests. Contact one of our equity skimming attorneys by calling 888-984-5579 . Your initial consultation is both free and confidential.